1
AnnuAl RepoRt 2010-11
BOARD OF DIRECTORSMr. Sajid Malik Managing DirectorMrs. Saroja Malik DirectorMr. Ganapathy Vishwanathan Independent DirectorMr. Ganesh Acharya Independent Director
COMPANY SECRETARYMr. Deeraj Nair
AUDITORSM/s. Dixit Dattatray & Associates,Chartered Accountants
REGISTERED OFFICE73-A, SDF-III SEEPZ, Andheri (East) Mumbai 400 096 Telephone: 91-22-4488 4488 Fascimile: 91-22-2829 0603 Web site: www.giesl.com
BANKERSState Bank of India HDFC Bank Ltd.
CORPORATE INFORMATIONDEVELOPMENT CENTRE75 B, SDF – IIISEEPZ, Andheri (East), Mumbai – 400 096
SUBSIDIARYGenesys Enterprises Inc., USA 108, Corporate Park Drive, Suite 211, White Plains, New York 10604 USA
REGISTRAR AND SHARE TRANSFER AGENTBigshare Services Private Limited E/2, Ansa Industrial Estate, Saki-Vihar Road, Saki-Naka, Andheri (East), Mumbai 400 072.Telephone: 91-22-4043 0200 Fascimile: 91-22-2847 5207, Email: [email protected]
Contents.............................................................................................................. PageManaging Director’s Message ................................................................................................. 2Notice ...................................................................................................................................... 3Directors’ Report ...................................................................................................................... 7Annexure to the Directors’ Report ........................................................................................... 9Corporate Governance Report .............................................................................................. 10Management Discussion & Analysis...................................................................................... 19Auditors’ Report ..................................................................................................................... 21Balance Sheet ....................................................................................................................... 24Profit and Loss Account ......................................................................................................... 25Schedules ............................................................................................................................. 26Cash Flow Statement ........................................................................................................... 36Balance Sheet Abstract and Company’s General Profile ...................................................... 37Statement Pursuant to Section 212 ....................................................................................... 38Consolidated Accounts .......................................................................................................... 40
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GI enGIneeRInG SolutIonS lIMIteD
MeSSAGe FRoM the MAnAGInG DIReCtoR
Dear Shareholders,
Your Company has been initiating steps to get into the power sector. As an enabling act, it has
amended its Main Objects Clause to include therein activities relating to Power generations
and setting up of Power Projects, in addition to its existing business activities.
Given the large investment and time cycles normally associated with these projects, the
Company will be taking steps appropriate to the needs of the project.
The Company had last year, taken steps to build the necessary framework and was in active
discussion with strategic partners for the same.
The Company is hopeful of progressing with this approach albeit volatile global conditions.
SAJID MAlIK
MAnAGInG DIReCtoR
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AnnuAl RepoRt 2010-11
NoticeisherebygiventhattheFifthAnnualGeneralMeetingof theMembersofGI EngineeringSolutions LimitedwillbeheldonThursday,September22,2011at3.00p.m.atKohinoorContinental,Andheri-KurlaRoad,Andheri(East),Mumbai-400059totransactthefollowingbusiness:
ORDINARY BUSINESS:
1) ToconsiderandadopttheauditedBalanceSheetasatMarch31,2011andtheProfitandLossaccountfortheyearendedonthatdateandtheReportsoftheDirectorsandAuditorsthereon.
2) ToappointaDirectorinplaceofMr.GanapathyVishwanathan,whoretiresbyrotationandbeingeligible,offershimselfforre-appointment.
3) ToappointAuditorsandtofixtheirremunerationandinthisregardtoconsiderandifthoughtfit,topass,withorwithoutmodification(s), the following resolution as anOrdinaryResolution:
“RESOLVED THATpursuanttosection224oftheCompaniesAct, 1956M/s.DixitDattatray&Associates, CharteredAccountants(ICAIRegistrationNo.102665W),theretiringAuditorsoftheCompany,beingeligibleforre-appointment,bere-appointedasAuditorsoftheCompany,toholdofficefromtheconclusionofthisAnnualGeneralMeeting,untiltheconclusionofthenextAnnualGeneralMeetingoftheCompanyonsuch remunerationasshallbe fixedby theBoardofDirectorsoftheCompany.”
SPECIAL BUSINESS
4) To consider and, if thought fit, to passwith orwithoutmodification(s), the following resolution as anOrdinaryResolution:
“RESOLVED THATpursuanttotheprovisionsofSections16,94andotherapplicableprovisions,ifany,oftheCompaniesAct, 1956, the existingAuthorizedShareCapital of Rs.8500,00,00,000/- (RupeesEight ThousandFiveHundredCroresonly)oftheCompanyconsistingof850,00,00,000(Eight Hundred Fifty Crores only) Equity Shares ofRs.10/-eachbeandisherebyreclassifiedas849,00,00,000(EightHundredFortyNineCroresonly) EquitySharesofRs.10/-eachaggregatingtoRs.8490,00,00,000/-(RupeesEightThousandFourHundredandNinetyCroresonly)and1,00,00,000/-(OneCroreonly)PreferenceSharesofRs.10/-each,whetherCumulativeorNon-Cumulative,aggregatingto Rs. 10,00,00,000/- (Rupees Ten Crores only) andconsequentlyclauseVoftheMemorandumofAssociationoftheCompanybeandisherebyalteredbysubstitutingthefollowingnewclauseVinplaceofexistingclausethereof:
notICe
V. TheAuthorisedShareCapital of theCompany isRs.8500,00,00,000/- (RupeesEight ThousandFiveHundredCroresonly)consistingof849,00,00,000(EightHundredFortyNineCrores only) EquityShares of Rs. 10/- eachand1,00,00,000/- (Onecroreonly)PreferenceSharesofRs. 10/- each,whether Cumulative orNon-cumulative,with the rights, privileges, conditions, attached theretoasareprovidedbytheregulationsoftheCompanyforthetimebeinginforcewithpowertoincreaseorreducesuchcapital or divide the capital into several classes and toattach respectively suchpreferential, qualifiedor specialrights,privilegesorconditionsasmaybedeterminedbyor in accordancewith theArticlesofAssociationof theCompany, and to vary,modify, amalgamateor abrogateanysuchrights,privilegesorconditionsinsuchmannerasmaybepermittedbytheCompaniesAct,1956orprovidedbytheArticlesofAssociationoftheCompanyforthetimebeinginforce."
"RESOLVED FURTHER THATforthepurposeofgivingeffecttotheresolutiontheBoardbeandisherebyauthorisedtodoallsuchacts,deeds,mattersandthingsasitmayinitsabsolutediscretionthinkfitanddeemnecessary."
