AEGIS AR ARTWORK FINAL 2007Aegis Logistics Ltd. 50th Annual Report 2006-2007 10 4. i. Those Members who have not encashed their dividend warrants for the Financial Year 1999-2000 to

Company Vision

Aegis is a leader in oil and gas logistics. We offer services such

as sourcing of product, storage and port operations, arranging road

and pipeline movement, shipping, and integrated supply chain

management.

We believe in providing our customers in the oil, gas and chemicals

industry with end to end solutions, managing every activity in the

supply chain to enable reliable, continuous and competitive supplies

of materials.

Our vision is to provide Total Supply Chain Management for oil, gas

and chemicals.

Our Values

• We will provide the most flexible, responsive and best quality

service to our customers.

• We will strive for the highest standards of integrity, hard work,

professionalism and discipline.

• We will place a strong emphasis on safety, protecting the

environment and attaining world-class standards in every sphere

of activity.

• We shall strive to make a substantial contribution to the welfare

and needs of the community and the society at large.

• We shall endeavour to maximise value for our shareholders.

Aegis Logistics Ltd.50th Annual Report 2006-2007

�

Company Information

Board of Directors

CHAIRMAN

K. M. CHANDARIA

VICE-CHAIRMAN

R. K. CHANDARIA

DIRECTORS

A. M. CHANDARIA

R. P. CHANDARIA

A. K. CHANDARIA

V. B. GANGAR

D. J. KHIMASIA

R. J. KARAVADIA

K. S. NAGPAL

MANAGING DIRECTOR

S. K. HAZRA

COMPANY SECRETARY

J. N. SHAH

BANKERSBank of BarodaDena BankING Vysya Bank Ltd.

SOLICITORS & ADVOCATESANS Law Associates, Mumbai

AUDITORSC. C. Chokshi & Co., Chartered Accountants, Mumbai

REGISTERED OFFICE502, Skylon,G.I.D.C., Char Rasta,Vapi-396 195, Dist. Valsad,Gujarat

CORPORATE & ADMINISTRATIVE OFFICE403, Peninsula Chambers,G. K. Marg, Lower Parel (West), Mumbai-400 013.Tel. : 022-6666 3666Fax : 022-6666 3777Website : www.aegisindia.com

LIqUID LOGISTICS & GAS DIVISIONPlot No. 72, Mahul Village,Trombay, Mumbai-400 074.

REGISTRAR & SHARE TRANSFER AGENTSSharepro Services India Pvt. Ltd.Satam Estate, 3rd Floor, Above Bank of Baroda,Chakala, Andheri (East), Mumbai-400 099. Working Hours: 9.30 to 1.00 & 1.45 to 5.00Tel. : 022-2832 9828, 2821 5168Fax : 022-2837 5646

ContentsCompany Information 1Financial Overview 2Management Discussion & Analysis Report 3Notice 9Directors’ Report 12Report on Corporate Governance 16Auditors’ Report 23Balance Sheet 26Profit & Loss Account 27Cash Flow Statement 28Schedules 30Statement relating to Subsidiary Companies 50Consolidated Financial Statements 51

Please address all correspondence regarding Share Transfer Work to the Registrar & Share Transfer Agents and/or Corporate Office

Members are requested to

bring their copy of

Annual Report to the

Annual General Meeting.

2 3

2 3

4 5

4 5

6 7

6 7

8


�

Notice

NOTICE is hereby given that the 50th Annual General Meeting of the Members of AEGIS LOGISTICS LIMITED will be held at Hotel Galaxy, National Highway No. 8, near Koparali Road, G.I.D.C., Vapi 396 195, Gujarat on Tuesday, 11th September, 2007 at 11.30 a.m. to transact the following business :

ORDINARY BUSINESS :

1. To receive, consider and adopt the Audited Balance Sheet as at 31st March, 2007 and Profit and Loss Account for the year ended on that date together with Directors’ and Auditors’ Report thereon.

2. To declare dividend on Equity Shares.

3. To appoint a Director in place of Mr. D. J. Khimasia, who retires by rotation and being eligible offers himself for re-appointment.

4. To appoint a Director in place of Mr. V. B. Gangar, who retires by rotation and being eligible offers himself for re-appointment.

5. To appoint a Director in place of Mr. R. J. Karavadia, who retires by rotation and being eligible offers himself for re-appointment.

6. To appoint M/s. Deloitte Haskins & Sells, Chartered Accountants, as the Statutory Auditors of the Company from the conclusion of this meeting till the conclusion of the next Annual General Meeting in place of M/s. C. C. Choksi & Co., Chartered Accountants and to authorize the Board to fix the remuneration of the Auditors.

By order of the Board of Directors

Place : Mumbai Jignasha ShahDated : 31st July, 2007 Company Secretary

NOTES :

1. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED TO APPOINT ONE OR MORE PROXY TO ATTEND AND ON A POLL VOTE INSTEAD OF HIMSELF AND A PROXY NEED NOT BE A MEMBER. PROXIES IN ORDER TO BE EFFECTIVE, SHOULD BE DULY COMPLETED, STAMPED AND MUST BE DEPOSITED AT THE REGISTERED OFFICE OF THE COMPANY NOT LESS THAN FORTY-EIGHT HOURS BEFORE THE COMMENCEMENT OF THE MEETING.

2. The Register of Members and Share Transfer Books of the Company will remain closed from 28th August, 2007 to 11th September, 2007 (both days inclusive).

3. The Dividend, as recommended by the Board, if sanctioned at the ensuing Annual General Meeting will be paid to those members or their mandates whose names stand registered on the Company’s Register of Members :

i. As Beneficial Owners as at the end of business on Monday, 27th August, 2007 as per the list to be furnished by National Securities Depository Ltd. (NSDL) and Central Depository Services (India) Ltd. (CDSL) in respect of shares held in demat form.

ii. As Members holding shares in Physical Mode as per Register of Members of the Company as on Monday, 27th August, 2007.


10

4. i. Those Members who have not encashed their dividend warrants for the Financial Year 1999-2000 to 2005-2006 are requested to return the time barred dividend warrants or forward their claims to the Company.

ii. Pursuant to the provisions of Section 205A of the Companies Act, 1956, as amended, dividend for the Financial Year 1999-2000 which shall remain unclaimed/unpaid for a period of 7 years from the date of transfer to the unpaid dividend account is due for transfer in November, 2007 and will be transferred to the Investor Education and Protection Fund constituted by the Central Government under Section 205C of the Companies Act, 1956. It may be noted that once the unclaimed dividend is transferred to the Government, as above, no claim shall lie in respect of such amount against the Company/Fund.

5. Shareholders holding shares in electronic mode may please note that the Company will accept and print on the dividend warrants, the bank details as furnished by the respective Depositories as advised by the Securities and Exchange Board of India (SEBI). Any changes in your Bank details may be brought to the notice of the respective Depository Participant immediately.

Shareholders holding shares in physical form may avail the facility of Electronic Clearing Services (ECS) for receiving direct credit of dividend to their accounts with Banks for expeditious credit and to protect from loss, theft and postal delay of dividend warrant. Bank details for the said purpose may be given to the Company’s Registrar and Share Transfer Agents alongwith a copy of duly cancelled cheque leaf.

6. Members holding shares in physical form are requested to lodge share transfer, transmission and intimate changes, if any, in their registered address, bank account and mandate details, residential status etc. quoting their folio number(s) to Company’s Registrar and Share Transfer Agents.

7. Shareholders seeking any information with regard to accounts are requested to write to the Company Secretary at the Corporate Office of the Company at least 10 days in advance, so as to keep the information ready at the Meeting.

8. Members may avail the facility of nomination in terms of Section 109A of the Companies Act, 1956 by nominating in the prescribed form a person to whom their shares in the Company shall vest in the event of their death. The prescribed form can be obtained from the Company’s Registrar and Share Transfer Agents.

9. Brief resume of Directors being re-appointed :

a. Mr. D. J. Khimasia – Age : 66 Shareholding : Nil

Mr. D. J. Khimasia is a Commerce and Law Graduate. He is a Businessman by profession and a Trader in Agricultural Produce. He has several years experience in the field of Bulk Drugs, Plastics and Textiles.

Other Directorships held : i. Khimasia Plastic Pvt. Ltd. ii. Khimasia Rubber Industries Pvt. Ltd. iii. Jethalal Nemchand Export Pvt. Ltd. iv. Metochem Exports Pvt. Ltd. v. Sea Lord Containers Ltd.

b. Mr. V. B. Gangar – Age : 67 Shareholding : 212

Mr. V. B. Gangar has been associated with the Company as Director since 1999. He is a Businessman by profession and he is having about four decades of experience in Steel Business. He has a good knowledge of Business and Industry in general and Steel Industry in particular.

Other Directorships held : Nilgiri Investment Co. Pvt. Ltd.


11

c. Mr. R. J. Karavadia – Age : 60 Shareholding : 22

Mr. R. J. Karavadia has been associated with the Company as Director since 1999. Mr. R. J. Karavadia is a B.Com and I.I.C.W.A. He has several years of experience in the field of Production Personnel, Finance, Marketing, Purchase etc. He has held senior position in various Companies. Presently he is carrying on his own business as an indentor for Importers & Exporters of Chemicals and Minerals.

Other Directorships held : i. Nilgiri Investment Co. Pvt. Ltd. ii. Five Star Textiles Rags (India) Pvt. Ltd. iii. Anarde Rural Support Programme (India) iv. Samsara Herdo Solution Pvt. Ltd.

By order of the Board of Directors

Place : Mumbai Jignasha ShahDate : 31st July, 2007 Company Secretary


12

Directors’ Report

To the Members of the Company

The Directors have pleasure in presenting the 50th Annual Report and Audited Statement of Accounts of the Company for the year ended 31st March, 2007.

FINANCIAL PERFORMANCE

(Rs. in crores)

2006-07 2005-06

Sales and Other Income ......................................................... 243.73 158.88

Gross Profit (before interest and depreciation) ....................... 33.28 42.21

Profit before tax ...................................................................... 27.75 35.82

Provision for taxation – Current ........................................... 3.65 5.00

– Fringe Benefit ................................. 0.20 0.27

– Deferred ......................................... 0.31 0.35

Net Profit after tax ................................................................... 23.5� 30.20

Balance in P & L A/C ............................................................... 65.62 42.84

Profit available for distribution ................................................ 8�.21 73.30

OPERATING PERFORMANCE

The Company earned gross profit before interest, depreciation and tax of Rs. 33.28 crores during the current year. Profit before tax stood at Rs. 27.75 crores. Net profit after tax was Rs. 23.59 crores.

LIQUID LOGISTICS DIVISION

This division has continued to perform well in the year 2006-07. The business volumes were healthier both in Petroleum and Bulk Chemicals as well as Refinery Pipelines throughput. With expansion of one of the Oil Refinery being completed and the second one likely to be completed by beginning of next year, major growth in business volumes of petroleum products are expected next year. The upgradation and improvement programme at Trombay site is almost completed.

The Company is putting its substantial efforts and resources to promote Responsible Care. It is also implementing a Kaizen programme in its Trombay site. It is already an ISO 9001 and ISO 14001 Company.

The Company has already reached the productivity level compared to best in global standards. The Group’s major expansion project in the second site is proceeding as per schedule. It is now planning another major expansion of capacity for non-hazardous products in its existing sites.

The Company acquired the largest independent private tank terminal in Cochin Port at the end of the financial year.


13

The Company also entered a virgin market of Operating and Maintenance (O&M) Contract of third party Terminal by winning in its maiden attempt to provide O&M service to MRPL Inland Tank Terminal in Kerala.

GAS DIVISION

The Company achieved good growth in its Gas business. Buoyed by high industrial growth rate, the Company has increased its Propane market in western India by increasing volumes with the existing customers as well as new customers. It also provided logistics service for both the Government Oil Companies in western India by supplying substantial volumes of LPG for them.

The Company also succeeded in establishing itself as a major player in the Autogas market under the “Aegis Autogas” brand, stressing on its superior quality. A number of Aegis Autogas Stations were commissioned in the states of Maharashtra and Gujarat and large numbers are under execution in seven States.

DIVIDEND

The Directors are pleased to recommend the Equity Dividend of Rs. 2.50 per Share (previous year Rs. 2.50 per Share) for the year ended 31st March, 2007, which if approved at the forthcoming Annual General Meeting will be paid in proportion to the amount paid up or credited as paid up to those Equity Shareholders of the Company whose names appear on the Register of Members as on date of Annual General Meeting.

OUTLOOK FOR THE COMPANY

In Autogas, last year the Company expressed its plan to sign-up 100 Stations by 2007-08, which has already been achieved as of now. Aegis Autogas brand is now well established and known for its superior quality and performance. With crude prices soaring, there is a rapid growth of cheaper environmental friendly fuel i.e. Auto LPG for three and four wheelers.

Consumption of petroleum products continued to grow at a fast pace in tune with India’s industrial growth. Demand for specialized Third Party Logistics under one roof is growing and the Company is in unique position to seize the opportunity. The Company’s top most priority is to stick to safety first motto, follow strict environment norms and establish itself as a leader in its field of business. The Company’s move in setting-up of national network in multi port locations has been well received by Indian Chemical, Oil and Gas industry.

The Company is on track to implement its strategic plan to set up a national network of oil and chemical port based logistics facilities. The Company acquired Konkan Storage Systems (Kochi) Pvt. Ltd, in Kochi as part of this strategy. Further acquisitions and Greenfield sites are planned.

FINANCE

The Company is in a sound financial position with key ratios indicating sound financials. Low financial gearing will enable the Company to undertake Greenfield projects. CARE has renewed credit rating AA- in respect of Long Term Debt (including secured Non-Convertible Debentures/Term Loan).

CONSOLIDATED FINANCIAL STATEMENTS

As required under the Listing Agreement with the Stock Exchange(s) Consolidated Financial Statement of the Company is attached. The Consolidated Financial Statements have been prepared in accordance with Accounting Standard 21 issued by the Institute of Chartered Accountants of India.


14

FIXED DEPOSITS

Fixed Deposits received from Shareholders, Employees and Public in general as at the close of the financial year amounted to Rs. 5.69 crores. Deposits of Rs. 0.14 crores, which fell due for repayment before the close of the financial year, remained unclaimed by the depositors at the close of the accounting year. There were no overdue deposits other than those unclaimed at the year end.

CORPORATE GOVERNANCE

A report on Corporate Governance, together with a certificate of compliance from the Auditors, forms part of this report.

LISTING OF EQUITY SHARES

The Company’s Equity Shares are listed on the Bombay Stock Exchange Ltd. (BSE) and National Stock Exchange of India Ltd. (NSE). The Company has paid the Listing Fees for the period of 1st April, 2007 to 31st March, 2008.

The delisting application made to the Delhi Stock Exchange Association Ltd, pursuant to shareholders resolution dated 29th September, 2005 for voluntary delisting in compliance of SEBI Delisting Guidelines, is pending since January, 2006 and hence the listing fees for the year 2007-08 is not paid.

DIRECTORS

Mr. D. J. Khimasia, Mr. V. B. Gangar and Mr. R. J. Karavadia retire by rotation and being eligible offer themselves for re-appointment.

AUDITORS

The Auditors of the Company M/s. C. C. Chokshi & Co., Chartered Accountants will retire at the ensuing Annual General Meeting, they have conveyed to the Company that they do not wish to seek re-appointment. The Board of Directors therefore recommend the appointment of M/s. Deloitte Haskins & Sells, Chartered Accountants, who have confirmed to the Board of Directors that if appointed by the Company at Annual General Meeting, such appointment would be within the limits prescribed under the provisions of Section 224(1B) of the Companies Act, 1956.

PARTICULARS OF EMPLOYEES

In terms of the provision of section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975 as amended, the name and other particulars of the employees are required to be set out in the Annexure to the Directors’ Report. However as per the provisions of Section 219(1)(b)(iv) of the said Act, the Annual Report excluding the aforesaid information is being sent to all the Members of the Company and others entitled thereto. Members who are interested in obtaining such particulars may write to the Company at its Corporate Office.

HEALTH, SAFETY & ENVIRONMENT (HSE) AND RESPONSIBLE CARE

The Company continues to be the first and the only independent Gas and Chemical Logistics Company in the country to achieve three coveted certifications i.e ISO 9001, ISO 14001 and OHSAS 18001. The Company’s surveillance audit under these certifications has been completed.

The Company, which is the first Logistics Company in the country to adopt Responsible Care continued to give a major thrust in training in Responsible Care in-house and through Experts. The Company


15

continued to put all efforts in establishing itself as number one Logistics Company known for its safety, health and environment performance.

The Company’s executives attended various workshops, seminars on HSE, some being organized by the Company personnel themselves.

The Company continues to extend support to various Industry forums e.g. Bombay Chamber of Commerce and Industry, Indian Chemical Council etc. in the field of HSE and Infrastructure.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, EXPORTS & FOREIGN EXCHANGE EARNINGS AND OUTGO

Particulars required to be furnished pursuant to Section 217(1)(e) of the Companies Act, 1956 read with Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 :

(i) Part A and B of the Rules, pertaining to conservation of energy and technology absorption are not applicable to the Company.

(ii) Foreign Exchange earnings and outgo are provided in Note No. G & E of Schedule 18 forming part of the Accounts.

DIRECTORS’ RESPONSIBILITY STATEMENT

The Directors would like to inform the Members that the Audited Accounts for the Financial Year ended 31st March, 2007 are in full conformity with the requirement of the Companies Act, 1956. The Financial Results are audited by the Statutory Auditors, M/s. C. C. Chokshi & Co. The Directors further confirm that :

(i) in the preparation of the Annual Accounts, the applicable accounting standards have been followed;

(ii) the accounting policies are consistently applied and reasonable, prudent judgment and estimates are made so as to give a true and fair view of the state of affairs of the Company at the end of the Financial Year and of the profits of the Company for that period;

(iii) the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the Assets of the Company and for preventing and detecting fraud and other irregularities;

(iv) the Directors have prepared the Annual Accounts on a going concern basis.

APPRECIATION

The Board of Directors gratefully acknowledge the assistance, support and co-operation received from the authorities of Mumbai Port Trust, Bankers, Central and State Government Depts., Shareholders, Suppliers, Customers and the Employees.

