Arshiya

International Ltd. Investor Update- FY10

FY10 FINANCIALS Consolidated FY10 V/s FY09

Rs LacsApril'09 to March'10 FY 10 FY 09

Net Sales 52,119 50,296 1,823 4%Cost of Operations 38,026 37,593 Gross Margin 14,093 12,704 1,390 11%

27.04% 25.26%

Employee Cost 3,023 3,003 Other administrative Expenses 2,431 2,349 Other Income -316 -1,156 EBIDTA 8,955 8,507 448 5%

17.18% 16.91%

Depreciation 966 701 Interest Expense 1,276 80 Profit Before Tax 6,713 7,726 -1,013 -13%

12.88% 15.36%

Exceptional Item -3,890 -10 Profit Before Tax ( After Exceptional ) 10,602 7,736 2,866 37%

20.34% 15.38%

Tax 790 1,137 Profit After Tax 9,812 6,600 3,213 49%

18.83% 13.12%

Minority Interest (MI) 14 37 Profit After Tax and MI 9,798 6,562 Normalised Profit After Tax and MI 5,908 6,552 -643 -10%

Increase

Profit Analysis FY10 v/s FY09 Rs Lacs Particulars FY10 FY09

Net Profit 9,798 6,562

IT Marketing Rights Sale 3,890 -

IT Revenues 857 1,703

Other Income 316 1,156

Operating PAT from Logistics and SCM operations

4,735

3,703

Consolidated Q4FY10 V/s Q4FY09

Rs LacsMarch'10 Quarter Q 4 ' FY 10 Q 4 ' FY 09

Net Sales 16,889 9,403 7,486 80%Cost of Operations 12,585 6,818 Gross Margin 4,304 2,585 1,719 67%

25.48% 27.49%

Employee Cost 705 594 Other administrative Expenses 862 506 Other Income -132 -170 EBIDTA 2,868 1,654 1,214 73%

16.98% 17.59%

Depreciation 239 203 Interest Expense 572 64 Profit Before Tax 2,058 1,387 670 48%

12.18% 14.75%

Exceptional Item - 5 Profit Before Tax ( After Exceptional ) 2,058 1,382 676 49%

12.18% 14.70%

Tax 214 129 Profit After Tax 1,844 1,253 590 47%

10.92% 13.33%

Minority Interest (MI) -4 -29 Profit After Tax and MI 1,848 1,283 Normalised Profit After Tax and MI 1,848 1,283 565 44%

Increase

TOP LINE CONTRIBUTORS AND BUSINESS MIX Arshiya has seen a gradual and steady increase of revenue contribution from other divisions over the last 12 months. As compared to FY09, Rail Infrastructure and Supply Chain Management divisions have shown considerable increase in revenue share in FY10.

Total Revenue Breakup Division Wise FY09

Freight Forwarding, 70.10%

Projects, 5.90%

Supply Chain Management,

15.03%

Software, 8.29%

Rail, 0.41%

Freight Forwarding

Projects

Supply Chain Management

Software

Rail

Total Revenue Breakup Division Wise FY10

Freight Forwarding, 63.10%

Projects, 8.29%

Supply Chain Management, 15.72%

Software, 3.50%

Rail, 9%

Freight Forwarding

Projects

Supply Chain Management

Software

Rail

OPERATIONAL UPDATES: Arshiya Projects Investment Outlay

Projects Actuals till 31.03.2010 (Rs in Lacs)

Total Debt Equity

Panvel - FTWZ 34,334 19,238 15,096

Khurja - FTWZ 12,369 2,500 9,869

Railway 32,757 18,228 14,529

Khurja - Distripark 6,131 0 6,131

Nagpur - FTWZ 7,003 0 7,003

Total 92,594 39,966 52,628

Overview of the three FTWZ’s is as below:- Arshiya’s first FTWZ in Mumbai, to be operational on schedule, starting May

23rd 2010. We have received the port code for Arshiya’s Mumbai FTWZ from the

Ministry of Shipping. With this code all shipping companies can now use Arshiya FTWZ as their destination.

Arshiya SCM has been successfully registered as a Unit Holder of Arshiya FTWZ. With this Arshiya SCM can hold goods on behalf of its clients and provide various ancillary services (warehouse management, labour, local distribution etc.)

The development commissioner from the Government of India has approved Arshiya for conducting activities such as blending, cutting & polishing from inside of our FTWZ’s. This adds tremendous equitable value to our integrated model & means significant savings especially for players in the Wines & Spirits Industry. We are pursuing several leads in this space and are in the process of signing agreements.

Construction update: o Mumbai FTWZ:

Civil construction of the first three warehouses is almost complete, which includes Civil & Infrastructure and other allied service provisions.

Erection of PEB, Roofing and Mezzanine decking sheets are on the final stages of completion.

HVAC System, DG Sets, IBMS and other allied electromechanical systems have been delivered to the site. Electrical installation is also as per schedule and nearing completion.

Racking systems have been delivered and currently being installed.

Pavement Quality Concrete is nearing completion in the Container Yard.

All MHE’s are currently being delivered to the site.

o Delhi (Khurja) FTWZ: Construction on schedule, to begin operations in Q2FY11. Domestic Distripark construction on schedule to begin

operations in Q3FY11 . Contracts have been executed with industry leaders such as

L&T for civil & infrastructure works, Tata Bluescope and Lloyds have been awarded the contract for PEB structure.

Boundary wall construction is in progress for FTWZ, Rail Siding and the Distripark area.