5) To consider and, if thought fit, to passwith orwithoutmodification(s), the following resolution as a SpecialResolution:
“RESOLVED THAT pursuant toprovisionsof section80,81(1A)andallotherapplicableprovisionsoftheCompaniesAct, 1956 (including any statutorymodification or re-enactment thereof for the timebeing in force) enablingprovisionsoftheMemorandumandArticlesofAssociationoftheCompanyandtheListingAgreementsenteredintobytheCompanywiththeStockExchangeswherethesecuritiesoftheCompanyare listedandsubjecttoanyguidelines,regulations,approval,consent,permissionorsanctionoftheCentralGovernment,ReserveBankofIndia,SecuritiesandExchangeBoard of India and any other appropriateauthorities,institutionsorbodiesifany,asmayberequiredandsubjecttosuchconditionsandmodificationsasmaybe prescribed by these authoritieswhile granting suchapprovals andpermissions asmaybe agreed to by theBoardofDirectors(hereinafterreferredtoasthe‘Board’),consentoftheshareholdersbeandisherebyaccordedtoauthorizetheBoardtooffer,issueandallotupto70,00,000RedeemableCumulativePreferencesharesoffacevalueofRs.10each,inoneormoretranchesonaprivateplacementbasisorotherwisetoassociates,groupcompaniesoranyotherCompanyorpersonsasmaybedecidedanddeemedappropriatebytheBoardatthetimeofissueorallotment
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GI enGIneeRInG SolutIonS lIMIteD
subjecttothefollowingtermsandconditions.
1) The Preference Shareswill be 4.5% RedeemableCumulativePreferenceSharesoffacevalueofRs.10each.
2) ThePreferenceShareswillrankinprioritytotheequityshares for repayment of share capital or arrears ofdividendincaseofawindingup.
3) ThePreferenceSharesshallberedeemedatparuponexpiryofaperiodof3yearsfromthedateofallotmentwitharightvestedintheBoardtoredeemearlier.
4) Dividendwillbepaidcumulativelyonlyafteratermofthreeyearsatthetimeofredemption.
5) ThevotingrightsofthepersonsowningthesaidPreferenceShare(s) shall be in accordancewithprovisions of Section 87 of the Companies Act,1956."
"RESOLVED FURTHER THAT forthepurposeofgivingeffecttotheissueorallotmentofsuchRedeemableCumulativePreferenceShares,theBoardbeandisherebyauthorisedtodoall suchacts,deeds,mattersand thingsas itmaythinkfitanddeemnecessarywithpoweronbehalfoftheCompanytosettleanyquestions,difficultiesordoubtsthatmayariseinregardtoanysuchissueorallotmentasitmayinitsabsolutediscretiondeemfit.”
6)To consider and, if thought fit, to passwith orwithoutmodification(s), the following resolution as a SpecialResolution:
“RESOLVED THAT pursuant toSection 31 and all otherapplicableprovisions,ifany,oftheCompaniesAct,1956,theArticlesofAssociationoftheCompanybealteredbysubstitutingthefollowingnewArticleinplaceoftheexistingArticle81thereof:
81.(a)NoticeofeverymeetingoftheCompanyshallbegiven:
(i) toeverymemberoftheCompany,inanymannerauthorisedbysub-sections(1)to(4)ofSection53oftheActand/orbyanyotherprocedureasspecifiedundertheapplicablelawsforthetimebeinginforce,and the rules, regulations,circulars,notifications,guidelinesetc. issued/ tobe issued from time totimebyMinistryofCorporateAffairs,GovernmentofIndia,SecuritiesandExchangeBoardofIndia,StockExchangesoranyothercompetentauthority(ies)inthisregard;
(ii) tothepersonsentitledtoashareinconsequenceofthedeathorinsolvencyofamember,bysendingitthroughthepostinaprepaidletteraddressedtothembyname, or by the title of representativesofdeceased,orassigneesof the insolvent,orbyanylikedescription,attheaddressifany,inIndiasuppliedforthepurposebythepersonsclaimingtobesoentitled,oruntilsuchanaddresshasbeensosuppliedbygivingthenoticeinanymannerinwhichitmighthavebeengivenifthedeathorinsolvencyhadnotoccurred;
(iii)totheAuditororAuditorsforthetimebeingoftheCompanyinanymannerauthorisedbySection53oftheActinthecaseofanymemberormembersoftheCompany;and
(iv)toalltheDirectorsoftheCompany.
ProvidedthatwherethenoticeofameetingisgivenbyadvertisingthesameinanewspapercirculatingintheneighborhoodoftheregisteredofficeoftheCompanyunder sub-section (3) ofSection53oftheAct,thestatementofmaterialfactsreferredtoinsection173oftheActneednotbeannexedtothenoticeasrequiredbythatSectionbutitshallbementionedintheadvertisementthatthestatementhasbeenforwardedtothemembersoftheCompany.
(b)The accidental omission to give notice to or thenon-receiptofnoticebyanymemberorotherpersontowhomitshouldbegivenshallnotinvalidatetheproceedingsatthemeeting."
"RESOLVED FURTHER THAT for the purpose ofgivingeffecttotheresolutiontheBoardbeandisherebyauthorisedtodoallsuchacts,deeds,mattersandthingsasitmayinitsabsolutediscretionthinkfitanddeemnecessary."
ByOrderoftheBoardofDirectorsFor GI ENGINEERING SOLUTIONS LIMITED
DEERAJ NAIRCOMPANY SECRETARY
RegisteredOffice:73A,SDF-III,SEEPZAndheri(E)Mumbai400096
Place:MumbaiDated:August13,2011
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AnnuAl RepoRt 2010-11
noteS:
1. ExplanatoryStatementasrequiredundersection173(2)oftheCompaniesAct,1956isannexedhereto.
2. A MEMBER ENTITLED TO ATTEND AND VOTE ISENTITLEDTOAPPOINTAPROXYTOATTENDANDVOTEINSTEADOFHIMSELFANDTHEPROXYNEEDNOTBEAMEMBER.
3. The instrumentappointingaproxymustbedepositedwiththeCompanyatitsRegisteredOfficenotlessthan48hoursbeforethetimeforholdingtheMeeting.
4. TheCompany’sRegistrarandShareTransferAgentforitsShareRegistryWork(PhysicalandElectronic)areM/s.BigshareServicesPrivateLimitedhavingtheirofficeatE/2,AnsaIndustrialEstate,Saki-ViharRoad,Sakinaka,Andheri(East),Mumbai–400072.
5. TheRegisterofMembersandtheShareTransferBooksof the Company shall remain closed from Saturday,August20,2011toTuesday,August30,2011(bothdaysinclusive)forthepurposeofAnnualGeneralMeeting.
6. Membersholdingsharesinphysicalformarerequestedto advise about change of address toM/s. BigshareServices Private Limited, Company’s Registrar andShare Transfer Agent. Members holding shares inelectronicformarerequestedtointimatetheirrespectiveDepository Participants (DP) about any change ofaddressorBankmandateandnot to theCompanyorRegistrarandShareTransferAgent.
7. Members desiring any information relating toAnnualAccountsoftheCompanyfortheyearendedMarch31,2011arerequestedtowritetotheCompanyatleast5daysbeforethedateofAnnualGeneralMeeting,soastoenablethemanagementtokeepinformationready.
8. Members are requested to bring theAttendance SlipalongwiththeircopyofAnnualReporttotheMeeting.
9. Memberswhoholdshares indematerialised formarerequestedtowritetheirClientIDandDPIDNumbersandthosewhoholdsharesinphysicalformarerequestedtowrite theirFolioNumber in theAttendanceSlip forattendingtheMeeting.
10.Corporatemembers intendingtosendtheirauthorizedrepresentative to attend theMeeting are requestedtosendtotheCompanyacertifiedcopyof theBoardResolutionpursuant toSection187of theCompaniesAct,1956authorizingtheirrepresentativetoattendandvoteontheirbehalfattheMeeting.