For and on behalf of the Board

Place : Mumbai K. M. ChandariaDated : 28th May, 2007 Chairman


16

Report on Corporate Governance

CORPORATE GOVERNANCE

The Company firmly believes in and continues to practice good Corporate Governance. The Company’s essential character is shaped by the very values of transparency, professionalism and accountability. The Company continuously endeavours to improve on these aspects on an ongoing basis. In order to achieve this objective, the Company is driven by the following guiding principles:

a. Improving the effectiveness of the Board of Directors in supervising management; and

b. Improving the quality of information and communication with our stakeholders.

The Company believes that these two principles will result in a better shareholders value.

BOARD OF DIRECTORS

The Board of Directors of the Company comprises of Chairman, Vice Chairman, Managing Director and Independent Directors. As on 31st March, 2007 the Company has Ten Directors. During the year under review eight Board Meetings were held the dates being 16/05/2006, 26/05/2006, 21/07/2006, 21/09/2006, 31/10/2006, 30/01/2007, 15/03/2007, 26/03/2007. Details of Directors & their attendance at the Board Meetings and Annual General Meeting are given below:

Sr. Name of the Status No. of No. of No. of Attendance atNo. Director Shares

heldother

Director- ships (Refer

Note 1)

Chairmanship/ Membership

in Board Committee across all the Companies (Refer Note No. 5)

Board Meetings

Last AGM held on

21/09/2006

Chairman Member

1 2 3 4 5 6 7 8

1. Mr. K. M. Chandaria (Chairman)

NED-NI — 1 — 2 7 Yes

2. Mr. R. K. Chandaria (Vice – Chairman)

NED-NI — 1 — — 5 Yes

3. Mr. S. K. Hazra (Managing Director)

ED 2150 3 — 2 8 Yes

4. Mr. A. M. Chandaria NED-NI — — — — 2 —

5. Mr. R. P. Chandaria NED-I — 1 — — 1 —

6. Mr. A. K. Chandaria NED-NI — 3 1 1 5 Yes

7. Mr. V. B. Gangar NED-I 212 — — 2 8 Yes

8. Mr. D. J. Khimasia NED-I — 1 1 3 8 Yes

9. Mr. R. J. Karavadia NED-I 22 — — — 8 Yes

10. Mr. K. S. Nagpal NED-I — — — — 7 Yes

NOTES : 1. No. of other Directorships excludes Directorships held in Private Limited Companies. 2. NED-I - Non Executive Director – Independent 3. NED-NI - Non Executive Director – Non Independent 4. ED - Executive Director 5. In accordance with Clause 49, Chairmanship/Membership of only Audit Committee and Shareholders’/Investors’

Grievance Committee of all Public Limited Companies has been considered

Brief Profile/Resume of the Directors seeking re-appointment is furnished in Notice convening 50th Annual General Meeting.


17

AUDIT COMMITTEE

Terms of reference :

The Audit Committee is to oversee the Company’s financial reporting process and disclosure of its financial information, to recommend the appointment of Statutory Auditors and fixation of their fees, to review and discuss with the Management & the Auditors about internal control systems, the scope of Audit including the observations of the Auditors, adequacy of the internal audit system, changes in accounting policies & practices and major accounting entries involving estimates, compliances with accounting standards and Listing Agreement entered into with the Stock Exchanges and other legal requirements concerning financial statements and related party transactions, if any, and discuss with the Internal Auditors any significant findings for follow-up thereon, to review the Quarterly, Half yearly and Annual Financial Statements before they are submitted to the Board of Directors.

Minutes of the Audit committee Meetings are circulated to the Members of the Board, discussed and taken note of.

Composition, Name of Members and Chairperson :

Sr. No.

Name of the Director

Status No. of Meetings attended

Date of Audit Committee Meeting

1. Mr. D. J. Khimasia * NED-I 4 26/05/2006

21/07/2006

31/10/2006

30/01/2007

2. Mr. K. M. Chandaria ** NED-NI 4

3. Mr. V. B. Gangar NED-I 4

NOTE: * NED-I - Non-Executive Director – Independent

** NED-NI - Non-Executive Director – Non-Independent

SHAREHOLDERS’/INVESTORS’ GRIEVANCE COMMITTEE

Non-Executive Director heading the Committee : Mr. K. M. Chandaria

Compliance Officer : Ms. Jignasha Shah, Company Secretary

No. of Complaints received during the year : 63

No. of Complaints remaining un-resolved : Nil

No. of Pending Share Transfers : 31 requests for transfer were pending for approval as on 31/03/2007 which were approved during April, 2007.

Complaints/Correspondences are usually dealt expeditiously and as on 31st March, 2007 no complaint is pending.

REMUNERATION TO DIRECTORS

The remuneration of the Managing Director is approved by the Board of Directors and the Shareholders. Hence no separate Remuneration Committee has been constituted. The Managing Director is paid by way of salary, commission, perquisites etc. based on his contract. Pursuant to the authority granted by the Shareholders, the annual increment for the Managing Director is approved by the Board annually.

Non-Executive Directors are paid Sitting Fees of Rs. 5,000/- for each Board Meeting attended by them. Those Non-Executive Directors who are Members of other Committees viz. Share Transfer Committee, Audit Committee, Shareholders Grievance Committee are paid Sitting Fees of Rs. 1,000/- for each such Committee Meeting attended by them.


18

Details of Remuneration paid/payable to Mr. S. K. Hazra, Managing Director is as follows :

Particulars Amount (Rs. in lacs)

Salary 29.67

Commission 33.30

Company’s Cont. towards P.F. and other funds 8.01

Perquisites in cash or in kind 11.16

Total 82.14

In terms of Shareholders’ approval given at the 47th Annual General Meeting held on 25th September, 2004 and further in partial modification to the said approval, the Members at the AGM held on 29th September, 2005 approved the revision in the remuneration payable to Mr. Hazra which inter-alia included payment of commission at an increased rate not exceeding 1.20% p.a. of the net profits of the Company calculated as per provisions of Section 349 and 350 and other relevant provisions of the Companies Act, 1956.

The Company also contributes to the LIC Group Gratuity Scheme for Mr. Hazra. His terms of appointment inter-alia provide that the Agreement can be terminated with notice of six calendar months on either side or by the Company on payment of six months salary.

GENERAL BODY MEETING

Details of last three Annual General Meetings (AGM) :

Financial Year Date Venue Time

31/03/2004 25/09/2004 Hotel Galaxy Inn, National Highway No. 8,

Near Koparli Road, G.I.D.C., Vapi 396 195, Dist. Valsad, Gujarat State.

11.30 a.m.

31/03/2005 29/09/2005 Same as above 11.30 a.m.

31/03/2006 21/09/2006 Same as above 11.30 a.m.

One special resolution was passed in the previous three Annual General Meetings. No Special Resolution was passed at the last Annual General Meeting which falls under The Companies (Passing of the Resolution by Postal Ballot) Rules, 2001. Further, no resolution is proposed to be conducted through Postal Ballot at the ensuing Annual General Meeting.

DISCLOSURES

The Company has complied with the requirements of Stock Exchanges or SEBI or any Statutory Authority related to Capital Markets during the last three years.

There were no materially significant related party transactions with its Promoters, Directors, the Management or relatives that have a potential conflict with the interest of the Company at large. Transactions with related parties as per requirements of Accounting Standard 18 (Related Party Disclosures) issued by the Institute of Chartered Accountants of India are disclosed in note B. 8 of Schedule 18 to the Accounts in the Annual Report.

The Board is kept informed about the risk assessment and minimization procedures.

There has been no instance of non-compliance by the Company on any matter related to capital markets. Hence, the question of penalties or strictures being imposed by SEBI or the Stock Exchanges does not arise.


1�

MEANS OF COMMUNICATION

The Quarterly/Half yearly Unaudited Financial Results and Audited Financial Results are published in :

English Editions Regional (Gujarati) Editions

Economic Times Financial Express Daman Ganga Times

As per the requirements of Clause 51 of Listing Agreement, the Quarterly Financial Results, Shareholding Pattern are uploaded on SEBI’s website at http://sebiedifar.nic.in

The Shareholders can post/email their grievances at [email protected]

The Results are also displayed on the Company’s website at www.aegisindia.com

The Management Discussion and Analysis Report forms part of this Annual Report.

GENERAL SHAREHOLDER INFORMATION

50th Annual General Meeting – Date, Time and Venue

Date Time Venue

11th September, 2007 11.30 a.m. Hotel Galaxy Inn, National Highway No. 8, Near Koparli Road, G.I.D.C., Vapi 396 195,

Dist. Valsad, Gujarat State

Financial Calendar

Financial Year : 1st April, 2007 to 31st March, 2008

1st Quarter Results (April – June, 2007) : By last week of July, 2007

2nd Quarter Results (July – September, 2007) : By last week of October, 2007

3rd Quarter Results (October – December, 2007) : By last week of January, 2008

4th Quarter Results (January – March, 2008) : By last week of April, 2008

OR OR

Audited Results for the year ended 31st March, 2008 : By 30th June, 2008

Annual General Meeting for the Financial Year 2007-08 : By September, 2008

Book Closure : 28th August, 2007 to 11th September, 2007 (Both days inclusive)

Dividend Payment Date : On or after 15th September, 2007

Listing on Stock Exchanges

The Shares of the Company are listed on :

Shares listed at Stock Code

The Bombay Stock Exchange Ltd. 500003

The National Stock Exchange of India Ltd. AEGISCHEM

Annual Listing Fees for the year 2007-08 have been paid. The delisting application to Delhi Stock Exchange, pursuant to Shareholders resolution dated 29th September, 2005, for voluntary delisting in compliance of SEBI Delisting Guidelines, is pending and hence the listing fees for the year 2007-08 is not paid.


20

Market Price Data

Performance in comparison to broad-based indices — BSE Sensex

Share Transfer System

1. The Registrar & Share Transfer Agents, after processing valid Share Transfer Forms, forwards the Transfer Register for the approval of the Share Transfer Committee;

2. The said Committee meets fortnightly and approves the Share Transfers;


21

3. The Share Transfer Register duly signed by Committee Members is forwarded to the Registrar;

4. The Registrar immediately thereafter dispatches the Share Certificates duly endorsed to the Transferee.

5. The Company obtains from a Company Secretary in practice half-yearly certificate of compliance with the share transfer formalities as required under Clause 47(c) of the Listing Agreement with Stock Exchange(s) and files a copy of the certificate with the Stock Exchange(s).

Distribution of Shareholding as on 31st March, 2007

Range No. of Shareholders

% of Shareholders

No. of Shares held

% of Shareholding

Upto 500 26061 95.217 2805216 17.167

501 – 1000 791 2.890 616486 3.773

1001 – 2000 272 0.994 406201 2.486

2001 – 3000 83 0.303 215513 1.319

3001 – 4000 37 0.135 128718 0.788

4001 – 5000 35 0.128 166442 1.019

5001 – 10000 44 0.161 323718 1.981

10001 – 9999999998 47 0.172 11678290 71.468

TOTAL 27370 100.000 16340584 100.00

Dematerialisation of Shares and Liquidity

The Company’s ISIN No. is INE 208C01017. As on 31st March, 2007, 14756269 Equity Shares being 90% of the Share Capital of the Company have been dematerialised.


22

Outstanding GDRs/ADRs/Warrants or any Convertible Instruments, Conversion Date and likely impact on EquityThere are no such outstanding instruments.

NON-MANDATORY REQUIREMENTS

1. The Company has Non-Executive Chairman. He is reimbursed travel expenses incurred by him to attend Board Meetings of the Company.

2. The Company has not formulated any formal Whistle Blower Policy and that no personnel has been denied access to Audit Committee.

Registrar & Share Transfer Agents/Plant Location/Address for Correspondence

Registrar & Share Transfer Agents

Plant Location Address for Correspondence

Sharepro Services India Private Limited Satam Estate, 3rd Floor, Above Bank of Baroda,

Cardinal Gracious Road, Chakala, Andheri (E), Mumbai – 400 099.

Aegis Logistics Limited Plot No. 72,

Mahul Village, Trombay,

Mumbai – 400 074.

Aegis Logistics Limited 403, Peninsula Chambers, Peninsula Corporate Park,

G. K. Marg, Lower Parel (W),

Mumbai – 400 013.

DECLARATION

All the Directors & Senior Management Personnel have affirmed compliance with the code of conduct as approved and adopted by the Board of Directors.

For Aegis Logistics Ltd.

Place : Mumbai S. K. HazraDate : 28th May, 2007 Managing Director

CERTIFICATEAuditors’ certificate to the Members of Aegis Logistics Limited on compliance of the conditions of corporate governance for the year ended 31st March, 2007, under clause 49 of the listing agreements with relevant stock exchanges.

We have examined the compliance of conditions of Corporate Governance by Aegis Logistics Limited (“The Company”) for the year ended 31st March, 2007, as stipulated in Clause 49 of the Listing Agreements of the said Company with relevant Stock Exchanges (hereinafter referred to as clause 49).

The compliance of conditions of Corporate Governance is the responsibility of the Management. Our examination was limited to procedures and implementation thereof, adopted by the Company for ensuring the compliance of the conditions of Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company.

In our opinion and to the best of our information and according to the explanations given to us and representation made by the management, we certify that the Company has complied with the conditions of Corporate Governance as stipulated in the above mentioned Listing Agreements.

We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness with which the management has conducted the affairs of the Company.

For C. C. Chokshi & CoChartered Accountants

R. LaxminarayanPlace : Mumbai PartnerDated : 28th May, 2007. Membership No. 33023


23

Auditors’ Report

To the Members of Aegis Logistics Limited

1. WehaveauditedtheattachedBalanceSheetofAegiSLogiSticSLimited(“thecompany”)asat31stmarch,2007andalsotheProfitandLossaccountandthecashFlowstatementfortheyearendedon thatdateannexed thereto.these financialstatementsare the responsibilityof thecompany’smanagement.ourresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudit.

2. Weconductedouraudit inaccordancewithauditingstandardsgenerallyacceptedinindia.thosestandardsrequirethatweplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreeofmaterialmisstatement.Anauditincludesexamining,onatestbasis,evidencesupportingtheamountsanddisclosuresinthefinancialstatements.Anauditalsoincludesassessingtheaccountingprinciplesusedandsignificantestimatesmadebymanagement,aswellasevaluatingtheoverallfinancialstatementpresentation.Webelievethatourauditprovidesareasonablebasisforouropinion.

3. As required by the companies (Auditor’s Report) order, 2003 issued by the central governmentofindiaintermsofsub-section(4A)ofSection227ofthecompaniesAct,1956weencloseintheAnnexure,aStatementonthemattersspecifiedinparagraphs4and5ofthesaidorder.

4. FurthertoourcommentsintheAnnexurereferredtoinparagraph3above,wereportthat:

(a) Wehaveobtainedalltheinformationandexplanationswhichtothebestofourknowledgeandbeliefwerenecessaryforthepurposesofouraudit;

(b) inouropinion,properbooksofaccountasrequiredbylawhavebeenkeptbythecompanysofarasappearsfromourexaminationofthosebooks;

(c) theBalanceSheet,ProfitandLossaccountandthecashFlowStatementdealtwithbythisreportareinagreementwiththebooksofaccount;

(d) inouropinion,theBalanceSheet,ProfitandLossaccountandthecashFlowStatementdealtwithbythisreportcomplywiththeAccountingStandardsreferredtoinsub-section(3c)ofSection211ofthecompaniesAct,1956;

(e) onthebasisofwrittenrepresentationsreceivedfromthedirectorsason31stmarch,2007andtakenonrecordbytheBoardofdirectors,wereportthatnoneofthedirectorsisdisqualifiedason31stmarch,2007frombeingappointedasadirectorintermsofclause(g)ofsub-section(1)ofSection274ofthecompaniesAct,1956;

(f) inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,thesaidaccounts, readtogetherwith thenotes thereon,give the informationrequiredby thecompaniesAct,1956,inthemannersorequiredandgiveatrueandfairviewinconformitywiththeaccountingprinciplesgenerallyacceptedinindia:

(i) in thecaseof theBalanceSheet,of thestateofaffairsof thecompanyasat31stmarch,2007;

(ii) inthecaseoftheProfitandLossaccount,oftheprofitfortheyearendedonthatdate;and (iii)inthecaseofthecashFlowStatement,ofthecashflowsfortheyearendedonthatdate.

Forc.c.chokshi&coChartered Accountants

R.LaxminarayanPlace : mumbai Partnerdated : 28thmay,2007. membershipNo.33023


24

Annexure to the Auditors’ Report

Referred to in paragraph 3 of our report of even date on the accounts for the year ended 31st March, 2007 of Aegis Logistics Limited.(i) thenatureofthecompany’sactivitiesduringtheyearhasbeensuchthatclauses(xiii)and(xiv)of

paragraph4oftheorderarenotapplicabletothecompanyfortheyear.

(ii) inrespectofitsfixedassets:

(a) thecompanyhasmaintainedproperrecordsshowingfullparticulars,includingquantitativedetailsandsituationoffixedassets.

(b) Allthefixedassetshavenotbeenphysicallyverifiedbythemanagementduringtheyearbutthereisaregularprogramofverificationwhichinouropinionisreasonablehavingregardtothesizeof thecompanyandthenatureof itsassets.Accordingly, themanagementduringtheyearhasconductedaphysicalverificationofcertainfixedassets.Weareinformedthatnomaterialdiscrepancieswerenoticedbythemanagementonsuchverification.

(c) thefixedassetsdisposedoffduringtheyear,inouropinion,donotconstituteasubstantialpartofthefixedassetsofthecompanyandsuchdisposalhas,inouropinion,notaffectedthegoingconcernstatusofthecompany.

(iii) inrespectofitsinventories:

(a) Asexplainedtous,inventorieswerephysicallyverifiedduringtheyearbythemanagementatreasonableintervals.

(b) inouropinionandaccordingtotheinformationandexplanationsgiventous,theproceduresofphysicalverificationofinventoriesfollowedbythemanagementarereasonableandadequateinrelationtothesizeofthecompanyandthenatureofitsbusiness.

(c) inouropinionandaccordingtotheinformationandexplanationsgiventous,thecompanyismaintainingproperrecordsofitsinventoriesanddiscrepanciesnoticedonverificationbetweenthephysicalstocksandthebookrecordswerenotmaterialinrelationtotheoperationsofthecompany.

(iv) Accordingtotheinformationandexplanationsgiventousthecompanyhasnotgrantedortakenanyloans,securedorunsecured,toorfromcompanies,firmsorotherpartiescoveredintheregistermaintainedunderSection301ofthecompaniesAct1956.

inviewofwhathasbeenstatedabove,sub-clauses(b),(c),(d),(f)and(g)ofclause(iii)ofparagraph4oftheorderarenotapplicabletothecompanyfortheyear.