Mobilization activities are in progress at both FTWZ and Rail ICD’s (RLICD) Project. Two batching plants have been installed (one each at FTWZ and RLICD). Piling work is in progress at both the locations. Other equipment/material procurement is in progress.

o Nagpur FTWZ:

Formal Approval for our Nagpur project has been granted by the Ministry of Commerce. Notification process is in progress.

Construction on schedule, to begin operations in Q3FY11.

Recent Photographs of Mumbai FTWZ

Arshiya Rail Infrastructure added 9 rakes since operational inception in Feb,

2009. It has further executed contracts with Indian Government Body, Container

Warehouse Corporation (CWC) for a strategic rail terminal in North India and another in Gujarat in Western India. These rail terminals will serve as critical consolidation hubs for return cargo for rakes that have secured forward movement to these locations.

We have initiated movement for one of our key customers Mitsubishi (which is a 4 rake per month deal) and successfully completed loadings for them. Arshiya Rail Infrastructure: Financial Overview

Particulars

Q4 FY10 (Rs)

Total Revenue 24.74 Cr

EBITDA 5.94 Cr

PAT 74.83 Lacs

Particulars

FY10 (Rs)

Total Revenue 46.79 Cr

EBITDA 11.96 Cr

PAT 12.47 Lacs

Arshiya SCM has seen its customer base double over the last year. At

present the customer portfolio includes leading brands across Retail, Sanitary ware & Footwear industry.

It has executed contracts for handling additional verticals for its existing clients (management of a Central Retail Warehouse and Transportation Management).

These contracts were awarded to us based on our performance which also makes us their preferred partner for all new business in the near future.

Arshiya Logistics has seen an impressive volumes increase. Added 200+ new customers in the past year. Arshiya Logistics has increased its reach into new verticals like customs

clearance and transportation management. Arshiya Logistics (ALOG) has executed agreements with two strategic

NVOCC partners; Summit & Seamaster that would give us best-in-class procurement rates and service delivery capability for Asia & US routes.

Project Logistics has been included in the exclusive vendor list of two major Engineering, Procurement and Construction (EPC) clients.

Arshiya Technology in December 2009, has entered into an agreement with

aurionPro Solutions Ltd for the sale of marketing rights of its Supply Chain product suite, along with all existing customers and hosting infrastructure in an all cash deal. The Cyberlog product Suite is a completely web based comprehensive and state-of-the-art solution for integrated logistics and supply chain management with a global customer base in over 20 countries.

IT readiness for our Mumbai FTWZ is on track. Below is a brief synopsis: o Build out of the Data Center building is completed. Installation of

servers and commissioning is ongoing. o Installation of MUX including commissioning of voice & data links is

ongoing. o WMS & CFS modules have been tested successfully and are ready for

go-live operations. o Delivery of all IT equipments to the site is on-going.

ARSHIYA – AWARDS, RECOGNITION & OTHER UPDATES: 1. Arshiya successfully completed its pan India logistics convention called ELICIT

(Emerging Logistics in India Changing Infrastructure and Technology) 2009 in partnership with Economic Times. This platform is aimed at creating a forum that can effectively represent the logistics & supply chain industry.

2. We initiated a successful customer road show in US and key client prospects where we are working on mining opportunities. Additionally, the Arshiya team also established relations with leading trade bodies; AMCHAM & the US-India Business Council (USIBC) in Washington DC. AMCHAM is also actively introducing Arshiya to investment funds looking at India and we plan to have a joint road-show covering the US. As part of the US-Road Show Arshiya team also got an opportunity to address students at Wharton.

3. Arshiya’s Executive Management team has been strengthened with the appointment of Mrs. Archana A Mittal as Joint Managing Director of Arshiya International Ltd, from her capacity as Executive Director.

4. Arshiya’s Board has been strengthened with the addition of: • Mr. Mukesh Kacker, former IAS, as an Independent Director, • Mr. V. Shivkumar and Mr. Sandesh Chonkar as Executive Directors of the

company. 5. Arshiya added 2 new members into its Global Advisory Board

a. Mr. Flemming Jacobs - Former partner of AP Moller Maersk, with over 40 years of experience in the Shipping & Transportation industry. He currently serves as Senior Advisor & Non-Executive Director on a variety of boards

b. Mr. Ashutosh Varshney - Professor of Political Science at Brown University, he has served on the former UN's Millennium Task Force on Poverty & Foreign Relations. He is a consultant to the World Bank, and has also been a consultant to the United Nations Development Program

6. In the last year, Arshiya was honoured with 4 prestigious awards for its contribution to the logistics industry in India.

o Face of the Year - Express Logistics & Supply Chain Awards, India. o Visionary of the Year - Supply Chain Asia Magazine, Singapore. o Supply Chain Innovation - Supply Chain Asia Magazine, Singapore. o Logistics Company of the Year – Maritime Gateway, India.

7. Arshiya embarked on an aggressive hiring strategy targeting 64 Management Trainees from 23 top educational institutions across India in a campus recruitment exercise. These Management Trainees will be part of a leadership development program towards creating the right talent to scale Arshiya’s operations.

8. Arshiya was conferred with the “Employer of the Year” award by Indira Group of Institutes, Pune for creating employment for the youth. And have received letter of appreciation from IIM Bangalore, Calcutta, Lucknow and Kozhikode appreciating our recruitment process and the posts that we offered to the candidates.

9. Arshiya is currently planning an aggressive communication campaign pan-India, Singapore, Dubai & US, across leading news & financial dailies & magazines to announce the launch of its first FTWZ in May. We plan to have the campaign run over a 45 day period in India in conjunction with the launch. The intent of the campaign is to establish the creation of new and emerging logistics infrastructure in India and associate ourselves as the thought leader in logistics and supply chain space.