11.ConsequentupontheintroductionofSection109AoftheCompaniesAct,1956,Membersareentitledtomakeanominationinrespectofsharesheldbytheminphysicalform.Members desirous ofmaking a nomination arerequestedtosendtheirrequestsinFormNo.2B(whichshallbemadeavailableonrequest)totheRegistrarandShareTransferAgentoftheCompany.Membersholdingsharesinelectronicformmaycontacttheirrespectivedepositoryparticipantsforavailingthesaidfacility.
12.Non- Resident Indian Shareholders are requested toinformtheCompanyimmediatelyabout:
a) Thechange in their residentialstatuson return toIndiaforpermanentsettlement.
b) TheparticularsofNREBankAccountmaintainedinIndiawithcompletenameandaddressoftheBank,ifnotfurnishedearlier.
13.DisclosurepursuanttoClause49oftheListingAgreementwithrespecttotheDirectorseekingre-appointmentattheforthcomingAnnualGeneralMeetingisprovidedintheReportonCorporateGovernanceformingpartoftheAnnualReport
ByOrderoftheBoardofDirectorsFor GI ENGINEERING SOLUTIONS LIMITED
DEERAJ NAIRCOMPANY SECRETARY
RegisteredOffice:73A,SDF-III,SEEPZAndheri(E)Mumbai400096
Place:MumbaiDated:August13,2011
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GI enGIneeRInG SolutIonS lIMIteD
Item No. (4)ThepresentAuthorisedShareCapitaloftheCompanyisRs.8500,00,00,000/-(RupeesEightThousandFiveHundredCroresonly)consistingof850,00,00,000(EightHundredFiftyCrores)EquitySharesofRs.10/-eachandthePaid-upShareCapitaloftheCompanyisRs.8,61,18,780/-consistingof86,11,878EquitySharesofRs.10/-each.
Your Company plans to infuse funds byway of issue ofPreferenceShares.Boardthereforeconsidersitnecessarytore-classify theun-issuedsharecapitalof theCompany intoEquitySharesandPreferenceShares,sothattherewillbeascopeforraisingfinancefortherequirementsoftheCompanyby issue of Preference shares, as andwhen considerednecessary.
By virtue of the same, itwas proposed to re-classify theAuthorized Share Capital in themanner provided in theresolutionabovewithoutaffectingthetotalAuthorisedShareCapitaloftheCompany.
Sincethere-classificationwouldbeeffectedbyalteringtheCapital Clause of theMemorandum of Association of theCompany,whichwouldrequiretheapprovalofmembers inGeneralMeetingbywayofanOrdinaryResolutionpursuanttoSections16and94oftheCompaniesAct,1956,theresolutionat ItemNo. 4 is submitted to theMeeting forMembers’approval.
Your Board of Directors recommends the above enablingresolutionforyourapprovalinthebestinterestoftheCompany.
NoneoftheDirectorsoftheCompanyisinanywayconcernedorinterestedintheresolutionproposedatItemNo.4oftheaccompanyingNotice.
Item No. (5)The Company proposes to issue up to 70,00,000 4.5%RedeemableCumulativePreference shares of face valueofRs.10/-eachtoraisefundstotheextentofRs.7,00,00,000(RupeesSevenCrores only) asmentioned in the proposedSpecialResolutionforgeneralcorporatepurposeandworkingcapitalrequirementoftheCompany.
Accordingly,theMembers’approvalisbeingsoughtpursuanttotheprovisionsofSection80,81(1A)andallotherapplicableprovisions,ifany,oftheCompaniesAct,1956.
TheproposedissuewillimprovetheoverallfinancialpositionoftheCompanyandhenceyourBoardofDirectorsrecommendsthesameforyourapproval.
TheDirectorsoftheCompanymaybedeemedtobeconcernedorinterestedintheSpecialResolutiontotheextentofsecurities
eXplAnAtoRY StAteMent puRSuAnt to SeCtIon 173 (2) oF the CoMpAnIeS ACt, 1956
issued/allottedtotheCompanies/InstitutionsinwhichanyofthemmaybeaDirectororMember.
Item No. (6)TheMinistryofCorporateAffairs(“MCA”),GovernmentofIndiahasvidecircularsdatedonApril21,2011andApril29,2011,taken a “Green Initiative in theCorporateGovernance”, byallowingpaperlesscompliancesbycompanies,andpermittingserviceofdocumentsbyaCompanythroughelectronicmodes.
It has been further clarified that a Companywould havecompliedwithSection53oftheCompaniesAct,1956iftheserviceofdocumenthasbeenmadethroughelectronicmodeprovidedtheCompanyhasobtainede-mailaddressesofitsmembersforsendingthenotices/documentsthroughe-mailby giving an advance opportunity to every shareholder toregistertheire-mailaddressandchangesthereinfromtimetotimewiththeCompany.
WithaviewtoimplementthisgreeninitiativeintheCompanyand send documents like the notice convening theAnnualGeneralMeeting,Audited Financial Statements, Directors’Report,Auditors’Reportetc.hereafter,inelectronicform,tothee-mailaddressprovidedbytheshareholdersand/ormadeavailabletotheCompanybytheDepositories,theBoardofDirectorsof theCompanyhasdecided toalter theexistingprovisionsoftheArticlesofAssociationoftheCompanybyincorporating enabling provisions therein to facilitate suchelectronic distribution of Company correspondences. Thiswillultimately result inyourCompanyandeachoneofourshareholderssupportingthisgreatinitiativeofMCA.
Consideringthebenefitsattachedwiththeuseofelectronicmodeandasamatterofcontributingtothesocietyasawhole,theBoardrecommendsthealterationofArticlesofAssociationasstatedintheSpecialResolutionatItemNo.6.
None of the Directors of the Company is deemed to beconcernedorinterestedintheresolutionproposedatItemNo.6oftheaccompanyingNotice.
ByOrderoftheBoardofDirectorsFor GI ENGINEERING SOLUTIONS LIMITED
DEERAJ NAIRCOMPANY SECRETARY
RegisteredOffice:73A,SDF-III,SEEPZAndheri(E)Mumbai400096
Place:MumbaiDated:August13,2011
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AnnuAl RepoRt 2010-11
DIVIDENDYourDirectors do not recommendany dividend for the yearendedMarch31,2011.
BUSINESS REVIEwYourCompanyachievedaturnoverofRs.137.19lakhsduringtheyearasagainstRs.112.71lakhsinthepreviousyear.TheCompanyincurredalossofRs.163.86lakhsascomparedtolossofRs.57.55 lakhs in thepreviousyear.Management istakingtheappropriatestepstomendthefinancialsituationandimprovetheworkingsoftheCompany.
MANAGEMENT DISCUSSION AND ANALYSISManagement Discussion and Analys is Report forthe year under review, as stipulated under Clause 49of the ListingAgreementwith theStockExchanges in IndiaispresentedinaseparatesectionformingpartoftheAnnualReport.
CORPORATE GOVERNANCETheReportonCorporateGovernanceaspertherequirementsofClause49oftheListingAgreementformspartoftheAnnualReport.TherequisiteCertificatefromtheAuditors,M/s.DixitDattatray&Associates,CharteredAccountantsconfirmingthecompliancewith the conditions of Corporate Governance as per therequirementsofClause49isannexedtothisReport.
SHARE CAPITALDuringtheyearunderreview,theauthorisedandpaidupsharecapitaloftheCompanyremainedunchangedincomparisontopreviousyear.