(v) inouropinionandaccordingtotheinformationandexplanationsgiventous,thereareadequateinternalcontrolsystemscommensuratewiththesizeofthecompanyandthenatureofitsbusinesswith regard to purchases of inventory and fixed assets and for the sale of goods and services.Furtheronthebasisofourexaminationofthebooksandrecordsofthecompany,andaccordingtotheinformationandexplanationsgiventous,wehaveneithercomeacrossnorhavebeeninformedofanycontinuingfailuretocorrectmajorweaknessesintheaforesaidinternalcontrolsystems.

(vi) Accordingtotheinformationandexplanationsgiventous,therearenocontractsorarrangementsthatneedtobeenteredintoaRegisterinpursuanceofSection301ofthecompaniesAct,1956.Hence,wehavenocommentstoofferinrespectofclausev(b)oftheorder.

(vii) inouropinionandaccordingtotheinformationandexplanationsgiventous,thecompanyhascompliedwith thedirectives issuedby theReserveBankof indiaand theprovisionsofSections58Aand58AAoranyother relevantprovisionsof thecompaniesAct,1956and thecompanies(Acceptanceofdeposits)Rules,1975withregardtothedepositsacceptedfromthepublic.

WewereinformedthatnoorderhasbeenpassedbythecompanyLawBoardorNationalcompanyLawtribunalorReserveBankofindiaoranycourtoranyothertribunal.


25

(viii) in our opinion, the company has an internal audit system commensurate with its size and thenatureofitsbusiness.

(ix) We are informed that maintenance of cost Records has not been prescribed by the centralgovernmentunderSection209(1)(d)ofthecompaniesAct,1956foranyoftheproductsofthecompany.

(x) inrespectofstatutorydues: (a) Accordingtotheinformationandexplanationsgiventous,thecompanyhasbeengenerally

regularindepositingundisputedmaterialstatutorydues,includingProvidentFund,investoreducationandProtectionFund,employees’Stateinsurance,incometax,Salestax,Wealthtax,Servicetax,customduty,exciseduty,cessandanyotherstatutoryduesapplicabletoitwiththeappropriateauthoritiesduringtheyear.

(b) Accordingtotheinformationandexplanationsgiventous,noundisputedamountspayableinrespectofincometax,Wealthtax,Servicetax,Salestax,customdutyandexcisedutywereoutstandingasat31stmarch,2007forperiodofmorethansixmonthsfromthedatetheybecamepayable.

(c) Accordingtotheinformationandexplanationgiventous,therearenoduesofincometax,Wealthtax,Salestax,Servicetax,customsdutyandexcisedutywhichhavenotbeendepositedonaccountofanydispute.

(xi) thecompanyhasnoaccumulatedlossesasat31stmarch,2007andhasnotincurredanycashlosses during the financial year covered by our audit and the immediately preceding financialyear.

(xii) inouropinionandaccordingtotheinformationandexplanationsgiventous,thecompanyhasnotdefaultedintherepaymentofduestofinancialinstitutions,banksordebentureholdersduringtheyear.

(xiii) According to the informationandexplanationsgiven tous, thecompanyhasnotgrantedanyloansandadvanceson thebasisofsecuritybywayofpledgeofshares,debenturesandothersecurities.

(xiv) thecompanyhasgivenguaranteesamountingtoRs.4500lacsforloanstakenbyasubsidiaryfromabank.inouropinionandaccordingtotheinformationandexplanationsgiventous,thetermsandconditions,ofsuchguarantees,arenotprimafacieprejudicial to the interestof thecompany.

(xv) inouropinionandaccordingtotheinformationandexplanationsgiventous,thetermloansavailedbythecompanywere,primafacie,appliedbythecompanyduringtheyearforthepurposesforwhichtheloanswereobtained,otherthantemporarydeploymentpendingapplication.

(xvi) Accordingtotheinformationandexplanationsgiventousandonanoverallexaminationofthebalancesheetofthecompany,fundsraisedonshort-termbasishave,primafacie,notbeenusedduringtheyearforlong-terminvestment.

(xvii) thecompanyhasnotmadeanypreferentialallotmentofsharestopartiesandcompaniescoveredintheRegistermaintainedunderSection301ofthecompaniesAct,1956duringtheyear.

(xviii) Accordingtotheinformationandexplanationsgiventous,nodebentureshavebeenissuedbythecompanyduring the year. thecompanyhad already created security/charge in respect ofdebenturesoutstandingasatthebeginningoftheyear.

(xix) thecompanyhasnotraisedanymoneybypublicissueduringtheyear.(xx) Accordingtotheinformationandexplanationsgiventous,nofraudonorbythecompanywas

noticedorreportedduringtheyear.Forc.c.chokshi&coChartered Accountants

R.LaxminarayanPlace : mumbai Partnerdated : 28thmay,2007. membershipNo.33023


26

Balance Sheet as at 31st March, 2007

ScheduleRupeesin lacs

As at 31stMarch, 2007

Rupeesin lacs


Rupeesin lacs

I. SOURCES OF FUNDS: 1. Shareholders’ funds: (a) Capital 1 1,630.63 1,630.62 (b) Reserves and Surplus 2 10,222.84 8,339.79

11,853.47 9,970.41

2. Loan funds: (a) Secured Loans 3 2,899.97 1,947.68 (b) Unsecured Loans 4 569.60 696.70

3,469.57 2,644.38 3. Deferred Tax Liability (Net) 756.63 725.63

TOTAL 16,079.67 13,340.42

II. APPLICATION OF FUNDS: 1. Fixed Assets: 5 (a) Gross Block 9,035.78 8,737.02 (b) Less: Depreciation 2,453.82 2,164.94 (c) Net Block 6,581.96 6,572.08 (d) Capital Work-in-Progress 13.40 88.14

6,595.36 6,660.22

2. Investments 6 1,650.32 1,697.49

3. Current Assets, Loans and Advances: (a) Inventories 7 645.60 770.39 (b) Sundry Debtors 8 2,479.98 1,512.83 (c) Cash and Bank Balances 9 2,200.38 1,491.78 (d) Loans and Advances 10 6,073.98 3,551.89

11,399.94 7,326.89

Less: Current Liabilities and Provisions: 11 (a) Current Liabilities 3,035.68 1,835.58 (b) Provisions 530.27 508.60 3,565.95 2,344.18 Net Current Assets 7,833.99 4,982.71

TOTAL 16,079.67 13,340.42

Significant Accounting Policies and Notes on accounts

18

Schedules 1 to 18 annexed hereto form part of these accounts

As per our Attached Report of even date For and on behalf of the Board of Directors

S. K. Hazra Managing DirectorFor C. C. Chokshi & Co.Chartered Accountants

V. B. Gangar

D. J. Khimasia

R. J. Karavadia

K. S. Nagpal}R. Laxminarayan Jignasha Shah

Partner Company Secretary Directors

Place : Mumbai Place : MumbaiDated : 28th May, 2007 Dated : 28th May, 2007


27

Profit and Loss Account for the year ended 31st March, 2007

ScheduleRupeesin lacs

CurrentYear

Rupeesin lacs

PreviousYear

Rupeesin lacs

INCOME Operating Revenue Sales (Net) 18,320.03 9,597.58 Service Revenue 5,714.83 5,852.91

24,034.86 15,450.49 Other Income 12 338.69 437.54

TOTAL 24,373.55 15,888.03

EXPENDITURE Material Costs 13 16,920.49 8,454.76 Manufacturing and Operating Expenses 14 1,901.05 1,532.93 Employment Costs 15 842.72 729.05 Administrative, Selling & General Expenses 16 1,380.45 1,151.56 Interest and Finance Charges 17 172.48 261.06 Depreciation 380.77 372.79

TOTAL 21,597.96 12,502.15 Profit before Tax and Extra Ordinary item 2,775.59 3,385.88 Gain on disposal of fixed assets (net) (Discontinued operation) — 196.74 Profit before Tax 2,775.59 3,582.62 Provision for Taxation: Current Tax 405.00 500.00 (including Wealth tax Rs. 0.73 lacs, Previous Year Rs. 0.51 lacs) Fringe Benefit Tax 20.00 27.00 Deferred Tax 31.00 35.75

456.00 562.75 (Excess) Provision for tax for earlier years written back (39.70) — Profit after Tax 2,359.29 3,019.87 Balance in Profit and Loss Account Brought Forward 6,562.29 4,284.86 Amount available for appropriation 8,921.58 7,304.73

APPROPRIATIONS Transfer (from) Debenture Redemption Reserve (25.00) (25.00) (Excess) Proposed Dividend of previous year written back (0.66) (0.36) Transferred to General Reserve 235.93 302.00 Proposed Dividend 407.66 408.51 Corporate Dividend Tax thereon 69.28 57.29 Balance Carried to Balance Sheet 8,234.37 6,562.29

TOTAL 8,921.58 7,304.73

Basic & Diluted Earnings per Equity Share Before Extra Ordinary item 14.44 17.28 After Extra Ordinary item 14.44 18.48

Significant Accounting Policies and Notes on accounts

18

Schedules 1 to 18 annexed hereto form part of these accounts



V. B. Gangar

D. J. Khimasia

R. J. Karavadia





28

Cash Flow Statement for the year ended 31st March, 2007

Rupeesin lacs

CurrentYear

Rupeesin lacs

PreviousYear

Rupeesin lacs

A. Cash Flow from Operating Activities: Profit Before Tax 2,775.59 3,582.62 Adjustments for: Depreciation 380.77 372.79 Interest Expenses (Net) 172.48 261.06 Dividend Income (53.36) (77.79) Excess Provision written back — (3.21) Diminution in value of Current Investments 4.11 — Provision for Diminution written back (1.62) (3.78) Sundry Balances written back (net) (8.34) (23.14) (Profit)/Loss on sale of Fixed Assets (5.89) 5.73 (Profit) on sale of Long Term Investments (11.17) (143.15) (Profit) on sale of Current Investments (71.16) (33.59) Gain on disposal of fixed assets

(Discontinued operation) — (196.74) 405.81 158.18

Operating Profit Before Working Capital Changes 3,181.40 3,740.80 (Increase) in Trade and Other Receivables (893.19) (1,017.48) Decrease/(Increase) in Inventories 124.79 (333.00) Increase in Trade and Other Payables 1,203.00 331.85 Increase in Leave Encashment 6.03 3.33 Increase/(Decrease) in Gratuity 4.50 (3.50)

445.13 (1,018.80)

Cash Generated from Operations 3,626.53 2,722.00 Direct Taxes Paid (436.42) (642.15)

Net Cash Flow from Operating Activities A 3,190.11 2,079.85

B. Cash Flow from Investing Activities: Purchase of Fixed Assets (437.78) (464.63) Sale of Fixed Assets 127.76 4.14 Purchase of Long Term Investments (1,345.98) — Sale of Long Term Investments 21.25 975.34 Sale of Current Investments 20,126.09 15,299.33 Purchase of Current Investments (18,621.49) (16,573.88) (excluding reinvestment of dividend Rs. 48.31 lacs;

Previous year Rs. 77.47 lacs) Loan to a Company — (461.71) Loan to Subsidiaries (2,771.55) — Advance for purchase of shares — (68.75) Deposit in Escrow account for purchase of shares 25.00 (25.00) Interest Received (Net) 268.50 64.28 Dividend Received (excl. reinvestment of dividend

Rs. 48.31 lacs; Previous Year Rs. 77.47 lacs) 0.50 0.32

Cash flow before Extra Ordinary item (2,607.70) (1,250.56) Sale of Fixed Assets of Discontinued Operation — 202.99

Net Cash used in Investing Activities B (2,607.70) (1,047.57)


29



V. B. Gangar

D. J. Khimasia

R. J. Karavadia




Rupeesin lacs

CurrentYear

Rupeesin lacs

PreviousYear

Rupeesin lacs

C. Cash Flow from Financing Activities: Increase/(Decrease) in Term and Other Borrowings 825.19 (419.60) Receipt of Calls in Arrears on Equity Shares

(including Share Premium) 0.05 10.56 Dividend Paid (including tax on Distributed Profit) (458.24) (222.05) Interest Paid (442.44) (330.85)

Net Cash from Financing Activities C (75.44) (961.94)

Net Increase in Cash and Cash Equivalents A+B+C 506.97 70.34 Cash and Cash Equivalents as at the end of the year: — Cash & Balances in Current Accounts with Banks 572.89 100.85 — Deposits with Banks and Interest Accrued thereon 1,284.96 1,250.03

1,857.85 1,350.88 Less: Cash and Cash Equivalents as at the

beginning of the year 1,350.88 1,280.54

Net Increase in Cash and Cash Equivalents 506.97 70.34

Note: (1) Cash and Cash Equivalents do not include Fixed Deposits with Banks as Margin Money and as Escrow.

(2) Figures in bracket denote outflow of cash.

(3) The above Cash Flow Statement has been prepared under the “Indirect Method” set out in Accounting Standard (AS – 3) “Cash Flow Statements” issued by the Institute of Chartered Accountants of India.


30

Schedules 1 to 18 Forming Part of Balance Sheet and Profit & Loss Account

Rupeesin lacs


Rupeesin lacs


Rupeesin lacs

SCHEDULE 1: SHARE CAPITAL

Authorised:

4,90,00,000 Equity Shares of Rs. 10 each 4,900.00 4,900.00 1,00,000 13.5% Cumulative Redeemable

Preference Shares of Rs. 100 each 100.00 100.00 5,000.00 5,000.00

Issued:

1,63,40,584 Equity Shares of Rs. 10 each 1,634.06 1,634.06

Subscribed and Paid up:

1,63,40,584 Equity Shares of Rs. 10 each fully called up 1,634.06 1,634.06 Less: Calls/allotment monies unpaid 3.43 3.44 TOTAL 1,630.63 1,630.62

Notes:

Of the above Shares:

1. 20,000 Equity Shares of Rs. 10 each fully paid up allotted in earlier year have been issued to two non resident companies against their deposits. The said deposits were utilised towards import of capital goods.

2. 8,20,000 Equity Shares of Rs. 10 each were allotted in earlier years as fully paid up by way of Bonus Shares by capitalisation of General Reserve.3. 74,900 Equity Shares of Rs. 10 each were allotted on 11th March, 1981 as fully paid up without payment being received in cash pursuant to the

scheme of amalgamation sanctioned by order of the High Court of Gujarat dated 16th December, 1980.4. 2,81,000 Equity Warrants have been converted into Equity Shares during the year 1995-96.5. 11,83,400 Equity Shares of Rs. 10 each have been allotted as fully paid up and issued to Shareholders of erstwhile Amit Alcohol and Carbon

Dioxide Ltd. on amalgamation without payment being received in cash pursuant to the scheme of amalgamation sanctioned by order of the High Court of Gujarat dated 2nd April, 1997.

Rupees in lacs

As at 31st March, 2007

Rupees in lacs


Rupees in lacs

SCHEDULE 2: RESERVES AND SURPLUS

Capital Reserve As per Last Balance Sheet 53.99 53.99 Securities Premium Account As per Last Balance Sheet 1,363.51 1,354.79 Add: Received during the year 0.04 8.72

1,363.55 1,363.51 Note: Securities Premium on Call/Allotment Monies

Unpaid Rs. 7.68 lacs (Previous Year Rs. 7.72 lacs) Debenture Redemption Reserve: As Per Last Balance Sheet 25.00 50.00 Less: Transfered to Profit and Loss Account 25.00 25.00

— 25.00 General Reserve As Per Last Balance Sheet 335.00 33.00 Add: Transferred from Profit and Loss Account 235.93 302.00

570.93 335.00 Balance in Profit and Loss Account 8,234.37 6,562.29

TOTAL 10,222.84 8,339.79


31

Schedules (Contd.)


Rupees in lacs


Rupees in lacs

SCHEDULE 3: SECURED LOANS

1. Debentures

3,00,000 13 % Non-Convertible privately placed Debentures of Rs. 100 each (Rs. 100 redeemed Previous Year Rs. 66.66) secured by mortgage of specific immovable properties of the Company situated at Trombay ranking paripassu with Financial Institutions/Bank mentioned in 2(A)(i) and 2(B)(i) below redeemed during the year.

— 100.00

2. Term Loans

(A) From Financial Institutions:

(i) Secured by mortgage of immovable properties of the Company situated at Trombay and Vapi ranking paripassu and hypothecation of movable properties of the Company; subject to prior charge in favour of bankers mentioned in 3 below.

1,004.79 1,577.78

(ii) Secured by mortgage of specific immovable office property, furniture & fixtures therein, situated at Mumbai.

188.48 244.94

(B) From Bank:

(i) Secured by mortgage of immovable properties of the Company situated at Trombay and Vapi ranking paripassu and hypothecation of movable properties of the Company; subject to prior charge in favour of bankers mentioned in 3 below.

1,700.00 —

(ii) Secured by hypothecation of specific Vehicle (Due within one year Rs. 6.55 lacs; Previous Year Rs. 16.49 lacs)

6.70 23.19

3. Cash Credit and other loans from banks — 1.77

Secured by charge on stores and spares, packing materials, book debts and movable properties of the Company and further secured by second charge on the immovable properties of the Company situated at Trombay and Vapi ranking paripassu.

TOTAL 2,899.97 1,947.68

SCHEDULE 4: UNSECURED LOANS

Fixed Deposits 569.60 696.70 (Due within one year Rs. 299.40 lacs;

Previous Year Rs. 263.90 lacs)TOTAL 569.60 696.70


32

Sche

dule

s (C

ontd

.)SC

HE

DU

LE

5:

FIX

ED

ASSE

TS

(R

up

ees

in la

cs)

G R

O S

S

B L

O C

KD

E P

R E

C I

A T

I O

NIM

PAIR

ME

NT

N E

T

B L

O C

K

As

at1st

Ap

ril,

2006

Addi-

tions

Ded

uc-

tio

ns

As

at31st

Mar

ch,

2007

As

at1

st A

pri

l,2

00

6

For

the

year

Ded

uc-

tio

ns

As

at31st

Mar

ch,

2007

As

at31st

Mar

ch,

2007

As

at31st

Mar

ch,

2007

As

at31st

Mar

ch,

2006

Tan

gib

le A

ssets

1.

Free

ho

ld L

and

393.1

6

32.6

6

—

425.8

2

—

—

—

—

—

425.8

2

393.1

6

2.

