AQUA LOGISTICS LIMITED ANNUAL REPORT 2010-2011 CHAIRMAN'S REPORT From Chairman's Desk Dear Shareholders, I am very happy to present before you the annual performance summary along with major milestones achieved by your company in the Year 2010-11. As the fiscal 2011 year came to a close, we looked toward the horizon and saw a broader and brighter future taking shape for Aqua Logistics. Navigating through another challenging year in which the recession held on longer than expected and the economic recovery sputtered,we continue to diligently focus on those factors over which we have control. While slow growth conditions during most of the year offered little impetus, we seized the opportunity to intentionally broaden our horizons. We broadened our horizons by * Expanding our presence * Reaching out to new customers * Creating an industry focus * Developing our next generation of leaders. Knowing that our future is brighter in end to end logistics services, we took important steps to strategically acquire companies that fit into our scheme of plans and add immense value to our entire portfolio. Among these acquisitions was Aqua Star Distribution Logistics Pvt. Ltd., which offer organized last mile distribution services. We also added Aqua Nikkos Logistics Pvt. Ltd., a 3rd Party Logistics provider that strives to deliver the highest standards in the global logistics solutions provider industry, to our portfolio. This makes us the only truly end-to-end player in the country with proven expertise in the following areas - Project Logistics, Logistics Sourcing & Procurement, Distribution Management, Technology Solutions and Logistics Management & Supply Chain Consulting. As our horizons broadened, they began to brighten as well. While we have not yet returned to the level of financial performance that all of our stakeholders desire, top line trends were positive as the year progressed. During the year Income from Operations improved to Rs. 380.88 Crores in FY 2011 from Rs. 322 Crores in FY 2010, an increase of 19% year on year, and the Net Profits increase by 9% to Rs. 22.39 from Rs. 20.54 in FY 2010. The economic outlook for the current business year is favorable, although potential for a setback is still present, considering the turbulent economy, rising commodity prices and slower international trade. We have proven our capabilities, even under the most difficult economic conditions, thus we are very confident of a future of growth which is above par. I thank all members of the management and all employees for their committed and valuable contributions to the Group's development and the very good results achieved. I also thank all customers and partners for their confidence in Aqua Logistics and good business relations the Group enjoyed with them. Rajesh G. Uchil Chairman.