ALTERATION OF MAIN OBJECTS CLAUSEDuringtheyearunderreview,yourCompanyhasamendeditsmainObjectsClause of theMemorandumofAssociation toincludeandcarryoutthebusinessinPowerSectorwithaviewto diversify its business activities, in addition to its existingbusiness. Your Company had sought your approval throughPostalBallotandhasreceivedtheCertificateofRegistrationoftheSpecialResolution,confirimingAlterationofObjectClausefromtheRegistrarofCompanies,MumbaionDecember1,2010.
SUBSIDIARY COMPANYYourCompanyhasonesubsidiary,viz.M/sGenesysEnterprisesInc.,USA.InaccordancewiththeGeneralCircularissuedbytheMinistryofCorporateAffairs,GovernmentofIndia,theBalanceSheet, Profit and LossAccount and other documents of thesubsidiarycompanyarenotbeingattachedwiththeBalanceSheetof theCompany.TheCompanywillmakeavailabletheAnnualAccounts of the subsidiary companyand the relateddetailedinformationtoanyMemberoftheCompanywhomaybeinterestedinobtainingthesame.Further,theAnnualAccountsofthesubsidiarywouldalsobeavailableforinspectionbyanyMemberattheRegisteredOfficeoftheCompanyduringworkinghoursuptothedateoftheAnnualGeneralMeeting.
CONSOLIDATED FINANCIAL STATEMENTSAs stipulated by Clause 32 of the ListingAgreementwiththeStock Exchanges, the consolidated financial statementshavebeenpreparedby theCompany inaccordancewith theapplicable accounting standards issued by The Institute ofChartered Accountants of India. The audited consolidatedfinancialstatementstogetherwithAuditorsReportformpartoftheAnnualReport.
DearShareholders,
YoursDirectorspresenttheFifthAnnualReportalongwiththeAuditedAccountsofyourCompanyfortheyearendedMarch31,2011.
FINANCIAL RESULTS
SummaryofStandaloneFinancialresultsfortheyearendedMarch31,2011isasunder:-
(`inLakhs)
Particulars Year ended Yearended March 31, 2011 March31,2010
RevenuefromOperations 137.19 112.71
OperatingProfitsbeforeDepreciation,Amortizationandtax (128.74) (30.05)
Less:Depreciationandamortization 21.30 21.35
Profit/(Loss) before tax (150.04) (51.40)
Less:CurrentTax 13.82 6.15
Profit (Loss) After Tax (163.86) (57.55)
DIReCtoRS’ RepoRt
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DIRECTORSIn termsofArticle117of theArticlesofAssociation,Mr.GanapathyVishwanathan,DirectoroftheCompanyretiresbyrotationandbeingeligibleoffershimselfforre-appointmentattheensuingAnnualGeneralMeeting.BriefresumeofMr.GanapathyVishwanathan,natureofhisexpertiseinspecificfunctionalareaandnamesofCompaniesinwhichheisDirectorandMember/ChairmanofCommitteesofBoard,asstipulatedbyClause49oftheListingAgreementareprovidedintheCorporateGovernanceReportformingpartoftheAnnualReport.
AUDITORSM/s.DixitDattatray&Associates,CharteredAccountants,the Statutory Auditors of the Company, bearing ICAIRegistration No.102665Wwill retire at the conclusion ofthe forthcoming Annual GeneralMeeting and are eligiblefor re-appointment. The Audit Committee and your Boardrecommendtheirre-appointmentasAuditorsoftheCompany.TheCompanyhasreceivedaletterfromthemtotheeffectthat their re-appointment, if made, would bewithin theprescribed limitunderSection224 (1B)of theCompaniesAct,1956.
AUDITORS’ REPORTAuditors'commentsintheirreportunderpara4(f)shallbereadwithNoteNo.12inScheduleM(NotesformingpartofAccounts),whichareselfexplanatory.TheCompanyhasnotappointedtheInternalAuditorsasithasadequateandeffectivesystemof internalcontrols forfinancialreporting.
DEPOSITSThe Company has not accepted any depositswithin themeaningofSection58AoftheCompaniesAct,1956duringtheyearunderreview.
PARTICULARS OF EMPLOYEESThe Company does not have any employee drawingremuneration in excess of the limits prescribed, underSection217(2A)oftheCompaniesAct,1956readwiththeCompanies(ParticularsofEmployee)Rules1975,asamendedvide Companies (Particulars of Employees) AmendmentRules,2011duringtheyearunderreview.
PARTICULARS OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN ExCHANGE EARNINGS AND OUTGOInformationpursuanttoSection217(1)(e)oftheCompaniesAct,1956readwithCompanies(DisclosureofParticularsintheReportofBoardofDirectors)Rules,1988,isgiveninthe
prescribedformatasanannexuretothisreport.
DIRECTORS’ RESPONSIBILITY STATEMENT Pursuant to the requirement under Section 217 (2AA)of the Companies Act 1956, with respect to Directors’ResponsibilityStatement,yourDirectorsherebyconfirmthat;a) In the preparation of the annual accounts for thefinancial year endedMarch 31, 2011, the applicableaccounting standards had been followed alongwithproperexplanationrelatingtotheirmaterialdepartures,whereverapplicable;
b) The directors had selected such accounting policiesandappliedthemconsistentlyandmadejudgmentsandestimatesthatarereasonableandprudentsoastogiveatrueandfairviewofthestateofaffairsoftheCompanyattheendofthefinancialyearandoftheprofitorlossoftheCompanyfortheyearunderreview;
c) The directors had taken proper and sufficient care forthe maintenance of adequate accounting records inaccordancewiththeprovisionsof theCompaniesAct,1956forsafeguardingtheassetsoftheCompanyandforpreventinganddetectingfraudandotherirregularities;
d) ThedirectorshadpreparedtheannualaccountsforthefinancialyearendedMarch31,2011onagoingconcernbasis.
ACkNOwLEDGEMENT TheDirectorsexpresstheirsincerethankstotheEmployees,Customers,Suppliers,Company’sBankersandMembersoftheCompanyfortheircontinuedsupport.Your Directors also take this opportunity to thank theRegulatory authorities including Stock Exchanges andGovernment authorities for the business support and co-operationcontinuouslyextendedtotheCompany.
ForandonbehalfoftheBoardofDirectors
SAJID MALIk GANAPATHY VISHwANATHAN Managing Director Director
Place:MumbaiDated:July25,2011
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AnnuAl RepoRt 2010-11
ANNExURE ‘A’ TO THE DIRECTORS’ REPORT
ParticularsofConservationofEnergy,Research&Development,
TechnologyabsorptionandForeignEarningsandOutgoasper
Section 217(1) (e) of theCompaniesAct, 1956 readwith
Companies(DisclosureofParticulars intheReportofBoard
ofDirectors)Rules,1988fortheyearendedMarch31,2009.
CONSERVATION OF ENERGY
Your Company takes variousmeasures to reduce energy
consumptionbyprocuringandimplementinglatesttimerbased
technologyofreputedbrandinHVACsystems.TheCompany
hasbeenreplacingtheolderunitswithnewenergyefficient
unitstoconservetheenergy.Thishelpsinoptimizingenergy
conservation inACs,which is themajor source of power
consumption.AlsoyourCompanykeepspromotinguseofIT
Techniques to reduceplottingandsavepaperconsumption
whichinasmalllittlewaycontributetoGreenInitiatives.