Leas

eho

ld L

and

1

74.3

1

—

17

4.3

1

—

54

.67

—

5

4.6

7

—

—

—

119.6

4

3.

Bu

ildin

gs

817.7

0

235.6

0

35

.00

1

,018.3

0

80

.37

1

2.6

5

35

.00

5

8.0

2

—

960.2

8

737.3

3

4.

Plan

t An

d M

ach

iner

y 6

,910.4

5

188.5

2

—

7,0

98.9

7

1,8

42

.98

3

28

.02

—

2

,171.0

0

—

4,9

27.9

7

5,0

67.4

7

5.

Furn

itu

re A

nd

Fix

ture

s 6

8.7

5

2.3

3

—

71.0

8

14

.01

4

.33

—

1

8.3

4

—

52.7

4

54.7

4

6.

Offic

e E

qu

ipm

ents

181.4

0

24.9

7

4.4

5

201.9

2

10

6.9

7

15

.58

2

.22

1

20.3

3

—

81.5

9

74.4

3

7.

Veh

icle

s 1

69.6

2

23.9

2

—

193.5

4

52

.20

1

7.6

3

—

69.8

3

—

123.7

1

117.4

2

Inta

ngib

leIn

tan

gib

le A

sset

s

— S

oft

war

e* 2

1.6

3

4.5

2

—

26.1

5

13

.74

2

.56

—

1

6.3

0

—

9.8

5

7.8

9

To

tal

8,7

37.0

2

512.5

2

213.7

6

9,0

35.7

8

2,1

64.9

4

380.7

7

91.8

9

2,4

53.8

2

—

6,5

81.9

6

6,5

72.0

8

Prev

iou

s Ye

ar 8

,419.6

0

376.4

9

59

.07

8

,73

7.0

2

1,7

57

.81

3

72

.79

2

8.9

5

2,1

01.6

5

63.2

9

6,5

72.0

8

Cap

ital

Wo

rk-i

n-P

rog

ress

13.4

0

88.1

4

*O

ther

th

an in

tern

ally

gen

erat

edTo

tal

6595.3

6

6660.2

2

Note

s:(1

) G

ross

Blo

ck is

at

cost

.(2

) B

uild

ing

s in

clude

Rs.

5.5

8 la

cs fo

r p

rem

ises

in C

o-o

per

ativ

e S

oci

ety

agai

nst

whic

h t

he

shar

es o

f th

e fa

ce v

alue

of R

s. 5

00 a

re h

eld u

nder

th

e b

ye-l

aws

of th

e so

ciet

y.(3

) G

ross

Blo

ck o

f as

sets

incl

ud

es F

reeh

old

Lan

d a

t Tr

om

bay

of th

e va

lue

of R

s. 9

6.8

7 la

cs (

Prev

ious

Year

Rs.

96.8

7 la

cs)

giv

en o

n le

ase.

(4)

The

above

incl

udes

ass

ets

hel

d fo

r d

isp

osa

l in

a p

rio

r ye

ar a

s g

iven

bel

ow

.(R

up

ees

in la

cs)

G R

O S

S

B L

O C

KD

E P

R E

C I

A T

I O

NIM

PAIR

ME

NT

N E

T

B L

O C

K

Ass

ets

hel

d fo

r

dis

po

sal:

At C

ost

as a

t1st

Ap

ril,

2006

Ded

uc-

tions

As

at31st

Mar

ch,

2007

As

at1

st A

pri

l,2

00

6

For

the

year

Ded

uc-

tio

ns

As

at31st

Mar

ch,

2007

As

at31st

Mar

ch,

2007

As

at31st

Mar

ch,

2007

As

at31st

Mar

ch,

2006

A.

1.

Leas

eho

ld L

and

174.3

1

174.3

1

—

54

.67

—

5

4.6

7

—

—

—

119.6

4

2.

Bu

ildin

g 3

5.0

0

35.0

0

—

35

.00

—

3

5.0

0

—

—

—

—

209.3

1

209.3

1

—

89

.67

—

8

9.6

7

—

—

—

119.6

4

Pr

evio

us

Year

2

09.3

1

—

20

9.3

1

26

.38

—

—

2

6.3

8

63.2

9

119.6

4—

B.

Ass

ets

of

Dis

con

tin

ued

O

per

atio

n:

1

. Le

aseh

old

Lan

d

—

—

—

—

—

—

—

—

—

—

2

. B

uild

ing

—

—

—

—

—

—

—

—

—

—

3

. Pl

ant

An

d

Mac

hin

ery

—

—

—

—

—

—

—

—

—

—

4

. Fu

rnitu

re A

nd

Fixt

ure

s —

—

—

—

—

—

—

—

—

—

5

. O

ffic

e E

qu

ipm

ents

—

—

—

—

—

—

—

Tota

l —

—

—

—

—

—

—

—

—

—

Pr

evio

us

Year

4

1.4

7

41.4

7

—

21

.22

—

2

1.2

2

—

—

— —


33

Schedules (Contd.)


Rupeesin lacs


Rupees in lacs

SCHEDULE 6: INVESTMENTS (AT COST)A. Long Term Investments: 1. Investment in Government Securities (Unquoted) Government Securities of the Face Value of Rs. 0.38 lacs

(Deposited with Government authorities) 0.38 0.38 2. Investment in Subsidiaries Equity Shares of Sea Lord Containers Limited (Quoted, Not traded) 9,37,500 (Previous Year Rs. Nil) shares of Rs. 10 each fully paid up. 96.81 — Equity Shares of Konkan Storage Systems (Kochi)

Private Limited (Unquoted) 1,00,000 (Previous Year Nil) shares of Rs. 10 each fully paid up. 10.00 —

Preference Shares of Sea Lord Containers Limited (Unquoted) 12,00,000 (Previous Year Nil) shares of Rs. 100 each fully paid up. 1,239.17 — 3. Non-Trade Investments (Quoted); Fully paid up Equity Shares of Lloyds Finance Ltd. Nil (Previous Year 4,000) Shares of Rs. 10 each — 1.65 Equity Shares of Bank of Baroda Nil (Previous Year 10,000) Shares of Rs. 10 each — 8.50

TOTAL 1,346.36 10.53

Less: Provision for diminution in value of investments — 1.62 TOTAL (A) 1,346.36 8.91

B. Current Investments: Non-Trade Investments (Unquoted): In Units of Mutual Fund Nil (Previous Year 116546) Units of HDFC Cash Management Fund

Saving Plan of Rs. 10 each – DD — 12.40 Nil (Previous Year 1476) Units of LICMF

Liquid Fund of Rs. 10 each – Dividend Reinvestment Plan — 0.16 Nil (Previous Year 18534) Units of Prudential ICICI

Floating Rate Plan C – Daily Dividend Reinvestment Plan — 1.85 Nil (Previous Year 28452) Units of CanLiquid Fund –

Institutional Daily Dividend Plan — 2.86 Nil (Previous Year 20678) Units of Reliance Liquid Fund –

Treasury Plan -1 year option - Daily Dividend Plan — 3.16 Nil (Previous Year 12662) Units of Reliance Liquid Cash Plan –

Daily Dividend Reinvestment Plan — 1.41 Nil (Previous Year 60836) Units of SBI Magnum Instl. Income

Fund Savings – Dividend Reinvestment Plan — 6.10 Nil (Previous Year 6900) Units of Sundaram Money Fund – Dividend

Reinvestment Plan — 0.70 Nil (Previous Year 633016) Units of HDFC Income Fund – Growth Plan — 100.00 Nil (Previous Year 425669) Units of Templeton India Income Builder

Account Plan A – Growth Plan — 100.00 Nil (Previous Year 182906) Units of Prudential ICICI Income Plan –

Growth Plan — 35.00 Nil (Previous Year 305619) Units of Prudential ICICI Blended Plan B –

Dividend Plan — 30.56 Nil (Previous Year 1536714) Units of Prudential ICICI Blended Plan B –

Growth Plan — 155.00 Nil (Previous Year 537432) Units of SBI Magnum Income Fund – Growth Plan — 100.00 Nil (Previous Year 6072) Units of Templeton India Short Term Income

– Growth Plan — 75.00 Nil (Previous Year 518427) Units of Fidelity Equity Fund – Growth Plan — 61.02


34

Schedules (Contd.)


Rupeesin lacs


Rupees in lacs

SCHEDULE 6: INVESTMENTS (AT COST) (Contd.)B. Current Investments: (Contd.) Nil (Previous Year 398280) Units of Prudential ICICI Discovery Fund –

Growth Plan — 67.73 Nil (Previous Year 29777) Units of Franklin India Prima – Growth Plan — 40.00 Nil (Previous Year 46941) Units of Reliance Growth Fund – Growth Plan — 70.23 100000 (Previous Year 71181) Units of Sundaram Select Mid Cap –

Growth Plan 10.76 31.83 Nil (Previous Year 41451) Units of HDFC Capital Builder – Growth Plan — 16.92 Nil (Previous Year 131844) Units of SBI Magnum Global Fund – Growth Plan — 29.56 Nil (Previous Year 500000) Units of SBI Magnum Multicap – Growth Plan — 50.00 Nil (Previous Year 49980) Units of Franklin India Prima – Dividend Plan — 25.00 250000 (Previous Year 250000) Units of Franklin India Smaller Companies

Fund – Dividend 25.00 25.00 Nil (Previous Year 76060) Units of Fidelity Equity fund – Dividend Plan — 11.33 Nil (Previous Year 46017) Units of HDFC Capital Builder – Dividend Plan — 11.87 Nil (Previous Year 44248) Units of Reliance Growth Fund – Dividend Plan — 22.00 200000 (Previous Year 200000) Units of HDFC Long Term Equity Fund –

Growth Plan 20.00 20.00 250000 (Previous Year 250000) Units of Prudential ICICI Fusion fund –

Dividend Plan 25.00 25.00 Nil (Previous Year 500000) Units of Reliance Equity fund – Growth Plan — 50.00 Nil (Previous Year 1011916) Units of Reliance FMP Quarterly Plan III

Series II – Dividend Option — 101.19 Nil (Previous Year 2026960) Units of Prudential ICICI Quarterly FMP — 202.70 Nil (Previous Year 2014608) Units of UTI Fixed Maturity Plan — 201.46 Nil (Previous Year 38) Units of UTI Liquid Fund Cash Plan – Dividend Plan — 0.39 Nil (Previous Year 28) Units of Templeton India Treasury Management –

Regular Plan — 0.42 72889 (Previous Year Nil) Sundaram Rural India Fund 10.66 — 195503 (Previous Year Nil) Templeton India Equity Income Fund 20.00 — 97800 (Previous Year Nil) Fidility India Special Situations Fund 10.00 — 31056 (Previous Year Nil) Franklin India Flexicap Fund 5.00 — 43339 (Previous Year Nil) HDFC Equity Fund 16.22 — 58166 (Previous Year Nil) Prudential ICICI Emerging Star fund 11.28 — 31760 (Previous Year Nil) Reliance Equity Opportunity fund 5.00 — 1000000 (Previous Year Nil) Prudential ICICI Equity & Derivative Fund 100.00 — 150000 (Previous Year Nil) Reliance Long Term Equity fund 14.81 — 301074 (Previous Year 7265) Units of Bank of Baroda Liquid Fund –

Daily Dividend 30.23 0.73 TOTAL (B) 303.96 1,688.58 TOTAL (A+B) 1,650.32 1,697.49

Cost Market ValueAs at 31st

March, 2007

(Rs. in Lacs)

As at 31st

March, 2006

(Rs. in Lacs)

As at 31st

March, 2007

(Rs. in Lacs)

As at 31st

March, 2006

(Rs. in Lacs) Aggregate value of Quoted Investments 96.81 8.53 — 23.03 Aggregate value of Unquoted Investments 1553.51 1688.96 — —

TOTAL 1650.32 1697.49 — 23.03


35

Schedules (Contd.)


Rupeesin lacs


Rupees in lacs

SCHEDULE 6: INVESTMENTS (AT COST) (Contd.)

B. Current Investments: (Contd.)

Movements during the Year

Purchased and sold Face ValueRs.

Nos. Cost (Rs. in lacs)


LIC Liquid Fund – Dividend Plan 10 99,322,413 10,903.29 27,984,944 3,057.32

Prudential ICICI Liquid Fund – Daily Dividend 10 — — 13,882,233 1,645.23

Prudential ICICI Liquid Fund – Weekly Dividend 10 — — 718,903 85.12

Prudential ICICI Floating Rate Plan C – Daily Dividend 10 13,422,609 1,342.53 12,477,851 1,248.03

Prudential ICICI Short Term Forthightly Dividend 10 — — 934,399 100.11

Prudential ICICI Income Plan Growth 10 — — — —

Prudential ICICI Instl Liquid Plan – Super Instl Dividend 10 5,007,512 500.75 — —

Prudential ICICI Sweep Cash Option – Daily Dividend 10 7,121,379 712.14 — —

Prudential ICICI Blended Plan B Dividend 10 9,945 0.99 — —

Prudential ICICI Blended Plan B Growth 10 — — — —

Prudential ICICI Discovery Fund Growth 10 — — — —

Prudential ICICI FMP Series 32 – Three Months Plan 10 507,095 50.71 — —

Prudential ICICI FMP Yearly Series XXV Dividend 10 6,466 0.65 — —

Prudential ICICI Income Plan Growth 10 — — 324,235 65.00

Prudential ICICI Discovery Fund Growth 10 — — 72,119 16.03

Templeton India TMA – Weekly Dividend 1000 — — 5,646 70.26

Templeton India TMA – Daily Dividend 1000 11,261 170.31 53,011 801.56

Templeton India Income Builder Account Plan A 10 — — — —

Templeton STP – Growth 10 — — 1,972 25.00

CanLiquid Fund – Instl – Daily Dividend 10 3,000,924 301.32 6,224,480 625.00

DWS Money Plus Fund Regular Plan Weekly Dividend 10 1,017,179 102.27 — —

ING Vysya Liquid Plan – Insl Daily Div 10 6,716,559 672.35 — —

Kotak Liquid Regular Weekly Dividend 10 1,308,751 131.17 — —

Birla Cash Plus Instl Prem. Daily Dividend 10 — — 5,010,043 501.98

Birla Cash Plus Instl. Daily dividend 10 — — 6,808,754 735.00

JM High Liquidity fund Daily dividend Plan 10 — — 2,022,331 210.93

JM Equity & Derivative Fund 10 — — 297,241 30.37

Reliance Liquid fund Inst. Treasury Plan – Institutional option DD 10 1,579,319 241.34 3,174,479 485.00


36

Schedules (Contd.)


Rupeesin lacs


Rupees in lacs

SCHEDULE 6: INVESTMENTS (AT COST) (Contd.)

B. Current Investments: (Contd.)

Movements during the Year

Purchased and sold Face ValueRs.



Reliance Liquid Plan Weekly dividend 10 — — 679,099 70.23

Reliance Liquid fund Cash Plan Daily Dividend 10 1,797,531 200.26 2,437,419 371.28

Reliance Liquid Cash Plan Daily Dividend Option 10 1,797,406 200.25 4,791,252 533.79

Reliance Equity Fund Dividend Plan 10 — — — —

Reliance Growth fund Growth 10 — — 7,221 15.02

Reliance Growth fund Dividend 10 — — — —

Reliance QFMP Series II Dividend 10 — — — —

Reliance FMF Monthly Plan 10 — — 6,028,214 602.82

Reliance FMF Quarterly Plan 10 — — 1,000,000 100.00

SBI Magnum Instl Income Fund Savings Dividend 10 1,914,822 192.10 5,013,705 503.00

SBI Magnum Income fund – G 10 — — — —

SBI Magnum Insta Cash fund – DD 10 1,195,680 200.28 — —

SBI Magnum Global fund 10 — — 46,554 14.38

HDFC Cash Management Savings Plus Plan dividend 10 — — 7,051,434 706.54

HDFC CMF Call Plan Daily Dividend 10 8,289,332 864.30 — —

HDFC CMF Savings Plan Daily Dividend Option 10 11,874,313 1,263.00 13,804,287 1,468.28

HDFC Capital Builder Growth 10 — — 56,585 30.58

HDFC Capital Builder Dividend 10 — — — —

HDFC Equity Fund Dividend 10 — — — —

HDFC Income Fund Growth 10 — — — —

Sundaram Money Fund – Dividend Reinvest Daily 10 454,390 45.87 3,235,512 326.63

Sundaram Select Mid Cap Growth 10 — — 18,262 11.67

Fidelity Equity fund Growth 10 — — 161,145 25.05

Fidelity Equity fund Dividend 10 — — — —

Franklin India Prima Dividend 10 — — 49,980 29.42

Franklin India Prima Growth 10 — — — —

Principal Income Fund – STP – Inst Plan – Dividend 10 — — 933,819 102.14

UTI FMP Series II 10 11,987 1.20 — —

UTI Money Market Fund DD 10 1,167,777 203.57 — —

Bank of Baroda Liquid Fund 10 654,995 65.73 3,499,175 350.00


37

Schedules (Contd.)

Rupees in lacs


Rupees in lacs


Rupees in lacs

SCHEDULE 7: INVENTORIES(At cost or net realisable value whichever is lower) 1. Stores and Spare Parts 296.48 219.96 2. Stock–in–Trade: Finished Goods — Merchanting Goods 349.12 550.43

TOTAL 645.60 770.39

SCHEDULE 8: SUNDRY DEBTORS (UNSECURED) Debts Outstanding for a period exceeding six months – Considered Good 166.47 80.12 Considered Doubtful 20.00 —

186.47 80.12 Less: Provision for Doubtful Debts 20.00 —

166.47 80.12 Other Debts 2,313.51 1,432.71

TOTAL 2,479.98 1,512.83

SCHEDULE 9: CASH AND BANK BALANCES Balances With Scheduled Banks: — In Current Account 572.89 100.85 — In Deposit Account 1,627.49 1,390.93 [Includes Rs. 342.53 lacs, (Previous Year Rs. 115.91 lacs)

in Margin Money Account] [Includes Interest accrued Rs. 10.08 lacs, (Previous Year Rs. 7.49 lacs)] [includes Rs. Nil Previous Year Rs. 25 lacs in Escrow account]

TOTAL 2,200.38 1,491.78

SCHEDULE 10: LOANS AND ADVANCES (UNSECURED AND CONSIDERED GOOD) Loan to a Company — 461.71 Loan to Subsidiaries 3,233.26 — Advance for purchase of shares — 68.75 Advances Recoverable in cash or in kind or for

value to be received 1,481.42 1,721.79 Deposits with Government Authorities and Others 1,134.22 1,125.68 Advance Payment of Taxes (Net of Provision of tax) 225.08 173.96

TOTAL 6,073.98 3,551.89

SCHEDULE 11: CURRENT LIABILITIES AND PROVISIONS Current Liabilities: Sundry Creditors 1,718.44 1,124.53 (Total outstanding dues of Small Scale Industrial Undertakings

Rs. Nil; Previous Year Rs. Nil) Deposit from Dealers 521.50 41.00 Unpaid Dividend* 25.06 18.16 Unpaid Matured Deposits* 13.95 13.45 Interest Accrued on Matured Deposits* 1.68 1.08 Interest accrued but not due on loans 16.27 17.73 Other Liabilities 738.78 619.63

3,035.68 1,835.58 Provisions: Proposed Dividend 407.66 408.51 Corporate Dividend Tax 69.28 57.29 Leave Encashment 28.69 22.66 Gratuity 24.64 20.14

530.27 508.60 TOTAL 3,565.95 2,344.18

* These figures do not include any amounts, due and outstanding, to be credited to Investor Education and Protection Fund.