RESEARCH AND DEVELOPMENT
YourCompanywithaviewofenhancingitsexistingcapacity
and providing better services is constantly engaged in the
research and development of newer technologies. Your
Company keeps on developing newer IT processes and
methodologies,whichleadtoimprovedproductivityandbetter
accuracy.Similar ITdevelopmentsarebeingundertakenfor
otherengineeringserviceareasofestimationtoprovidebest
servicestoourcustomers.
TECHNOLOGY ABSORPTION, ADAPTATION, AND
INNOVATION
YourCompanyhasupgradedallserverstocatertothestringent
projectandprocessrequirements.
YourCompanyhasanextensivecommunicationinfrastructure,
whichcaterstodataconnectivitybetweenalltheoffices.
FOREIGN ExCHANGE EARNINGS & OUTGO
The required informationon foreignexchangeearningsand
outgoiscontainedintheNotesformingpartofAccounts.
ForandonbehalfoftheBoardofDirectors
SAJID MALIk GANAPATHY VISHwANATHAN Managing Director Director
Place:MumbaiDated:July25,2011
AnneXuRe ‘A’ to the DIReCtoRS’ RepoRt
GREEN INITIATIVEMinistryofCorporateAffairs(MCA),GovernmentofIndia,hastakenaGreeninitiativeintheCorporateGovernancebyallowingpaperlesscompliancesbytheCompaniesafterconsideringprovisionsoftheInformationTechnologyAct,2000for legalvalidityofcompliancesunderCompaniesAct,1956 throughElectronicModevideCircularNo.17/2011dated April21,2011.MCAhasprovidedthattheCompanywouldhavecompliedwithSection53oftheCompaniesAct,1956,iftheserviceofdocumentshasbeenmadethroughelectronicmodeprovidedthecompanyhasobtainede-mailaddressofitsMembersforsendingthenotice/documentsthroughe-mailbygivinganadvanceopportunitytoeveryshareholdertoregisterhis/here-mailaddressandchangesthereinfromtimetotimewiththeCompany.IncaseswhereanyMembershasnotregisteredhis/here-mailaddresswiththecompany,theserviceofdocumentsetc.willbeeffectedbyothermodesofserviceasprovidedinSection53oftheCompaniesAct,1956.
ThoseMembers,whodesiretoreceivenotice/documentsthroughe-mail,arerequestedtocommunicatetheire-mailIDandchangestheretofromtimetotimetohis/herDepositoryParticipant/theCompany'sRegistrar&ShareTransferAgents,M/s.BigshareServicesPvt.Limited,asthecasemaybe.
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GI enGIneeRInG SolutIonS lIMIteD
1. CORPORATE GOVERNANCECompany’s Philosophy on Corporate Governance GIEngineeringSolutionsLimitedconsidersgoodCorporateGovernanceasaconstantexercise.Intheprocessitisfullycommittedtotheadoptionofbestgovernancepracticesand its adherence in the true spirit, at all times. YourCompanyisguidedbycoreprinciplesofgovernancelikeintegrity, fairness, equity, transparency, accountability,disclosures, commitment to values and compliancesto enhance the value for stakeholders’ viz. customers,shareholders,employees,lenders,vendorsetc.TheBoardconsidersitselfasatrusteeofitsstakeholdersincludingit's shareholders and acknowledges its responsibilitiestowardsthemforsafeguardingtheirinterest.We present hereunder our report on compliance ofGovernanceconditionsspecifiedinClause49oftheListingAgreement(s).
2. BOARD OF DIRECTORS
Composition of the BoardThe Company is managed and controlled through aprofessionalBoardofDirectorscomprisingofacombinationof mandate Executive and Non-Executive IndependentDirectors. The composition of Board of Directors is incompliancewiththeprovisionsofListingAgreementwiththeStockExchangesandtheCompaniesAct,1956.The Board presently consists of four Directors, two ofwhom are Non-Executive Independent Directors as perexistingprovisionsofClause-49oftheListingAgreement.None of the Directors on the Board is a Member ofmore than 10 Committees or Chairman ofmore than 5Committees, across all the companies inwhich he is aDirector.ThenecessarydisclosuresregardingCommitteepositionshavebeenmadebytheDirectors.Attendanceof eachDirector at theBoardMeetings andthe last Annual GeneralMeeting during the year underreviewanddetailsofnumberofoutsideDirectorshipsandCommitteeposition(s)heldbyeachofyourDirectorsaregivenbelow:
CoRpoRAte GoVeRnAnCe RepoRt
Name of Directors Category No. of Attendance Number of Number of Board at Directorship(s) Committee(s) Meetings last held in position held in attended AGM other Public other Companies out of 8 Limited as on March 31, Meetings Companies 2011 held as on March 31, 2011 Member Chairman
Mr.SajidMalik ManagingDirector 7 Yes 4 NIL NIL DIN:00400366 -PromoterGroup
Mrs.SarojaMalik NonExecutiveDirector 8 Yes 2 2 NIL DIN:00400421 -PromoterGroup
Mr.Ganapathy NonExecutive 8 Yes 1 2 2 Vishwanathan Independent DIN:00400518 Director
Mr.GaneshAcharya NonExecutive DIN:00702346 IndependentDirector 7 No 1 2 NIL
Notes:
1. ForthepurposeofcalculatingcommitteemembershipoftheDirectors,PrivateLimitedCompanies,ForeignCompaniesandCompaniesunderSection25oftheCompaniesAct,1956areexcluded.
2. OnlyAuditCommittee,Shareholders/InvestorsGrievanceCommitteeareconsideredforthepurposeofCommittee.
3. Mr.SajidMalikandMrs.SarojaMalikareinter serelatedtoeachother,Mr.SajidMalikbeingthesonofMrs.SarojaMalik.
11
AnnuAl RepoRt 2010-11
Details of Shareholdings
DetailsofEquitySharesheldbyDirectorsasonMarch31,2011
Name No. of Equity Shares
Mr.SajidMalik 1,25,772
Mrs.SarojaMalik 1,20,939
Mr.GanapathyVishwanathan 293
Mr.GaneshAcharya 12,493
Board Functioning & Procedures
TheBoardmeetsatregularintervalsandithasalwaysbeen
theCompany's policy and practice to place allmatters of
importance before theBoard apart frommatters requiring
Board’sapprovalbyStatutes.
TheScheduleofeachoftheBoardMeetingisdecidedwellin
advanceandcommunicatedtotheDirectors.BoardMeetings
aregenerallyheldat theRegisteredOfficeof theCompany.
TheAgendaalongwiththeExplanatoryNotesaresenttothe
Directorswell in advance to enable them to take informed
decisions.
DuringthefinancialyearendedMarch31,2011,eight(8)Board
MeetingswereheldonApril29,2010;July12,2010;July
31,2010;August20,2010;September29,2010;November
13,2010;November18,2010andFebruary14,2011.The
intervalbetweenanytwoMeetingswasnotmorethanfour
calendarmonths.
Brief Resume of Director who is proposed to be re-
appointed
AbbreviatedresumeoftheDirectoroftheCompanyseeking
re-appointment
NameofDirector Mr.GanapathyVishwanathan
NatureofResolution Re-appointmentasDirector
DateofBirth March27,1964
DateofAppointment August10,2006
DirectorIdentificationNumber 00400518
Qualifications ACA,ICWA,CS-FinalPassed
Experienceinspecific Expertiseinallareasoffunctionalareas corporatefinance,capital markets&corporategovernance
Directorshipheldinother i) GenesysInternationalcompanies(includingforeign corporationLimitedcompaniesandprivate ii) VenturaCommoditiesPvt.companies) Ltd. iii) DivineInvestment
AdvisorsPvt.Ltd. iv) DivineVenturePvt.Ltd. v) Robinhood Insurance
BrokerPvt.Ltd. vi) JasparHoldingsPvt.Ltd. viii) ViceroyIndustriesPvt.Ltd
Chairman/Memberof GenesysInternational
Committeesofother CorporationLimited
Companies Chairman:-
AuditCommittee
RemunerationCommittee
Shareholders’/Investors’
GrievanceCommittee
NumberofEquityShares 293
heldintheCompany
Mr. Ganapathy Vishwanathan, Director
Mr.GanapathyVishwanathan is aMember of the Institute
of Chartered Accountants of India, the Institute of Cost
andWorks Accountants of India and has passed Final
ExaminationoftheInstituteofCompanySecretariesofIndia.
He hasmore than 18 years of experience in Investment
BankingwithafocusonCapitalMarket,InsuranceBusiness,
thethrustareasbeingCorporateStructuring/Re-structuring,
Syndication and IssueManagement. He hadworkedwith
CanbankFinancialServicesLtd.,whichwasleadinginvestment
bankandthereafterwithIndGlobalFinancialTrustLtd.,alead
MerchantBanker.HewasalsotheWhole-timeDirectorofone
ofthelargesecuritiesBrokinghouse,VenturaSecuritiesLtd.
He is promoter of InsuranceBrokingCompany, Robinhood
InsuranceBrokerPvt.Ltd.
Hehasmade immensecontribution to thedecisionmaking
processattheBoardMeetingsoftheCompany.
12
GI enGIneeRInG SolutIonS lIMIteD
3. COMMITTEES OF THE BOARD
A. AUDIT COMMITTEE
TheBoardconstitutedAuditCommitteeofyourCompany
which presently comprises of the three Non-Executive
Directors/ Independent Directors viz; Mr. Ganapathy
Vishwanathan,Mr.GaneshAcharyaandMrs.SarojaMalik.
Mr.GanapathyVishwanathanistheChairmanoftheAudit
Committee. Hewas present at the last Annual General
MeetingoftheCompanytoanswerShareholders’queries.
TheCompanycontinuestoderive immensebenefits from
thedeliberationsoftheAuditCommittee.TheMembersof
theCommitteepossessvastexperienceandhaveadequate
knowledge in accounts, finance and principles of good
governance.MinutesofeachAuditCommitteemeetingare
placedanddiscussedintheMeetingoftheBoard.
ThetermsofreferencestipulatedbytheBoardtotheAudit
Committeeare,interalia,ascontainedinClause49ofthe
ListingAgreementandSection292AoftheCompaniesAct,
1956asfollows:
a. OversightofCompany'sfinancialreportingprocessand
disclosureofitsfinancialinformation.
b. Reviewwith themanagement, quarterly and annual
financialstatementsandrelatedpartytransactions.
c. ReviewtheCompany'sfinancialandriskmanagement
policies.
d. Review with the management and auditors, the
adequacyofinternalcontrolsystems.
e. Reviewthefinancialstatementsofsubsidiarycompany.
f. Recommend to the Board the appointment, re-
appointment and removal of the Statutory Auditor,
fixationoftheirremuneration.
g. Discussionwithauditorsaboutnatureandscopeofaudit
aswellaspostauditdiscussiontoascertainanyarea
ofconcernandinternalcontrolweaknessesobserved
bytheStatutoryAuditors.
h. Review ofManagement Discussion and Analysis of
financialconditionandresultsofoperations.
i. Suchothermattersasmayfromtimetotimeberequired
by any statutory, contractual or other regulatory
requirementstobeattendedtobytheAuditCommittee.
DuringtheyearunderreviewfiveMeetingsoftheCommittee
wereheldonthefollowingdates:
April29,2010;July12,2010;July31,2010;November13,
2010andFebruary14,2011.
AlltheMembersoftheCommitteewerepresentinallthe
Meetingsheld.TheCompanySecretaryactsasSecretary
totheCommittee.
B. SHAREHOLDERS’ / INVESTORS’ GRIEVANCE COMMITTEE
The Shareholders/Investors ' Grievance Committee
comprises of three Members namely Mr. Ganapathy
Vishwanathan, Mr. Ganesh Acharya and Mrs. Saroja
Malik.Mr. Ganapathy Vishwanathan is the Chairman of
the Shareholders/ Investors Grievance Committee. The
Committee approves share transfers and transmissions,
issue of duplicate certificates and reviews investors’
gr ievances and al l other matters connected with
securities. The Committee oversees the performance of
theRegistrarandShareTransferAgentand recommends
measuresforoverallimprovementofthequalityofinvestors’
service.
The committeemet seven times during the year under
reviewandtheMeetingswereheldonApril9,2010;April
29, 2010; June 15, 2010; July 16, 2010, July 31, 2010;
November13,2010andFebruary14,2011.
ThedetailsoftheattendancebytheCommitteeMembers
areasfollows:
13
AnnuAl RepoRt 2010-11
Sr. Name of the Member No. of No. of
No. meetings Meetings
held attended
1 Mr.GanapathyVishwanathan 7 7
-Chairman
2 Mr.GaneshAcharya 7 6
3 Mrs.SarojaMalik 7 7
TheCompanySecretary,actsasSecretarytotheCommittee.
During the year under review, your Company has not
receivedanycomplaintsfrominvestors.
C. REMUNERATION COMMITTEE (non mandatory)
TheRemunerationCommitteecomprisesofthreeMembers
namelyMr.GanapathyVishwanathan,Mr.GaneshAcharya
andMrs. Saroja Malik. Mr. Ganapathy Vishwanathan
is the Chairman of the Committee. The Committee
is entrusted with the responsibility of approving the
appointment and remuneration plan and commission /
incentives payable to the Directors of the Company and
such othermatters as the Boardmay from time to time
request the Remuneration Committee to examine and
recommend/approve.NoMeetingwasheldduringtheyear
under review.TheCompanySecretary,actsasSecretary
totheCommittee.
4. SUBSIDIARY COMPANY
YourCompanydoesnothaveanyIndianSubsidiaryCompany.
TheAuditCommitteereviewsthe financialstatementsof
overseasunlistedsubsidiarycompany.
5. CODE OF CONDUCT FOR PREVENTION OF INSIDER
TRADING
TheCompanyhasinplaceaCodeofConductforprevention
of Insider Trading based on SEBI (Insider Trading)
Regulations,1992.ThisCodeisapplicabletoallDirectors/
Designated employees. The Code ensures prevention of
dealing in Company’s shares by person having access
to unpublished price sensitive information. All the Board
Membersandseniormanagementpersonnelhaveconfirmed
compliancewith the Code. A declaration signed by the
ManagingDirectorisattachedandformspartoftheAnnual
ReportoftheCompany.
6. DISCLOSURES
(A) Basis of related party transaction
There have been nomaterially significant related party
transactions during the year ended March 31, 2011
thatmay have potential conflictwith the interest of the
Company at large. The materially significant related
party transactions that may have potential conflict
withtheinterestoftheCompanyatlarge,ifany,arereported
toAuditCommittee.
Detailsoftransactionwithrelatedpartiesarereflectedin
theannualaccountsunderthehead"NotestoAccounts".