38

Schedules (Contd.)

Current Year

Rupees in lacs

Previous Year

Rupees in lacs

SCHEDULE 12: OTHER INCOME

Lease Rent 113.05 107.65

Dividend on Long Term Investments (non–trade) 0.50 0.32

Dividend on Current Investments (non–trade) 52.86 77.47

Excess Provision written back — 3.21

Provision for Diminution in value of Long Term Investments written back 1.62 3.78

Sundry Balances written back (net) 8.34 23.14

Profit on sale of Long Term Investments 11.17 143.15

Profit on sale of Current Investments 71.16 33.59

Miscellaneous Receipts 74.10 45.23

Profit (Net) on Sale of Fixed Assets 5.89 —

TOTAL 338.69 437.54

SCHEDULE 13: MATERIAL COSTS

Merchanting Goods:

Opening Stock 550.43 297.50

Add : Purchases 16,719.18 8,707.69

Less : Closing Stock 349.12 550.43

TOTAL 16,920.49 8,454.76

SCHEDULE 14: MANUFACTURING AND OPERATING EXPENSES

Stores and Spare parts consumed 167.03 191.57

Power and Fuel 28.73 33.85

Repairs to Machinery 26.78 70.42

Lease Rentals 144.00 152.90

Tankage Charges 1,128.66 692.75

Way Leave Fees 339.67 329.17

Water Charges 45.31 37.23

Packing Materials and Other Charges 20.87 25.04

TOTAL 1,901.05 1,532.93

SCHEDULE 15: EMPLOYMENT COSTS

Salaries, Wages, Bonus and Gratuity 760.51 657.37

Contribution to Provident Fund and Other Funds 55.05 42.98

Employees’ Welfare Expenses 27.16 28.70

TOTAL 842.72 729.05


39

Schedules (Contd.)

Rupees in lacs

Current Year

Rupees in lacs

Previous Year

Rupees in lacs

SCHEDULE 16: ADMINISTRATIVE, SELLING AND GENERAL EXPENSES

Repairs

Buildings 3.16 4.98

Others 56.14 44.04

59.30 49.02

Rent 48.76 47.69

Rates and Taxes 95.32 91.31

Insurance 96.61 76.80

Commission on Sales 257.10 226.72

Printing and Stationery 22.09 18.35

Communication Expenses 42.46 40.75

Travelling, Conveyance and Vehicle Expenses 151.54 99.70

Advertisement 72.58 21.51

Legal and Professional charges 311.62 290.66

Directors’ Sitting Fees 3.25 3.49

Donations 99.00 100.00

Provision for Doubtful Debts 20.00 —

Sundry Debit Balance written off 3.07 —

Diminution in value of Current Investments 4.11 —

Loss on Discarding/Sale of Assets (Net) — 5.73

Miscellaneous Expenses (including Security services, Books, Subscription, Selling expenses etc.) 93.64 79.83

TOTAL 1,380.45 1,151.56

SCHEDULE 17: INTEREST AND FINANCE CHARGES

On Debentures 2.42 15.42

On Fixed Loans 231.96 250.56

On Cash Credit Accounts etc. 87.98 0.61

Other Interest 44.44 2.61

Bank/Finance Charges 74.18 56.14

TOTAL 440.98 325.34

Less: Interest on loans and advances, deposit with banks etc. (including tax deducted at source Rs. 9.68 lacs; Previous Year Rs. 7.17 lacs) (includes interest on income tax refund Rs. 3.21 lacs; Previous Year Rs. 23.52 lacs)

268.50 64.28

TOTAL 172.48 261.06

Schedules (Contd.)


40

SCHEDULE 18: SIGNIFICANT ACCOUNTING POLICIES AND NOTES FORMING PART OF BALANCE SHEET AND PROFIT AND LOSS ACCOUNT

A. Significant Accounting Policies

A.1. Basis of preparation of Financial Statements The financialstatementshavebeenpreparedunder thehistoricalcostconvention inaccordancewith the

generallyacceptedaccountingprinciplesinIndiaandtheprovisionsoftheCompaniesAct,1956.

A.2. Use of Estimates The preparation of financial statements requires estimates and assumptions to be made that affect the

reportedamountofassetsandliabilitiesonthedateofthefinancialstatementsandthereportedamountofrevenuesandexpensesduringthereportingperiod.Differencebetweentheactualresultsandestimatesarerecognisedintheperiodinwhichtheresultsareknown/materialise.

A.3. Fixed Assets FixedAssetsarecarriedatcostofacquisitionorconstruction.Theyarestatedathistoricalcosts.

A.4. Investments LongTermInvestmentsareshownatcost.However,whenthereisadecline,otherthantemporary,inthe

valueofalongterminvestment,thecarryingamountisreducedtorecognisethedecline.

CurrentInvestmentsarecarriedatlowerofcostandfairvalue,computedcategorywise.

A.5. Inventories Inventoriesare valuedat costorNetRealisableValuewhichever is less.Cost isdeterminedbyusing the

First In First Out formula. Cost comprises all costs of purchase, cost of conversion and cost incurred tobringinventoriestotheirpresentlocationandconditionotherthanthosesubsequentlyrecoverablebythecompanyfromtaxingauthorities.

A.6. Timing of Revenue Recognition In appropriate circumstances, Revenue (Income) is recognised when no significant uncertainty as to

measurabilityorcollectabilityexists.

A.7. Operating Revenue Salesturnoverfortheyearisnetoftradediscountsandincludessalesvalueofgoodsandotherrecoveries,

suchasinsurance,transportandpackingchargesbutexcludessalestax.

Servicerevenueisrecognizedontimeproportionbasisandexcludesservicetax.

A.8. Depreciation

(i) Depreciation on Fixed Assets is calculated on original cost of Fixed Assets on straight line methodunder Section 205(2) (b) of the Companies Act, 1956 at the rates and in the manner prescribed inScheduleXIVtotheCompaniesAct,1956.

(ii) Depreciationonadditionstofixedassetsduringtheyearhasbeenprovidedonpro-ratabasisfromthedate of such additions.Depreciationon assets sold, discardedor demolished hasbeenprovidedonpro-ratabasis.

(iii) LeaseholdLandhasbeenamortisedovertheperiodoftheleaseonstraightlinebasis.

A.9. Intangible Assets IntangibleAssetsarestatedatcostofacquisitionlessaccumulatedamortisation.Softwareisamortisedon

straightlinebasisoveraperiodofitsestimatedusefullife,howevernotexceeding5years.

A.10. Voluntary Retirement Compensationpaidtoemployeeswhohaveoptedforretirementunder theVoluntaryRetirementScheme

(VRS)oftheCompanyisdebitedtoProfitandLossAccountintheyearofpayment.

Schedules (Contd.)


41

A.11. Retirement Benefits Contribution to defined schemes such as Provident Fund, Family Pension Fund, Superannuation Fund

(inthecaseofeligibleemployees)andEmployees’State InsuranceSchemearechargedtotheProfitandLossAccountasincurred.GratuityliabilityfortheyearisfundedwithLifeInsuranceCorporationofIndiainrespectofofficersanddeterminedactuariallyasattheyearendinrespectofotheremployees.

A.12. Leave Encashment

TheliabilityforLeaveEncashmentonretirementoronterminationofservicesofemployeesofthecompanyisdeterminedbyactuarialvaluationandprovidedforasincurredintheyearinwhichservicesarerenderedbyemployees.

A.13. Foreign Currency Transactions

(a) TransactionsinForeignCurrenciesarerecordedattheoriginalrateofexchangeinforceatthetimeofoccurrenceoftransactions.

(b) Monetaryitemsdenominatedinforeigncurrenciesattheyearendaretranslatedattherelevantratesof exchange prevailing at the year end. The translation/settlement differences are recognised in theProfit&LossAccountexceptthoserelatingtoacquisitionof fixedassets fromoutsideIndia, inwhichcasesuchexchangedifferencearecapitalised.

A.14. Impairment of Assets

AnassetistreatedasimpairedwhenthecarryingcostofassetexceedsitsRecoverableAmount.RecoverableAmount is higher of an asset’sNet selling price or its Value in Use. Value in Use is the present value ofestimatedfuturecashflowsexpectedtoarisefromthecontinuinguseofanassetandfromitsdisposalattheendof itsuseful life.NetSellingPrice is theamountobtainable fromthesaleofanasset inanarmslengthtransactionbetweenknowledgeable,willingparties,lessthecostofdisposal.

AnimpairmentlossischargedtotheProfitandLossAccountintheyearinwhichanassetisidentifiedasimpaired.

A.15. Operating Lease Rentals

LeaseRentalexpensesareaccountedonstraightlinebasisovertheleaseterm.

A.16. Borrowing Cost

Borrowingcoststhatareattributabletotheacquisitionorconstructionofqualifyingassetsarecapitalisedaspartofthecostofsuchassets.Aqualifyingassetisonethatnecessarilytakessubstantialperiodoftimetogetreadyforintendeduse.Allotherborrowingcostsarechargedtorevenue.

A.17. Taxes on Income

Currenttaxisdeterminedastheamountoftaxpayableinrespectoftaxableincomefortheyear.

Deferredtaxfortheyearisrecognized,ontimingdifferences,beingthedifferencebetweentaxableincomeandaccountingincomethatoriginateinoneperiodandarecapableofreversalinoneormoresubsequentperiods.

ProvisionforFringeBenefitsTaxismadeinaccordancewithChapterXII-HoftheIncomeTaxAct,1961.

Deferredtaxassetsandliabilitiesaremeasuredusingthetaxratesandtaxlawsthathavebeenenactedorsubstantivelyenactedby theBalanceSheetdate.Deferred taxassetsare recognizedandcarried forwardonly if there is a reasonable certainty (virtual certainty in case of unabsorbed depreciation and businessloss)ofitsrealization.

A.18. Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is apresentobligationasaresultofpasteventsand it isprobable that therewillbeanoutflowofresources.Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neitherrecognizednordisclosedinthefinancialstatements.

Schedules (Contd.)


42

B. Notes on Balance Sheet and Profit and Loss AccountCurrent

Financial Year Rupees in lacs

PreviousFinancialYear

Rupeesinlacs

B.1. Contingent liabilities in respect of:-(a) BillsofExchangeDiscountedbutnotmatured(SinceRealised) — 4.70(b) ClaimsagainsttheCompanynotacknowledgedasdebts 12.00 12.00(c) IncomeTaxdemandsdisputedinappeal 19.35 26.00(d) Estimatedamountofcontractsremainingtobeexecuted

onCapitalAccountandnotprovidedfor(NetofAdvances) 93.68 31.91InrespectofitemsmentionedunderParagraphsbandcabove,tillthemattersarefinallydecided,thefinancialeffectcannotbeascertained.

B.2. GuaranteesgiventoBanksagainstrepaymentofloansadvancedfromtimetotimetoSeaLordContainersLtd.,aSubsidiaryoftheCompanytotheextentofRs. 45 crores(PreviousyearRs.Nil).Thebalanceofsuchloanoutstandingasat31stMarch,2007wasRs. 32 crores(PreviousYearRs.Nil)

B.3. Payments to Auditors for the yearAuditors’Remuneration&Expenses(includingServiceTax)(a) AsAuditors 7.53 5.16(b)ForTaxAudit 1.46 1.13(c) Asadviserorinanyothercapacityinrespectof: (i) TaxationMatters(Representationsetc.) 11.44 15.00 (ii) AnyotherManner(CertificationWork,LimitedReviewetc.) 4.49 7.41(d) ExpensesReimbursed 0.22 0.03

TOTAL 25.14 28.73

B.4. Major components of deferred tax are:Current

Financial Year Rupees in lacs


Rupeesinlacs

Deferred Tax Liability/(Asset)RelatedtoFixedAssets 777.79 751.79VoluntaryRetirementScheme (5.04) (14.04)ProvisionforDoubtfulDebts (6.80) —DisallowancesunderSection43B (9.32) (12.12)

Net Deferred Tax Liability 756.63 725.63

B.5. Advances recoverable in cash or in kind includes Rs. 1,184.57 lacs (Previous Year Rs. 1,540.67 lacs)prepaidtankagecharges.

B.6. (i) Managerial Remuneration Under Section 198 of the Companies Act, 1956, paid/payable to theManagingDirector:

Current Financial Year

Rupees in lacs


Rupeesinlacs

(1) Salary 29.67 25.47 (2) Commission 33.30 38.21 (3) Company’sCont.towardsP.F.andotherfunds 8.01 6.88 (4) Perquisitesincashorinkind 11.16 7.89

TOTAL 82.14 78.45

Note:Asemployeewisebreak-upofcontributiontoLICGroupGratuitySchemeisnotascertainable,thesamehasnotbeenincludedintheabovefigures.

Schedules (Contd.)


43

(ii) Computationofnetprofitundersection349oftheCompaniesAct,1956isasunder:


Rupees in lacs


Rupeesinlacs

ProfitbeforeTaxation 2,775.59 3,582.62

Add:

ManagerialRemuneration 82.14 78.45

DimunitioninvalueofCurrentInvestments 4.11 —

LossonsaleofFixedAssets — 5.73

Directors’SittingFees 3.25 3.49

Depreciationasperbooks 380.77 372.79

{A} 3,245.86 4,043.08

Less:

Depreciationaspersection350oftheCompaniesAct,1956andimpairmentloss 380.77 372.79

ProfitonsaleofLongTermInvestments 11.17 143.15

ProfitonsaleofCurrentInvestments 71.16 33.59

ProvisionforDiminutioninvalueofInvestmentswrittenback 1.62 —

Gainondisposaloffixedassets(Discontinuedoperation) — 196.74

ProfitonsaleofFixedAssets(Net) 5.89 —

{B} 470.61 746.27

{A}-{B} 2,775.25 3,296.81

ManagingDirector’sCommission:

[email protected]%ofabovefortheyearendedMarch31,2007

33.30 39.56

MaximumCommissionpayabletobelimitedtoanamountequalto150%ofsalary. 44.51 38.21

B.7. Segment Reporting – Basis of preparation

The Company has identified two reportable business segments (Primary Segments) viz. Liquid TerminalDivisionandGasTerminalDivision.

LiquidTerminalDivisionundertakesstorage&terminallingfacilityofOil&Chemicalproducts.

GasTerminalDivisionrelatestoimports,storage&distributionofPetroleumproductsviz.LPG,Propaneetc.

Segmentshavebeenidentifiedandreportedtakingintoaccount,thenatureofproductsandservices,thedifferingrisksandreturnsandtheinternalbusinessreportingsystems.

Theaccountingpoliciesadopted for thesegmentreportingare in linewith theaccountingpoliciesof thecompanywiththefollowingadditionalpoliciesforthesegmentreporting:

(a) Revenue and expenses have been identified to segment on the basis of their relationship to theoperatingactivitiesof thesegment.Revenueandexpenseswhich relate to theenterpriseasawholeand are not allocable to segment on a reasonable basis have been disclosed as “Other unallocableexpenditure(net)”.

(b) Segment assets and segment liabilities represent assets and liabilities in respective segments.It excludes investments, tax relatedassets andother assets and liabilitieswhich cannotbe allocatedto a segment on a reasonable basis and hence have been disclosed as “Other unallocable assets/liabilities”.

(c) The Company does not have material earnings emanating outside India. Hence, the company isconsideredtooperateinonlythedomesticsegment.

Schedules (Contd.)


44

InformationabouttheCompany’sbusinesssegments(PrimarySegments)isgivenbelow:

LiquidTerminalDivision

Rupeesinlacs

GasTerminalDivision

Rupeesinlacs

Total

Rupeesinlacs

SegmentRevenue 4,878.19 19,156.67 24,034.86 5,280.53 10,169.96 15,450.49

SegmentResults 2,667.78 998.29 3,666.07 3,123.16 1,059.14 4,182.30

Less: (1) Interest(net) 172.48 261.06

(2) Otherunallocableexpenditure(net) 718.00 535.36

ProfitbeforeTaxandExtraordinaryItem 2,775.59 3,385.88

Gainondisposaloffixedassets — 196.74

ProfitbeforeTax 2,775.59 3,582.62

Less:Taxation 416.30 562.75

ProfitafterTax 2,359.29 3,019.87

SegmentAssets 7,252.90 5,287.74 12,540.64 7,683.12 4,271.42 11,954.54

Otherunallocableassets 7,104.98 4,232.06

TotalAssets 19,645.62 16,186.60

SegmentLiabilities 428.30 2,316.93 2,745.23 610.43 1,071.69 1,682.12

Otherunallocableliabilities 5,046.92 4,534.07

TotalLiabilities 7,792.15 6,216.19

SegmentCapitalExpenditure 363.65 — 363.65 420.44 — 420.44

OtherunallocableCapitalExpenditure 74.13 44.19

TotalCapitalexpenditure 437.78 464.63

Depreciation 349.87 — 349.87 345.51 — 345.51

OtherunallocableDepreciation 30.90 27.28

TotalDepreciation 380.77 372.79

Note:Figuresinitalicsrepresentspreviousyear.

Schedules (Contd.)


45

B.8. Related Party Disclosures

As per the Accounting Standard 18, issued by the Institute of Chartered Accountants of India (ICAI), thedisclosureoftransactionswiththerelatedpartiesasdefinedintheAccountingStandardaregivenbelow:

(a) Listofrelatedpartieswithwhomtransactionshavetakenplaceandrelationships:

Sr.No. NameoftheRelatedParty Relationship

1 HindustanAegisLPGLimited AssociateCompany

2 SeaLordContainersLimited SubsidiaryCompany(w.e.f.19.06.2006)

3 KonkanStorageSystems(Kochi)PrivateLimited WhollyownedSubsidiaryCompany(w.e.f.26.03.2007)

4 Mr.S.K.Hazra KeyManagementPersonnel

5 Dr.(Mrs.)B.Hazra RelativeofKeyManagementPersonnel

(b) Transactionsduringtheyearwithrelatedparties:(Rs.inlacs)

Sr.No. Natureoftransaction

AssociateCompany

1

SubsidiaryCompany

2

SubsidiaryCompany

3

KeyManagement

Personnel

RelativeofKeyManagement

Personnel

(i) LeaseRentReceived 113.05(55.15)

(ii) ServiceRevenueReceived 231.43

(89.49)

(iii) TankagechargesPaid 975.11(280.84)

(iv) TradeDeposits 900.00(900.00)

(v) SundryDebtors 270.46(1.57)

(vi) PrepaidTankageCharges 1,184.57

(1,540.67)

(vii) Investments:Purchasedduringtheyear 1,335.98 10.00Balanceattheyearend 1,335.98 10.00

(viii) Loan 2,008.26 1,225.00

(ix) InterestReceived 147.98

(x) BusinessSupportChargesReceived 51.72

(xi) GuaranteesGiventoBank 4,500.00

(xii) Remuneration 82.14 (78.45)

(xiii) PaymentofRent 1.62 (1.47)

Note:Figuresinbracketsrepresentpreviousyear’samounts.

Schedules (Contd.)


46

B.9. AsrequiredbyAccountingStandard20onEarningperShareissuedbytheInstituteofCharteredAccountantsof India (ICAI), basic earning per share has been calculated by dividing net profit available for equityshareholdersbytheweightedaveragenumberofequitysharesoutstandingduringtheyearasperdetailsgivenbelow:


Rupees in lacs


Rupeesinlacs

NetProfitavailableforequityshareholders 2,359.29 3,019.87

Weightedaveragenumberofsharesusedincomputingearningperequityshare 1,63,40,584 1,63,40,584

Basic&Dilutedearningpershare(Rs.)(onnominalvalueofRs.10pershare)

—BeforeExtraOrdinaryitem 14.44 17.28

—AfterExtraOrdinaryitem 14.44 18.48

B.10. (i) InaccordancewiththeprovisionofSEBI(Substantialacquisitionofsharesandtakeovers)Regulation,1997 the Company acquired 9,37,500 fully paid up Equity Shares of Rs. 10 each representing 75%ofEquityShareCapital and12,00,000PreferenceSharesofRs.100eachofSealordContainersLtd.at par and has granted a loan of Rs. 2,008.26 lacs (Previous Year Rs. 461.71 lacs) for repaymentof loansandcreditorsandforexecutingaProjectforsettingupaBulkLiquidTerminal,whichisakinandgermanetotheBusinessoftheCompany.

(ii) Companyalsoacquiredduringtheyear1,00,000fullypaidupEquitySharesofRs.10eachrepresenting100%ofEquityShareCapitalofKonkanStorageSystems(Kochi)Pvt.Ltd.atparandhasmadealoanof Rs. 1,225 lacs for repayment of loans and creditors and for upgrading the Bulk Liquid Terminalownedbythiscompany,whichisakinandgermanetotheBusinessoftheCompany.

B.11. Additional informationpursuant totheprovisionsofparagraphs3,4Cand4Dofpart-IIofSchedule-VI totheCompaniesAct,1956.

(A) QuantitiesandSalesValueofeachclassofgoodsdealtwithbytheCompany:

Current Financial Year PreviousFinancialYear

CLASS OF GOODS

Qty. MT

Sales Value Rupees in lacs Qty.MT

SalesValueRupeesinlacs

Goods Traded in:

LiquifiedPetroleumGas 56,783 18,320.03 29,672 9,597.58

TOTAL 18,320.03 9,597.58

(B) GOODS TRADED IN


PURCHASE:

Qty. MT

Sales Value Rupees in lacs Qty.MT

SalesValueRupeesinlacs

LiquifiedPetroleumGas* 56,281 16,719.18 30,015 8,707.69

TOTAL 16,719.18 8,707.69

Schedules (Contd.)


47

(C) VALUE AND QUANTITATIVE BREAK-UP IN RESPECT OF OPENING AND CLOSING STOCK OF EACH CLASS OF GOODS TRADED IN:


CLASS OF GOODS Opening Stock As at 1st April,

2006

Closing Stock As at 31st March,

2007

OpeningStockAsat1stApril,

2005

ClosingStockAsat31stMarch,

2006

Qty. MT Value Rupees in lacs

Qty. MT Value Rupees in lacs

Qty.MT ValueRupeesinlacs

Qty.MT ValueRupeesinlacs

Goods Traded in:

LiquifiedPetroleumGas 1,680 549.45 1,178 349.12 1,337 296.52 1,680 549.45Others 0.98 — 0.98 0.98

TOTAL 550.43 349.12 297.50 550.43

*NetofHandlingLoss

(D) VALUE OF IMPORTS CALCULATED ON C.I.F. BASES IN RESPECT OF:


Rupees in lacs


Rupeesinlacs

(i) MerchantingGoods 14,474.39 7,112.35(ii) Stores&Spares 68.35 29.97

(E) EXPENDITURE IN FOREIGN CURRENCY ON ACCOUNT OF:


Rupees in lacs


Rupeesinlacs

ProfessionalCharges 48.59 55.73Bank/FinanceCharges 63.40 21.96OtherMatters 7.88 7.49

(F) VALUE OF STORES AND SPARES CONSUMED:


Rupees in lacs

Percentage of Total

ConsumptionRupeesinlacs

PercentageofTotal

Consumption

ValueofStoresandsparesconsumed:Imported 37.91 22.70 21.45 11.20Indigenous 129.12 77.30 170.12 88.80

167.03 100.00 191.57 100.00

(ExcludesSparesconsumedforrepairsetc.andchargedtorelevantheadsofaccounts)

(G) EARNINGS IN FOREIGN CURRENCY:


Rupees in lacs


Rupeesinlacs

ServiceRevenue 50.41 178.77

Schedules (Contd.)


48

(H) AMOUNT REMITTED DURING THE YEAR IN FOREIGN CURRENCY ON ACCOUNT OF DIVIDENDS:



(i) NumberofNon-ResidentShareholders 2 2

(ii) NumberofSharesheldbythemonwhichDividendwasdue 7,303,282 7,318,760

(iii) YeartowhichDividendrelates 2005-06 2004-05

(iv) Amountremitted(Rs.inlacs) 182.58 87.82

B.12. The amount of exchange loss (net of gain) debited to the Profit and Loss Account is Rs. 10.38 Lacs(PreviousYearexchangeloss(netofgain)ofRs.18.66lacs).

B.13. SundryDebtorsincludeRs.270.46lacs(PreviousYearRs.1.57lacs),AdvancesrecoverableincashorkindincludeRs.1,184.57lacs(PreviousYearRs.1,540.67lacs){MaximumbalanceoutstandingduringtheyearRs.1,540.67lacsPreviousYearRs.1,896.77lacs}andTradeDeposits includeRs.900lacs(PreviousYearRs. 900 lacs) {Maximum balance outstanding during the year Rs. 900 lacs (Previous Year Rs. 900 lacs)}due from Hindustan Aegis LPG Ltd. a Company under the same management within the meaning ofSection370(1B)oftheCompaniesAct,1956.

B.14. Thedetailsofderivativeinstrumentsandforeigncurrencyexposuresareasunder:

(a) Forward contracts outstanding in USD 10.89 lacs (equivalent to Rs. 473.39 lacs) as on 31st March,2007.(PreviousYearRs.Nil)

(b) Theyearend foreigncurrencyexposuresnothedgedbyaderivative instrumentorotherwiseare forImportofgoodsamountingtoUSD30.48lacs(PreviousYearUSD18.57lacs)equivalenttoRs.1,325.01Lacs(PreviousYearRs.828.71lacs).

B.15. Disclosureof Loans/Advances toSubsidiaries,AssociateCompaniesetc. (As requiredby clause32of thelistingagreementwithMumbaiStockExchange):

(Rs.inlacs)

SubsidiaryCompanies:Amount

OutstandingMax.AmountOutstanding

1. SeaLordContainersLimited 2,008.26 2,008.26

2. KonkanStorageSystems(Kochi)PrivateLimited 1,225.00 1,225.00

(a) LoansandadvancestoemployeesandinvestmentsbysuchemployeesinthesharesoftheCompanyareexcludedfromtheabovedisclosure.

(b) Inrespectoftheaboveloansthereisnorepaymentscheduleandtheyarerepayableondemand. (c) InrespectoftheloanofRs.1,225lacs(PreviousYearRs.Nil)giventoKonkanStorageSystems(Kochi)

PrivateLimited,awhollyownedsubsidiaryoftheCompany,nointerestischarged. However, the provisions of Section 372A of the Companies Act, 1956 are not applicable to loans

coveredunder(c)aboveinviewoftheloaneebeingawhollyownedsubsidiaryoftheCompany.

B.16. Figures for thepreviousyearhavebeen regroupedwherevernecessary tocorrespondwith figuresof thecurrent year. Amounts and other disclosures for the preceding year are included as an integral part ofthecurrentyear financialstatementsandaretobereadinrelationtotheamountsandotherdisclosuresrelatingtothecurrentyear.

Signatures to Schedules 1 to 18AsperourAttachedReportofevendate ForandonbehalfoftheBoardofDirectors

S.K.Hazra Managing DirectorForC.C.Chokshi&Co.Chartered Accountants

V.B.Gangar

D.J.Khimasia

R.J.Karavadia

K.S.Nagpal}R.Laxminarayan JignashaShah


Place :Mumbai Place :MumbaiDated:28thMay,2007 Dated:28thMay,2007


49

I. RegistrationNumber 1 0 3 2 Statecode 0 4

BalanceSheetDate 3 1 0 3 2 0 0 7Date Month Year

II. Capitalraisedduringtheyear(inthousand)

PublicIssue RightsIssue

N I L N I L

BonusIssue PrivatePlacementN I L N I L

III. Positionofmobilisationanddeploymentoffunds(inthousand)

Sources of Funds

TotalLiabilities TotalAssets1 6 0 7 9 6 7 1 6 0 7 9 6 7

PaidupCapital ReservesandSurplus1 6 3 0 6 3 1 0 2 2 2 8 4

SecuredLoans UnsecuredLoans2 8 9 9 9 7 5 6 9 6 0

DeferredTaxLiability7 5 6 6 3

Application of Funds

NetFixedAssets Investments6 5 9 5 3 6 1 6 5 0 3 2

NetCurrentAssets MiscellaneousExpenditure7 8 3 3 9 9 N I L

IV. PerformanceofCompany(inthousand)Turnover TotalExpenditure

2 4 3 7 3 5 5 2 1 5 9 7 9 6

Profitbeforetax ProfitafterTax

2 7 7 5 5 9 2 3 5 9 2 9

EarningpershareinRs. DividendRate(%)

1 4 . 4 4 2 5 %

V. GenericNamesofPrincipalProducts/ServicesoftheCompany(AsperMonetaryTerms)

ItemCodeNo 2 7 1 1 . 0 0(ITCCode)ProductDescription L I Q U I F I E D

P E T R O L E U M G A S

ForandonbehalfoftheBoardofDirectors

S.K.Hazra Managing Director

V.B.Gangar

D.J.Khimasia

R.J.Karavadia

K.S.Nagpal} JignashaShah

Company Secretary Directors

Place :MumbaiDated : 28thMay,2007

Balance Sheet Abstract and Company’s General Business Profile (in thousand)


50

Statement pursuant to Section 212 of the Companies Act, 1956 relating to Subsidiary Companies

(Rs. in Lacs)

Sea Lord Containers Ltd.

Konkan Storage Systems (Kochi)

Pvt. Ltd.

A. The Financial Year of the subsidiary ended on 31st March, 2007 31st March, 2007

B. Holding Company’s Interest

(i) Equity Shares

(a) No. of shares (FV Rs. 10/-) fully paid 937500 100000

(b) % shares held by the holding company 75% 100%

(ii) 6% Cumulative Redeemable Preference Shares

(a) No. of shares (FV Rs. 100/-) fully paid 1200000 NA

(b) % shares held by the holding company 100% NA

C. Net aggregate amount of Profit/(Loss) of the Subsidiary, so far as they concern membersof the Company

(i) For the Financial Year of Subsidiary

(a) Dealt with the accounts of the Holding Company *NA (4.61)

(b) Not dealt with the accounts of the Holding Company *NA NIL

(ii) For the Previous Financial Years of Subsidiary since it became the holding company’s subsidiary

(a) Dealt with the accounts of the Holding Company **NA **NA

(b) Not dealt with the accounts of the Holding Company NA NA

D. Changes in the interest of the Holding Company or the subsidiary company between the end of the financialyear of the subsidiary company and 31st March, 2007 NA NA

E. Material changes between the end of the Financial Year of the subsidiary company and 31st March, 2007

(i) Fixed Assets (Purchased) NA NA

(ii) Investments (Net) NA NA

(iii) Money lent by subsidiary NA NA

(iv) moneys borrowed by the subsidiary company other than for meeting current liabilities NA NA

* No profit and loss has been prepared pending commencement of commercial operations** Company became subsidiary during the current financial year 2006-07

For and on behalf of the Board of Directors

S. K. Hazra Managing Director

V. B. Gangar

D. J. Khimasia

R. J. Karavadia

K. S. Nagpal} Jignasha Shah

Company Secretary Directors

Place : Mumbai Dated : 28th May, 2007


51

Auditors’ Report

To the Board of Directors of Aegis Logistics Limited on the Consolidated Financial Statements of Aegis Logistics Limited and its Subsidiaries (Aegis Group).

1. WehaveauditedtheattachedconsolidatedBalanceSheetofAegisGroupasat31stMarch,2007andalso the consolidatedprofit and lossaccountand the consolidatedcash flowstatement fortheyearendedonthatdateannexedthereto.ThesefinancialstatementsaretheresponsibilityofthemanagementofAegisLogisticsLimitedandhavebeenpreparedbythemanagementonthebasisofseparatefinancialstatementsandotherfinancialinformationregardingcomponents.Ourresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudit.

2. We conducted our audit in accordance with the generally accepted auditing standards in India.ThoseStandardsrequirethatweplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreeofallmaterialmisstatement.Anauditincludesexamining,onatestbasis,evidencesupportingtheamountsanddisclosuresinthefinancialstatements.Anaudit also includesassessing theaccountingprinciplesusedand significant estimatesmadebymanagement,aswellasevaluatingtheoverallfinancialstatementpresentation.Webelievethatourauditprovidesareasonablebasisforouropinion.

3. WedidnotauditthefinancialstatementsofthesubsidiarieswhosefinancialstatementsreflecttotalassetsofRs.8,485.13lacsasat31stMarch,2007andtotalrevenuesofRs.3.39lacsandcashflowsamountingtoRs.31.92lacsfortheyearthenended.Thesefinancialstatementsandotherfinancialinformationhavebeenauditedbyotherauditorswhosereportshavebeenfurnishedtous,andouropinionisbasedsolelyonthereportsoftherespectiveauditors.

4. We report that the consolidated financial statements have been prepared by the managementofAegisLogisticsLimited inaccordancewith the requirementsofAccountingStandard (AS21),ConsolidatedFinancialStatementsissuedbytheInstituteofCharteredAccountantsofIndia.

5. Basedonourauditandonconsiderationofreportsofotherauditorsonseparatefinancialstatements,theotherfinancialinformationofthecomponentsandtothebestofourinformationandaccordingtoexplanationsgiventous,weareoftheopinionthattheattachedConsolidatedFinancialStatementsgiveatrueandfairviewinconformitywiththeaccountingprinciplesgenerallyacceptedinIndia:

(i) in the case of the Consolidated Balance Sheet, of the state of affairs of Aegis Group at31stMarch,2007;

(ii) inthecaseoftheConsolidatedProfitandLossAccount,oftheprofitofAegisGroupfortheyearendedonthatdate;and

(iii) inthecaseoftheConsolidatedCashFlowStatement,ofthecashflowsofAegisGroupfortheyearendedonthatdate.