(B) Strictures or penalties imposed
There has been no cases of penalties or strictures been
imposedontheCompanybyStockExchange(s)orSEBIor
anyStatutoryAuthorityonanymatters related tocapital
marketsduringthelastthreeyears.
(C) Risk Management
The Company has a framework wherein the Board
Members are informed about the risks and procedures,
if any tominimize the same. They are also reviewed by
the Audit Committee / Board to ensure that executive
management controls risk throughmeans of a properly
definedframework.
(D) Audit Qualifications/Adverse Remarks
TheManagementhas replied to theauditqualifications /
adverseremarksinDirectors'Report.
14
GI enGIneeRInG SolutIonS lIMIteD
TheresultsofthePostalBallotwasdeclaredbytheBoardofDirectorsatitsmeetingheldonNovember18,2010.
TheprocedurefollowedforPostalBallotwasaspersection192AoftheCompaniesAct,1956andRulesmadethereunder
namelyCompanies(PassingoftheResolutionbyPostalBallot)Rules,2001.NoResolutionisproposedtobepassedthrough
PostalBallotintheforthcomingAnnualGeneralMeeting.
7. OTHER DISCLOSURES
A. Details of General Meetings and Special Resolutions passed
AnnualGeneralMeetings(AGM)heldduringthepast3yearsandtheSpecialResolution(s)passedtherein:
YEAR LOCATION DATE & TIME SPECIAL RESOLUTION(S) PASSED
2007-2008 KohinoorContinental,Andheri-KurlaRoad,September29,2008 NIL
Andheri(East),Mumbai-400059. 3.15p.m.
2008-2009 KohinoorContinental,Andheri-KurlaRoad, September29,2009 NIL
Andheri(East),Mumbai-400059. 3.15p.m.
2009-2010 MiradorHotel,NewLinkRoad, September30,2010 NIL
Opp.SolitareCorporatePark,Chakala, 3.15p.m.
Andheri(East),Mumbai-400059
B. Extraordinary General Meetings held during the past 3 years:
YEAR LOCATION DATE & TIME SPECIAL RESOLUTION(S) PASSED
2009-2010 KohinoorContinental,Andheri-KurlaRoad,December30,2009 a)IncreaseofAuthorisedShare
Andheri(East),Mumbai-400059. 3.30p.m. CapitalfromRs.8crorestoRs.8500crores
b)IssueofEquityShareonPreferentialbasis
C. Postal Ballot conducted during the year under review:
DATE OF DESCRIPTION % OF VALID VOTES SCRUTINIZER FOR CONDUCTING
BOARD IN FAVOUR OF THE POSTAL BALLOT
MEETING THE RESOLUTION
September29, AlterationofObjectsClausein 99.99 Mr.NarayanParekh,PartnerofM/sPRS
2010 MemorandumofAssociationofthe Associates,PracticingCompany
CompanyunderSection17,18and149 Secretaries,Mumbai
(2A)oftheCompaniesAct,1956
15
AnnuAl RepoRt 2010-11
8. CEO/CFO CERTIFICATION:
AsrequiredunderClause49VoftheListingAgreementwith
theStockExchanges, theManagingDirectorand theChief
FinancialOfficeroftheCompanyhavecertifiedtotheBoard
regardingtheFinancialStatementsfortheyearended31st
March,2011.
9. STATUS OF COMPLIANCE OF NON MANDATORY
REQUIREMENT
• Remuneration Committee:
The Company has a Remuneration Committee consisting
of onlyNon-Executive Directors. A detailed note on the
RemunerationCommitteeisprovidedelsewhereinthisreport.
• Communication to shareholders
Thequarterly,half-yearlyandyearly financial resultsof the
CompanyaresenttotheStockExchangesimmediatelyafter
theseareapprovedbytheBoard.Thesearewidelypublished
intheFreePressJournal(English)andNavshakti(Marathi)
newspapers.Theseresultsaresimultaneouslypostedonthe
websiteoftheCompanyatwww.giesl.com.
• whistle Blower Policy
ThoughthereisnoformalWhistleBlowerPolicy,thecompany
takes cognizanceof the complaintsmade and suggestions
givenbytheemployeesandothers.
10. GENERAL SHAREHOLDERS INFORMATION
A. Registered Office:
73-A,SDF-III,SEEPZ,Andheri(East),Mumbai400096.
Tel:91.22.44884488,
Fax:91.22.28290603
Website:www.giesl.com
B. Registrar & Share Transfer Agent:
BigshareServicesPrivateLimited
Unit:GIEngineeringSolutionsLimited
E/2,AnsaIndustrialEstate,Saki-ViharRoad,Saki-Naka,
Andheri(East),Mumbai400072.
Tel:91.22.40430200
Fax:91.22.28475207
Email:[email protected]
C. Investors CorrespondenceMr.DeerajNair,CompanySecretaryandComplianceOfficerGIEngineeringSolutionsLimited73-A,SDFIII,SEEPZ,Andheri(East),Mumbai–400096Tel:91.22.44884488Fax:91.22.28290603Email:[email protected]
D. Annual General Meeting:Day&Date:Thursday,September22,2011Time:3.00p.m.Venue: Kohinoor Continental, Andheri-Kurla Road,Andheri(East),Mumbai-400059
E. Book Closure:TheRegister ofMembers andShare TransferBooks of theCompanyshallremainclosedfromAugust20,2011toAugust30,2011(bothdaysinclusive)forpurposeofAnnualGeneral
Meeting.
F. Listing on Stock Exchanges:
TheEquitySharesoftheCompanyarelistedonthefollowing
StockExchanges:
Name of Stock Symbol /
Exchanges Scrip Code ISIN
NationalStockExchange GISOLUTION INE065J01016
ofIndiaLimited(NSE)
ExchangePlaza,
BandraKurlaComplex,
Bandra(E),Mumbai-400051
BombayStockExchange 533048 INE065J01016
Limited(BSE)
PJTowers,DalalStreet,
Fort,Mumbai-400001
TheAnnualListingfeestoboththeStockExchangeshavebeen
paidaspertheirschedule.
G. Market Price Data:
ThehighandlowmarketpriceoftheEquitySharesofRs.10/-
eachduringtheyear2010-11attheBombayStockExchange
Limited(BSE)andNationalStockExchangeofIndiaLimited
(NSE)wereasunder:
16
GI enGIneeRInG SolutIonS lIMIteD
Month BSE NSE High(Rs.) Low(Rs.)High(Rs.) Low(Rs.)April,2010 21.90 16.50 19.31 18.25May,2010 19.80 14.45 17.74 16.37June,2010 24.50 15.65 20.17 18.61July,2010 33.95 19.40 26.87 24.64August,2010 29.90 23.00 27.42 26.00September,2010 30.80 23.10 25.40 24.11October,2010 26.50 20.25 24.05 22.78November,2010 43.45 20.40 32.43 29.72December,2010 30.80 21.90 26.21 24.97January,2011 28.70 20.45 24.57 23.50February,2011 21.45 16.30 18.84 18.08March,2011 20.70 15.60 18.27 16.89
H. Performance of Equity Shares:PerformanceoftheCompany’ssharesincomparisontoBSESensexisgiveninthechartbelow:
*basedonclosingPriceonLastTradingdayoftheMonth
I. Distribution of Shareholding:DistributionScheduleoftheEquitySharesasonMarch31,2011isgivenbelow:-
J. Shareholding Pattern:TheshareholdingofdifferentcategoriesoftheshareholdersasonMarch31,2011isgivenbelow:
k. Dematerialization of shares:About85.20%of thetotalEquityShareCapitalwasheld indematerializedformasonMarch31,2011.