ForC.C.CHOKSHI&CO.Chartered Accountants

R.LaxminarayanPlace : Mumbai, PartnerDated: 28thMay,2007 MembershipNo.33023


52

ScheduleRupeesinlacs

Rupeesinlacs

I. SOURCES OF FUNDS:

1. Shareholders' funds: (a) Capital 1 1,630.63 (b) ReservesandSurplus 2 10,028.36

11,658.99

2. Loan funds:

(a) SecuredLoans 3 6,099.97

(b) UnsecuredLoans 4 569.60

6,669.573. Deferred Tax Liability (Net) 756.63

TOTAL 19,085.19

II. APPLICATION OF FUNDS:1. Fixed Assets: 5 (a) GrossBlock 13,363.38 (b) Less:Depreciation 2,476.55

(c) NetBlock 10,886.83 (d) CapitalWork-in-Progress 4,571.88

15,458.712. Investments 6 304.343. Current Assets, Loans and advances:

(a) Inventories 7 645.60 (b) SundryDebtors 8 2,425.73 (c) CashandBankBalances 9 2,236.09 (d) LoansandAdvances 10 3,473.11

8,780.53

Less: Current Liabilities and Provisions: 11 (a) CurrentLiabilities 4,920.14 (b) Provisions 538.25

5,458.39

Net Current Assets 3,322.14

TOTAL 19,085.19

Significant Accounting Policies and 18

Notes on accounts

Schedules1to18annexedheretoformpartoftheseaccounts

Consolidated Balance Sheet as at 31st March, 2007

AsperourAttachedReportofevendate ForandonbehalfoftheBoardofDirectors


V.B.Gangar

D.J.Khimasia

R.J.Karavadia





53

Consolidated Profit and Loss Account for the year ended 31st March, 2007

ScheduleRupeesinlacs

Rupeesinlacs

INCOME OperatingRevenue Sales(Net) 18,320.03 ServiceRevenue 5,718.22

24,038.25 OtherIncome 12 286.97

TOTAL 24,325.22

EXPENDITURE MaterialCosts 13 16,920.49 ManufacturingandOperatingExpenses 14 1,901.63 EmploymentCosts 15 843.01 Administrative,Selling&GeneralExpenses 16 1,382.07 InterestandFinanceCharges 17 323.64 Depreciation 385.46 Less:TransferredtoExpenditureduringConstructionPeriod 2.37 383.09

TOTAL 21,753.93

Profit before Tax 2,571.29 ProvisionforTaxation: CurrentTax 405.00 (includingWealthtaxRs.0.73lacs) FringeBenefitTax 20.01 DeferredTax 31.00

456.01 (Excess)ProvisionforTaxforEarlieryearswrittenback (39.70)

Profit after Tax 2,154.98 BalanceinProfitandLossAccountBroughtForward 6,562.29

Amountavailableforappropriation 8,717.27

APPROPRIATIONS TransferredtoGeneralReserve 235.93 Transfer(from)DebentureRedemptionReserve (25.00) (Excess)ProposedDividendofpreviousyearwrittenback (0.66) ProposedDividend 407.66 CorporateDividendTaxthereon 69.28 BalanceCarriedtoBalanceSheet 8,030.06

TOTAL 8,717.27

Basic & Diluted Earnings per Equity Share 13.19Significant Accounting Policies and 18 Notes on accountsSchedules1to18annexedheretoformpartoftheseaccounts



V.B.Gangar

D.J.Khimasia

R.J.Karavadia





54

Consolidated Cash Flow Statement for the year ended 31st March, 2007Rupeesinlacs

A. Cash Flow from Operating Activities:

ProfitBeforeTax 2,571.29

Adjustmentsfor:

Depreciation 383.08

PreliminaryExpensesWrittenoff 1.07

InterestExpenses(Net) 323.64

DividendIncome (53.36)

Diminutioninvalueofcurrentinvestments 4.11

ProvisionforDiminutionwrittenback (1.62)

SundryBalanceswrittenback(net) (8.34)

(Profit)/LossonsaleofFixedAssets (5.89)

(Profit)onsaleofLongTermInvestments (11.17)

(Profit)onsaleofCurrentInvestments (71.16)

560.36

OperatingProfitBeforeWorkingCapitalChanges 3,131.65

(Increase)inTradeandOtherReceivables (1,360.30)

DecreaseinInventories 124.79

IncreaseinTradeandOtherPayables 3,077.21

IncreaseinLeaveEncashment 8.22

IncreaseinGratuity 10.29

1,860.21

CashGeneratedfromOperations 4,991.86

DirectTaxesPaid (436.42)

NetCashFlowfromOperatingActivities A 4,555.44

B. Cash Flow from Investing Activities:

PurchaseofFixedAssets (7,425.51)

PreliminaryExpenses (1.07)

SaleofFixedAssets 127.76

PurchaseofLongTermInvestments&Goodwill (1,345.98)

SaleofLongTermInvestments 21.25

SaleofCurrentInvestments 20,126.09

PurchaseofCurrentInvestments (18,621.49)

DepositinEscrowaccountforpurchaseofshares 25.00

InterestReceived(Net) 120.52

DividendReceived 0.50

NetCashusedinInvestingActivities B (6,972.93)


55

Rupeesinlacs

C. Cash Flow from Financing Activities:

IncreaseinTermandOtherBorrowings 3,850.19

IncreaseinEquityCapital 10.00

ReceiptofCallsinArrearsonEquityShares(includingSharePremium) 0.05

DividendPaid(includingtaxonDistributedProfit) (458.24)

InterestPaid (445.62)

NetCashusedinFinancingActivities C 2,956.38

NetIncreaseinCashandCashEquivalents A+B+C 538.89

CashandCashEquivalentsasattheendoftheyear:

—Cash&BalancesinCurrentAccountswithBanks 608.60

—DepositswithBanksandInterestAccruedthereon 1,284.96

1,893.56

Less:CashandCashEquivalentsasatthebeginningoftheyear 1,354.67

Net Increase in Cash and Cash Equivalents 538.89

Notes:

1. Cash and Cash Equivalents do not include Fixed Deposits with Banks asmarginmoneyandasEscrow.

2. Figuresinbracketdenoteoutflowofcash.

3. The above Cash Flow Statement has been prepared under the "IndirectMethod' set out in Accounting Standard (AS - 3) "Cash Flow Statements"issuedbytheInstituteofCharteredAccountantsofIndia.

4. ThisbeingthefirstyearofpreparationofConsolidatedCashFlowStatement,figuresofthepreviousyeararenotfurnished.



V.B.Gangar

D.J.Khimasia

R.J.Karavadia





56

Schedules 1 to 18 Forming Part of Balance Sheet and Profit & Loss AccountAsat31st

March,2007Rupeesinlacs

SCHEDULE 1: SHARE CAPITALAuthorised:4,90,00,000 EquitySharesofRs.10each 4,900.00 1,00,00013.5%CumulativeRedeemable PreferenceSharesofRs.100each 100.00

TOTAL 5,000.00

Issued:1,63,40,584 EquitySharesofRs.10each 1,634.06

Subscribed and Paid up:1,63,40,584EquitySharesofRs.10eachfullycalledup 1,634.06 Less:Calls/allotmentmoniesunpaid 3.43

TOTAL 1,630.63

Notes:OftheaboveShares:

1. 20,000EquitySharesofRs.10eachfullypaidupallottedinearlieryearhavebeenissuedtotwonon-residentcompaniesagainsttheirdeposits.Thesaiddepositswereutilisedtowardsimportofcapitalgoods.

2. 8,20,000EquitySharesofRs.10eachwereallottedinearlieryearsasfullypaidupbywayofBonusSharesbycapitalisationofGeneralReserve.

3. 74,900EquitySharesofRs.10eachwereallottedon11thMarch,1981asfullypaidupwithoutpaymentbeingreceivedincashpursuanttotheschemeofamalgamationsanctionedbyorderoftheHighCourtofGujaratdated16thDecember,1980.

4. 2,81,000EquityWarrantshavebeenconvertedintoEquitySharesduringtheyear1995-96.

5. 11,83,400EquitySharesofRs.10eachhavebeenallottedasfullypaidupandissuedtoShareholdersoferstwhileAmitAlcoholandCarbonDioxideLtd.onamalgamationwithoutpaymentbeingreceivedincashpursuanttotheschemeofamalgamationsanctionedbyorderoftheHighCourtofGujaratdated2ndApril,1997.

Rupeesinlacs

Asat31stMarch,2007

Rupeesinlacs

SCHEDULE 2: RESERVES AND SURPLUS

CapitalReserve AsperLastBalanceSheet 54.90 SecuritiesPremiumAccount AsperLastBalanceSheet 1,363.51 Add:Receivedduringtheyear 0.04

1,363.55 Note:SecuritiesPremiumPayableonCall/AllotmentMoniesUnpaidRs.7.68lacs DebentureRedemptionReserve: AsPerLastBalanceSheet 25.00 Less:TransfertoProfitandLossAccount 25.00

— GeneralReserve AsPerLastBalanceSheet 343.92 Add:TransferredfromProfitandLossAccount 235.93

579.85 BalanceinProfitandLossAccount 8,030.06

TOTAL 10,028.36


57

Schedules (Contd.)Asat31st

March,2007Rupeesinlacs

SCHEDULE 3: SECURED LOANS

Term Loans

(A) FromFinancialInstitutions:

(i) Secured by mortgage of immovable properties of the Company situatedat Trombay and Vapi ranking pari passu and hypothecation of movablepropertiesoftheCompany;subjecttopriorchargeinfavourofbankersforworkingcapitalloans. 1,004.79

(ii) Secured by mortgage of specific immovable office property, furniture &fixturestherein,situatedatMumbai. 188.48

(B) FromBank:

(i) Secured by mortgage of immovable properties of the Group situatedat Trombay and Vapi ranking pari passu and hypothecation of movablepropertiesoftheGroupandacorporateguarantee;subjecttopriorchargeinfavourofbankersforworkingcapitalloans. 4,900.00

(ii) Secured by hypothecation of specific Vehicles (Due within one yearRs.6.55lacs)

6.70

TOTAL 6,099.97

SCHEDULE 4: UNSECURED LOANS

Fixed Deposits

(DuewithinoneyearRs.299.40lacs) 569.60

TOTAL 569.60


58

Sche

dule

s (C

ontd

.)

SC

HE

DU

LE

5:

FIX

ED

ASSE

TS

(Ru

pee

sin

lacs

)

G

R

O

S

S

B

LO

C

K

D

E

PR

E

C

I

A

T

IO

N

NE

TB

LOC

KA

sat

1

stA

pri

l, 2

00

6

Ad

ditio

ns

Ded

uct

ion

s A

s at

31st

Mar

ch,

2007

As

at

1st

Ap

ril,

20

06

For

the

yea

r(S

eeN

ote

N

o.A

.13

)

Ded

uct

ion

sA

s at

31st

Mar

ch,

2007

As

at

31st

Mar

ch,

2007

Tan

gib

le A

ssets

Free

ho

ldL

and

39

7.8

3

32

.66

—

4

30.4

9

1.4

8

—

—

1.4

8

429.0

1

Leas

eho

ldL

and

1

74

.31

4

42

.34

1

74

.31

4

42.3

4

54

.67

0

.30

5

4.6

7

0.3

0

442.0

4

Bu

ildin

gs

8

72

.14

2

45

.24

3

5.0

0

1,0

82.3

8

89

.57

1

3.6

1

35

.00

6

8.1

8

1,0

14.2

0

Plan

tan

dM

ach

iner

y6

,91

0.4

5

2,7

35

.52

—

9

,645.9

7

1,8

42

.98

3

30

.01

—

2

,172.9

9

7,4

72.9

8

Furn

itu

rea

nd

Fix

ture

s7

5.1

8

2.3

3

—

77.5

1

19

.94

4

.74

—

2

4.6

8

52.8

3

Offic

eE

qu

ipm

ents

1

84

.16

2

8.5

2

4.4

5

208.2

3

10

8.4

0

15

.99

2

.22

1

22.1

7

86.0

6

Veh

icle

s1

69

.62

2

3.9

2

—

193.5

4

52

.20

1

7.6

3

—

69.8

3

123.7

1

Inta

ngib

le A

ssets

—

So

ftw

are*

21

.63

1

1.4

7

—

33.1

0

13

.74

3

.18

—

1

6.9

2

16.1

8

Go

od

will

on

Co

nso

lidat

ion

—

1,2

49

.82

—

1,2

49.8

2

——

— —

1

,249.8

2

TO

TAL

8,8

05

.32

4

,77

1.8

2

21

3.7

6

13,3

63.3

8

2,1

82

.98

3

85

.46

9

1.8

9

2,4

76.5

5

10,8

86.8

3

*O

ther

th

anin

tern

ally

gen

erat

ed

C

apital

Wo

rk-i

n-p

rog

ress

4,5

71.8

8

TO

TAL

15,4

58.7

1

NO

TE

S:

(1)

Gro

ssB

lock

isa

tco

st.

(2)

Bu

ildin

gs

incl

ud

eR

s.5

.58

lacs

fo

rp

rem

ises

inC

o-o

per

ativ

eS

oci

ety

agai

nst

wh

ich

th

esh

ares

oft

he

face

val

ue

ofR

s.5

00

are

hel

du

nd

ert

he

bye

-law

so

fth

eso

ciet

y.(3

)G

ross

Blo

cko

fas

sets

incl

ud

esF

reeh

old

Lan

da

tTr

om

bay

ofth

eva

lue

ofR

s.9

6.8

7la

csg

iven

on

leas

e.(4

)Th

eab

ove

incl

ud

esa

sset

sh

eld

fo

rd

isp

osa

lin

ap

rio

rye

ara

sg

iven

bel

ow

:

(Ru

pee

sin

lacs

)

Ass

ets

hel

dfo

rd

isp

osa

l

G

R

O

S

S

B

LO

C

K

D

E

PR

E

C

I

A

T

IO

N

IMPA

IRM

EN

TN

ETB

LOC

K

AtC

ost

as

at

1st

Ap

ril,

20

06

Ded

uct

ion

sA

s at

31st

M

arch

, 2007

As

at

1st

Ap

ril,

20

06

For

the

year

D

edu

ctio

ns

As

at

31st

M

arch

, 2007

As

at

31st

M

arch

, 2007

As

at

31st

M

arch

, 2007

Leas

eho

ldL

and

1

74

.31

1

74

.31

—

5

4.6

7

—

54

.67

—

—

—

B

uild

ing

35

.00

3

5.0

0

—

35

.00

—

3

5.0

0

—

—

—

TO

TAL

20

9.3

1

20

9.3

1

—

89

.67

—

8

9.6

7

—

—

—


59

Schedules (Contd.)

Asat31stMarch,2007

Rupeesinlacs

SCHEDULE 6: INVESTMENTS (AT COST)

A. Long Term Investments:

InvestmentinGovernmentSecurities(Unquoted)

GovernmentSecuritiesoftheFaceValueofRs.0.38lacs(DepositedwithGovernmentauthorities) 0.38

B. Current Investments:

Non-TradeInvestments(Unquoted)

InUnitsofMutualFund 303.96

TOTAL 304.34

SCHEDULE 7: INVENTORIES

(AtCostornetrealisablevaluewhicheverislower) StoresandSpareParts 296.48 Stock-in-Trade: FinishedGoods –MerchantingGoods 349.12

TOTAL 645.60

SCHEDULE 8: SUNDRY DEBTORS (UNSECURED)

DebtsOutstandingforaperiodexceedingsixmonths—

ConsideredGood 166.47

ConsideredDoubtful 20.00

186.47

Less:ProvisionforDoubtfulDebts 20.00

166.47

OtherDebts 2,259.26

TOTAL 2,425.73

SCHEDULE 9: CASH AND BANK BALANCES

BalanceswithScheduledBanks:

– InCurrentAccount 608.60

– InDepositAccount 1,627.49

[IncludesRs.342.53lacsinMarginMoneyAccount]

[IncludesInterestaccruedRs.10.09lacs]

TOTAL 2,236.09

SCHEDULE 10: LOANS AND ADVANCES (UNSECURED AND CONSIDERED GOOD)

AdvancesRecoverableincashorinkindorforvaluetobereceived 1,971.35

DepositswithGovernmentAuthoritiesandOthers 1,276.68 AdvancePaymentofTaxes(NetofProvisionofTax) 225.08

TOTAL 3,473.11


60

Schedules (Contd.)

Rupeesinlacs

Asat31stMarch,2007

Rupeesinlacs

SCHEDULE 11: CURRENT LIABILITIES AND PROVISIONS

Current Liabilities:

SundryCreditors 3,601.88

DepositfromDealers 521.50

UnpaidDividend* 25.06

UnpaidMaturedDeposits* 13.95

InterestAccruedonMaturedDeposits* 1.68

Interestaccruedbutnotdueonloans 16.27

BalanceincurrentaccountwithBank(overdraftasperbooks) 0.17

OtherLiabilities 739.63

4,920.14

Provisions:

ProposedDividend 407.66

CorporateDividendTax 69.28

LeaveEncashment 30.88

Gratuity 30.43

538.25

TOTAL 5,458.39

* These figures do not include any amounts, due and outstanding, to becreditedtoInvestorEducationandProtectionFund.

Fortheyearended31stMarch,

2007Rupeesinlacs

SCHEDULE 12: OTHER INCOME

LeaseRent 113.05

DividendonLongTermInvestments(non-trade) 0.50

DividendonCurrentInvestments(non-trade) 52.86

ProvisionforDiminutioninvalueofLongTermInvestmentswrittenback 1.62

SundryBalanceswrittenback(Net) 8.34

ProfitonsaleofLongTermInvestments 11.17

ProfitonsaleofCurrentInvestments 71.16

MiscellaneousReceipts 22.38

Profit(Net)onSaleofFixedAssets 5.89

TOTAL 286.97


61

Schedules (Contd.)


2007Rupeesinlacs

SCHEDULE 13: MATERIAL COSTS

Merchanting Goods

OpeningStock 550.43

Add : Purchases 16,719.18

Less: ClosingStock 349.12

TOTAL 16,920.49

SCHEDULE 14: MANUFACTURING AND OPERATING EXPENSES

StoresandSparepartsconsumed 167.03

PowerandFuel 28.83

RepairstoMachinery 26.78

LeaseRentals 144.16

TankageCharges 1,128.66

WayLeaveFees 339.67

WaterCharges 45.63

PackingMaterialsandOtherCharges 20.87

TOTAL 1,901.64

SCHEDULE 15: EMPLOYMENT COSTS

Salaries,Wages,BonusandGratuity 760.80

ContributiontoProvidentFundandOtherFunds 55.05

Employees'WelfareExpenses 27.16

TOTAL 843.01


62

Schedules (Contd.)

Rupeesinlacs


2007Rupeesinlacs

SCHEDULE 16: ADMINISTRATIVE, SELLING AND GENERAL EXPENSES

Repairs

Buildings 3.16

Others 56.14

59.30

Rent 48.76

RatesandTaxes 95.32

Insurance 96.68

CommissiononSales 257.10

PrintingandStationery 22.09

CommunicationExpenses 42.46

Travelling,ConveyanceandVehicleExpenses 151.66

Advertisement 72.58

LegalandProfessionalcharges 311.90

Directors'SittingFees 3.25

Donations 99.00

Provisionfordoubtfuldebts 20.00

Sundrydebitbalancewrittenoff 3.07

Diminutioninvalueofcurrentinvestments 4.11

MiscellaneousExpenses(includingSecurityservices,

Books,Subscription,Sellingexpensesetc.) 93.72

PreliminaryExpenseswrittenoff 1.07

TOTAL 1,382.07

SCHEDULE 17: INTEREST AND FINANCE CHARGES

OnDebentures 2.42

OnFixedLoans 231.96

OnCashCreditAccountsetc. 87.98

OtherInterest 47.62

Bank/FinanceCharges 74.18

444.16

Less:Interestonloansandadvances,depositwithbanksetc. (includingtaxdeductedatsourceRs.9.68lacs) (includesinterestonincometaxrefundRs.3.21lacs)

120.52

TOTAL 323.64


63

SCHEDULE 18: SIGNIFICANT ACCOUNTING POLICIES AND NOTES FORMING PART OF CONSOLIDATED BALANCE SHEET AND PROFIT AND LOSS ACCOUNT

A.1.1. Principles of consolidation: TheconsolidatedfinancialstatementsrelatetoAegisLogisticsLimited(‘theCompany”)anditssubsidiaries,

which together constitute the Group. The consolidated financial statements have been prepared on thefollowingbasis:

(i) ThefinancialstatementsoftheCompanyanditssubsidiarycompaniesarecombinedonaline-by-linebasisbyaddingtogetherthebookvaluesoflikeitemsofassets,liabilities,incomeandexpenses,afterfullyeliminatingintra-groupbalancesandintra-grouptransactionsresultinginunrealizedprofitsorlossesinaccordancewithAccountingStandard(AS-21)“ConsolidatedFinancialStatements”issuedbytheInstituteofCharteredAccountantsofIndia.

(ii) Thedifferencebetweenthecostofinvestmentinthesubsidiaries,overthenetassetsatthetimeofacquisitionofsharesinthesubsidiariesisrecognizedinthefinancialstatementsasGoodwillorCapitalReserveasthecasemaybe.

(iii) MinorityInterest’sshareofnetprofitofconsolidatedsubsidiariesfortheyearisidentifiedandadjustedagainsttheincomeofthegroupinordertoarriveatthenetincomeattributabletoshareholdersoftheCompany.

(iv) MinorityInterest’sshareofnetassetsofconsolidatedsubsidiariesisidentifiedandpresentedintheconsolidatedbalancesheetseparatefromliabilitiesandtheequityoftheCompany’sshareholders.

(v) Asfaraspossible,theconsolidatedfinancialstatementsarepreparedusinguniformaccountingpoliciesforliketransactionsandothereventsinsimilarcircumstancesandappropriateadjustmentsaremadetothefinancialstatementsofsubsidiarieswhentheyareusedinpreparingtheconsolidatedfinancialstatementsthatarepresentedinthesamemannerastheCompany’sseparatefinancialstatements.

A1.2. ThelistofthesubsidiariesoftheCompanywhichareincludedintheconsolidationandtheGroup’sholdingthereinareasunder:

NameofSubsidiary CountryofIncorporation

PercentageHolding-Share

1.SeaLordContainersLimited India 75%2.KonkanStorageSystems(Kochi)PrivateLimited India 100%

A1.3. HindustanAegisLPGLimited(HALPG)acompanyunderthesamemanagementisclassifiedasanassociateasperAccountingStandard(AS18)“RelatedPartyDisclosures”issuedbytheInstituteofCharteredAccountantofIndia(ICAI)onthebasisofsignificantinfluencethroughrepresentationofthecompanyintheBoardofHALPG.However,accountsofHALPGarenotconsideredforconsolidationasperAccountingStandard(AS23)”AccountingforInvestmentsinAssociatesinConsolidatedFinancialStatements”issuedbyICAI,sincetheCompanydoesnotholdanyshareinHALPG.

A.2. Significant Accounting Policies

A.2.1. Basis of preparation of Financial Statements Thefinancialstatementshavebeenpreparedunderthehistoricalcostconventioninaccordancewiththe

generallyacceptedaccountingprinciplesinIndiaandtheprovisionsoftheCompaniesAct,1956.

A.2.2. Use of Estimates The preparation of financial statements requires estimates and assumptions to be made that affect the

reportedamountofassetsandliabilitiesonthedateofthefinancialstatementsandthereportedamountofrevenuesandexpensesduringthereportingperiod.Differencebetweentheactualresultsandestimatesarerecognisedintheperiodinwhichtheresultsareknown/materialised.

A.2.3. Fixed Assets FixedAssetsarecarriedatcostofacquisitionorconstruction.Theyarestatedathistoricalcosts.

A.2.4. Investments LongTermInvestmentsareshownatcost.However,whenthereisadecline,otherthantemporary,inthe

valueoflong-terminvestment,thecarryingamountisreducedtorecognisethedecline. CurrentInvestmentsarecarriedatlowerofcostandfairvalue,computedcategorywise.

A.2.5. Inventories InventoriesarevaluedatcostorNetRealisableValuewhichever is less.Cost isdeterminedbyusing the

First In First out formula.Cost comprises all costs of purchase, cost of conversion and cost incurred tobringinventoriestotheirpresentlocationandconditionotherthanthosesubsequentlyrecoverablebythecompanyfromtaxingauthorities.

Schedules (Contd.)


64

A.2.6. Timing of Revenue Recognition In appropriate circumstances, Revenue (Income) is recognised when no significant uncertainty as to

measurabilityorcollectabilityexists.

A.2.7. Operating Revenue Salesturnoverfortheyearisnetoftradediscountsandincludesalesvalueofgoodsandotherrecoveries,

suchasinsurance,transportandpackingchargesbutexcludessalestax. Servicerevenueisrecognizedontimeproportionbasisandexcludesservicetax.

A2.8. Depreciation (i) DepreciationonFixedAssetsiscalculatedonoriginalcostofFixedAssetsonstraight-linemethod

underSection205(2)(b)oftheCompaniesAct,1956attherateandinthemannerprescribedinScheduleXIVtotheCompaniesAct,1956.

(ii) Depreciationonadditionstofixedassetsduringtheyearhasbeenprovidedonproratabasisfromthedateofsuchadditions.Depreciationonassetssold,discardedordemolishedhasbeenprovidedonpro-ratabasis.

(iii) LeaseholdLandhasbeenamortisedovertheperiodoftheleaseonstraight-linebasis.

A.2.9. Intangible Assets IntangibleAssetsarestatedatcostofacquisitionlessaccumulatedamortisation.Softwareisamortisedon

straight-linebasisoveraperiodofitsestimatedusefullife,howevernotexceeding5years.

A.2.10.Voluntary Retirement CompensationpaidtoemployeeswhohaveoptedforretirementundertheVoluntaryRetirementScheme

(VRS)oftheCompanyisdebitedtoProfitandLossAccountintheyearofpayment.

A.2.11.Retirement Benefits Contribution todefinedschemessuchasProvidentFund,FamilyPensionFund,SuperannuationFund (in

thecaseofeligibleemployees)andEmployees’StateInsuranceSchemearechargedtotheProfitandLossAccountasincurred.GratuityliabilityfortheyearisfundedwithLifeInsuranceCorporationofIndiainrespectofofficersanddeterminedactuariallyasattheyear-endinrespectofotheremployees.

A.2.12.Leave Encashment TheliabilityforLeaveEncashmentonretirementoronterminationofservicesofemployeesofthecompany

isdeterminedbyactuarialvaluationandprovidedforasincurredintheyearinwhichservicesarerenderedbyemployees.

A.2.13.Foreign Currency Transactions (a) TransactionsinForeignCurrenciesarerecordedattheoriginalrateofexchangeinforceatthetimeof

occurrenceoftransactions. (b) Monetaryitemsdenominatedinforeigncurrenciesattheyear-endaretranslatedattherelevantrates

ofexchangeprevailingattheyear-end.Thetranslation/settlementdifferencesarerecognisedintheProfit&LossAccountexceptthoserelatingtoacquisitionoffixedassetsfromoutsideIndia,inwhichcasesuchexchangedifferencearecapitalised.

A.2.14.Impairment of Assets AnassetistreatedasimpairedwhenthecarryingcostofassetexceedsitsRecoverableAmount.Recoverable

Amount ishigherof anasset’sNet sellingpriceor itsValue inUse.Value inUse is thepresent valueofestimatedfuturecashflowsexpectedtoarisefromthecontinuinguseofanassetandfromitsdisposalattheendofitsusefullife.NetSellingPriceistheamountobtainablefromthesaleofanassetinanarmslengthtransactionbetweenknowledgeable,willingparties,lessthecostofdisposal.

AnimpairmentlossischargedtotheProfitandLossAccountintheyearinwhichanassetisidentifiedasimpaired.

A.2.15.Operating Lease Rentals LeaseRentalexpensesareaccountedonstraight-linebasisovertheleaseterm.

A.2.16.Borrowing Cost Borrowingcoststhatareattributabletotheacquisitionorconstructionofqualifyingassetsarecapitalisedas

partofthecostofsuchassets.Aqualifyingassetisonethatnecessarilytakessubstantialperiodoftimetogetreadyforintendeduse.Allotherborrowingcostsarechargedtorevenue.

A.2.17.Taxes on Income Currenttaxisdeterminedastheamountoftaxpayableinrespectoftaxableincomefortheyear. Deferredtaxfortheyearisrecognized,ontimingdifferences,beingthedifferencebetweentaxableincome

Schedules (Contd.)


65

andaccountingincomethatoriginateinoneperiodandarecapableofreversalinoneormoresubsequentperiods.

ProvisionforFringeBenefitsTaxismadeinaccordancewithChapterXII-HoftheIncomeTaxAct,1961. Deferredtaxassetsandliabilitiesaremeasuredusingthetaxratesandtaxlawsthathavebeenenactedor

substantivelyenactedbytheBalanceSheetdate.Deferredtaxassetsarerecognizedandcarriedforwardonlyifthereisareasonablecertainty(virtualcertaintyincaseofunabsorbeddepreciationandbusinessloss)ofitsrealization.

A.2.18.Provisions, Contingent Liabilities and Contingent Assets Provisionsinvolvingsubstantialdegreeofestimationinmeasurementarerecognizedwhenthereisapresent

obligationasaresultofpasteventsanditisprobablethattherewillbeanoutflowofresources.ContingentLiabilitiesarenotrecognizedbutaredisclosedinthenotes.ContingentAssetsareneitherrecognizednordisclosedinthefinancialstatements.

B. Notes on Balance Sheet and Profit and Loss Account

Rs.inlacs

B.1. Contingent liabilities in respect of :(a) ClaimsagainsttheCompanynotacknowledgedasdebts 12.00(b) IncomeTaxdemandsdisputedinappeal 19.35(c) EstimatedamountofcontractsremainingtobeexecutedonCapital

Accountandnotprovidedfor(NetofAdvances) 741.09InrespectofitemsmentionedunderParagraphsaandbabove,tillthemattersarefinallydecided,thefinancialeffectcannotbeascertained.

B.2. GuaranteesgiventoBanksagainstrepaymentofloansadvancedfromtimetotimetoSeaLordContainersLimitedsubsidiaryoftheCompanytotheextentofRs.4500lacs.Thebalanceofsuchloanoutstandingasat31stMarch,2007wasRs.3200lacs.

B.3. Major components of deferred tax are:Deferred Tax Liability/(Asset)RelatedtoFixedAssets 777.79VoluntaryRetirementScheme (5.04)Provisionfordoubtfuldebts (6.80)Disallowancesundersection43B (9.32)

Net Deferred Tax Liability 756.63

B.4. In respect of Sea Lord Containers Limited, Capital Work In Progress includes Rs. 1021.15 lacs beingExpenditureincurredduringtheconstructionofLiquidTerminalProjectasunder:Particulars Rs.inlacsSalaries 155.27ContributiontoPF&Otherfunds 8.29StaffWelfareExpenses 5.34LeaseRent&WayLeave 263.12Rates&Taxes 80.18Power&Lighting 7.16Insurance 21.84Travelling,ConveyanceExpenses 18.76Professional&BusinessSupportfees 97.40AdvertisementExpenses 1.54VehicleExpenses 2.05Stationery,printing,telephoneetc. 12.80AuditFees 3.19Depreciation 32.48ScrapSales (5.96)GeneralCharges(net) 29.24Interest&Bankcharges 282.70Lossonsaleofassets/Investments 5.75

TOTAL 1,021.15

Schedules (Contd.)


66

B.5. Segment Reporting - Basis of preparation

TheGrouphasidentifiedtworeportablebusinesssegments(PrimarySegments)viz.LiquidTerminalDivisionandGasTerminalDivision.

LiquidTerminalDivisionundertakesstorage&terminallingfacilityofOil&Chemicalproducts.Gas Terminal Division relates to imports, storage & distribution of Petroleum products viz. LPG,Propaneetc.

Segmentshavebeenidentifiedandreportedtakingintoaccount,thenatureofproductsandservices,thedifferingrisksandreturnsandtheinternalbusinessreportingsystems.

Theaccountingpoliciesadoptedforthesegmentreportingareinlinewiththeaccountingpoliciesofthecompanywiththefollowingadditionalpoliciesforthesegmentreporting:

(a) Revenue and expenses have been identified to segment on the basis of their relationship to theoperatingactivitiesofthesegment.Revenueandexpenseswhichrelatetotheenterpriseasawholeand arenot allocable to segment on a reasonablebasis havebeendisclosed as “Other unallocableexpenditure(net)”.

(b) Segmentassetsandsegmentliabilitiesrepresentassetsandliabilitiesinrespectivesegments.Itexcludesinvestments,taxrelatedassetsandotherassetsandliabilitieswhichcannotbeallocatedtoasegmentonareasonablebasisandhencehavebeendisclosedas“Otherunallocableassets/liabilities”.

(c) TheGroupdoesnothavematerialearningsemanatingoutsideIndia.Hence,thegroupisconsideredtooperateinonlythedomesticsegment.

InformationabouttheGroup’sbusinesssegments(PrimarySegments)isgivenbelow:

LiquidTerminalDivision

Rupeesinlacs

GasTerminalDivision

Rupeesinlacs

TotalRupeesin

lacs

SegmentRevenue 4,881.58 19,156.67 24,038.25

SegmentResults 2,666.36 998.29 3,664.65

Less: (1)Interest(net) 323.64

(2)Otherunallocableexpenditure(net) 769.72

ProfitbeforeTax 2,571.29

Less:Taxation 416.31

ProfitafterTax 2,154.98

SegmentAssets 16,730.10 5,287.74 22,017.84

OtherunallocableAssets 2,525.74

TotalAssets 24,543.58

SegmentLiabilities 2,320.74 2,316.93 4,637.67

OtherunallocableLiabilities 8,246.92

TotalLiabilities 12,884.59

SegmentCapitalExpenditure 7,555.47 – 7,555.47

OtherunallocableCapitalExpenditure 1,122.23

TotalCapitalExpenditure 8,677.70

Depreciation 354.56 – 354.56

OtherunallocableDepreciation 28.53

TotalDepreciation 383.09

Schedules (Contd.)


67

Schedules (Contd.)

B.6. Related Party Disclosures

AspertheAccountingStandard18,issuedbytheInstituteofCharteredAccountantsofIndia(ICAI),thedisclosureoftransactionswiththerelatedpartiesasdefinedintheAccountingStandardaregivenbelow:(a) Listofrelatedpartieswithwhomtransactionshavetakenplaceandrelationships:

Sr.No. NameoftheRelatedParty Relationship1 HindustanAegisLPGLimited AssociateCompany2 Mr.S.K.Hazra KeyManagementPersonnel3 Dr.(Mrs.)B.Hazra RelativeofKeyManagementPersonnel

(b) Transactionsduringtheyearwithrelatedparties:(Rs.inlacs)

Sr.No. NatureoftransactionAssociateCompany

KeyManagement

Personnel

RelativeofKeyManagement

Personnel(i) LeaseRentReceived 113.05(ii) ServiceRevenueReceived 231.43(iii) Tankagecharges 975.11(iv) TradeDeposits 900.00(v) SundryDebtors 270.46(vi) PrepaidTankageCharges 1,184.57(vii) Remuneration 82.14(viii) PaymentofRent 1.62

B.7. AsrequiredbyAccountingStandard20onEarningperShareissuedbytheInstituteofCharteredAccountantsofIndia(ICAI),basicearningpersharehasbeencalculatedbydividingnetprofitavailableforequityshareholdersbytheweightedaveragenumberofequitysharesoutstandingduringtheyearasperdetailsgivenbelow:

Rupeesinlacs

NetProfitavailableforequityshareholders 2,154.97Weightedaveragenumberofsharesusedincomputingearningperequityshare 1,63,40,584Basic&Dilutedearningpershare(Rs.)(onnominalvalueofRs.10pershare) 13.19

B.8. Theamountofexchangeloss(netofgain)debitedtotheProfitandLossAccountisRs.10.38Lacs.

B.9. Thedetailsofderivativeinstrumentsandforeigncurrencyexposuresareasunder:

(a) ForwardcontractsoutstandinginUSD10.89lacs(equivalenttoRs.473.39lacs)ason31stMarch,2007.

(b) TheyearendforeigncurrencyexposuresnothedgedbyaderivativeinstrumentorotherwiseareforImportofgoodsamountingtoUSD30.48lacsequivalenttoRs.1,325.01LacsandEuro0.07lacsequivalenttoRs.4.27lacs.

B.10. TheaccumulatedlossesapplicabletominorityexceededtheminorityinterestintheequityofthesubsidiaryvizSeaLordContainersLimited.Hence,theGrouphasabsorbedsuchexcesslossesagainstitsowninterestinthesaidsubsidiaryinaccordancewiththeAccountingStandard(AS-21)”ConsolidatedFinancialStatements”issuedbytheInstituteofCharteredAccountantsofIndia.Consequently,thereisnominorityinterestthatgetsreflectedinthisConsolidatedFinancialStatement.

B.11. ThisbeingthefirstyearofpreparationofConsolidatedFinancialStatement,figuresofthepreviousyeararenotfurnished.

Signature to Schedules 1 to 18



V.B.Gangar

D.J.Khimasia

R.J.Karavadia





68

Financial details of the Subsidiary Companies for the year ended 31st March, 2007«

(Rs. in Lacs)

Sr. No.

Particulars Sea Lord Containers Ltd.

Konkan StorageSystems (Kochi)

Pvt. Ltd.

1. Capital 1325.00 10.00

2. Reserves 1.21 0.00

3. Profit & Loss Account (1230.22) (4.61)

4. Total Assets 5429.30 3055.83

5. Total Liabilities 5333.31 3050.44

6. Investments 0.00 0.00

7. Turnover 0.00 3.39

8. Profit Before Tax 0.00 (4.60)

9. Provision for Tax 0.00 0.01

(including Deferred Tax)

10. Profit After Tax 0.00 (4.61)

11. Proposed Dividend Nil Nil

« Pursuant to exemption received from the Government of India, Ministry of Corporate Affairs under section 212(8) of the Companies Act, 1956 relating to the subsidiary companies

The annual accounts of the subsidiaries and the related detailed information will be made available to any member of the company and subsidiary company investors seeking such information at any point of time and are also available for inspection by any member of the company/subsidiary at the Corporate Office of the company. The annual accounts of the said subsidiaries will also be available for inspection at the head office of the respective subsidiary company

Documents

AEGIS AR ARTWORK FINAL 2007Aegis Logistics Ltd. 50th Annual Report 2006-2007 10 4. i. Those Members who have not encashed their dividend warrants for the Financial Year 1999-2000 to