L. Share Transfer System:Thesharesinphysicalformwhicharelodgedfortransferareprocessed,registeredandreturnedbytheRegistrarandShareTransferAgentwithinthestipulatedtime,ifthedocumentsareinorderinallrespects.
M. Plant Location:TheCompanyisintothebusinessofEngineering&ITsolutionsandhencedoesnotrequireanymanufacturingplantsbutithasdevelopmentcentreinIndia.TheaddressofthedevelopmentcentreoftheCompanyisgivenelsewhereintheAnnualReport.
N. Financial Calendar 2011-2012
Firstquarterlyresults August2011Secondquarterly/Halfyearlyresults October2011Thirdquarterlyresults January2012Fourthquarterlyresults May2012AnnualGeneralMeetingfortheyearendingonMarch31,2012 August2012
Description Number of Number of % to Shareholders Shares TotalPromoters 5 33,95,177 39.42IndependentDirectors&theirrelatives 3 12,978 0.15MutualFund 4 4,050 0.05BodyCorporate 211 7,04,845 8.18FIIs 0 0 0NRIs 20 59620 0.69OCBs 1 25 0.00Individual/Trust 3,845 33,30,301 38.67ClearingMember 14 4,882 0.06ForeignCompany(Public) 1 11,00,000 12.77Total 4104 86,11,878 100
No. of Equity Shareholders Share CapitalShares held Number % to Amount % to Total in Rs Total0001-5000 3086 75.20 52,71,790 6.125001-10000 430 10.48 36,93,330 4.2910001-20000 248 6.04 38,63,290 4.4920001-30000 89 2.17 22,68,440 2.6330001-40000 53 1.29 18,92,430 2.2040001-50000 51 1.24 24,57,690 2.8550001-100000 76 1.85 55,85,420 6.49100001&above 71 1.73 6,10,86,390 70.93Total 4104 100.00 8,61,18,780 100.00
17
AnnuAl RepoRt 2010-11
TheBoardofDirectors
GI Engineering Solutions Limited
Wehavereviewedthefinancialstatements,readwiththecash
flowstatementofGIEngineeringSolutionsLimitedfortheyear
endedMarch31,2011andthattothebestofourknowledge
andbelief,westatethat;
a) (i) These statements do not contain anymaterially
untrue statement or omit anymaterial fact or
containstatementsthatmaybemisleading;
(ii) Thesestatementstogetherpresentatrueandfair
viewoftheCompany’saffairsandareincompliance
withtheexistingaccountingstandards,applicable
lawsandregulations.
b) Thereare, to thebestofour knowledgeandbelief, no
transactionsenteredintobytheCompanyduringtheyear,
whicharefraudulent,illegalorviolationoftheCompany’s
CodeofConduct.
c) Weacceptresponsibilityforestablishingandmaintaining
internal controls for financial reporting.We have
evaluated theeffectivenessof internalcontrolsystems
of the Company pertaining to financial reporting and
havedisclosedtotheAuditorsandtheAuditCommittee,
deficiencies in thedesignoroperationofsuch internal
controls, if any, ofwhichweare aware and the steps
we have taken or proposing to take to rectify these
deficiencies.
d) We have indicated to the Auditors and the Audit
Committee:
(i) Significantchangesininternalcontroloverfinancial
reportingduringtheyear;
(ii) Significant changes in accounting policies during
theyearandthatthesamehavebeendisclosedin
thenotestothefinancialstatements;and
(iii) Instances of significant fraud ofwhichwe have
Ceo/ CFo CeRtIFICAtIon
becomeawareandtheinvolvementtherein,ifany,of
themanagementoranemployeehavingasignificant
roleintheCompany’sinternalcontrolsystemover
financialreporting.
Yourssincerely,
SAJID MALIk SANJAY VIDwANSManagingDirector ChiefFinancialOfficer
Place:MumbaiDated:July25,2011
DECLARATION UNDER CLAUSE 49 OF THE LISTING AGREEMENT
TheMembersof
GIEngineeringSolutionsLimited
Sub:Declarationunderclause49oftheListingAgreement
IherebydeclarethatallDirectorsandDesignatedEmployees
intheSeniorManagementof theCompanyhaveconfirmed
compliancewith theCodeofConduct for the financialyear
endedMarch31,2011.
ForGI ENGINEERING SOLUTIONS LIMITED
SAJID MALIk
MANAGINGDIRECTOR
Place:Mumbai
Dated:July25,2011
18
GI enGIneeRInG SolutIonS lIMIteD
ToTheMembersof
GI Engineering Solutions Limited
WehaveexaminedthecomplianceoftheconditionsoftheCorporateGovernancebyGIEngineeringSolutionsLimited(“the
Company”)forthefinancialyearendedon31stMarch,2011asstipulatedinClause49oftheListingAgreementoftheCompany
withtheStockExchanges.
ThecomplianceofconditionsofCorporateGovernanceistheresponsibilityoftheManagement.Ourexaminationwaslimitedto
reviewofproceduresandimplementationthereof,adoptedbytheCompanyforensuringcompliancewiththeconditionsofthe
CorporateGovernance.ItisneitheranauditnoranexpressionofopiniononthefinancialstatementsoftheCompany.
Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,wecertifythattheCompanyhas
compliedwiththeconditionsofCorporateGovernanceasstipulatedintheabovementionedListingAgreement.
WefurtherstatethatsuchcomplianceisneitheranassuranceastothefutureviabilityoftheCompanynortheefficiencyor
effectivenesswithwhichtheManagementhasconductedtheaffairsoftheCompany.
For DIxIT DATTATRAY & ASSOCIATES, Chartered AccountantsFirm Registration No. : 102665w
D. B. DIxIT ProprietorMembershipNo40032Place : MumbaiDated:25
th,July,2011
CERTIFICATE
RepoRt oF the AuDItoRS on CoRpoRAte GoVeRnAnCe
19
AnnuAl RepoRt 2010-11
MAnAGeMent DISCuSSIon AnD AnAlYSIS
INDUSTRY OVERVIEw
With thegradual recoveryofeconomicconditionsglobally,
theengineeringservices industry ismovingaheadwithbig
sizeagreementsreachedwithIndiancompanies.Furtherthis
businessisexpectedtoincreasebyatleast25%inthenext
twotofiveyears.India,ChinaandEasternEuropewillbethe
most favored outsourcing destinations. The total offshore
engineeringspendisexpectedtogrowto$150-$225billion
bytheyear2020,andIndiawithitstalentpoolandexisting
experience inengineeringservices, iswellsuited to takea
majorchunkofthis.
OPPORTUNITIES AND THREATS
Indiahasalwaysenjoyed thebenefitofhaving lowcostof
productionandavailabilityofskilledworkers.Theuniversal
conceptofcostmeasure isthesinglefactorofoutsourcing
isalsonowbeingaddedwithqualityconcept.Thischange
hasreducedtheimpactoflowcostcompetitionwithcountry
havinghighpercentageofskilledlabour.Theexistingfavorable
factorslikegovernmentinitiatives, infrastructure,andboost
forInformationTechnologyandalliedareascontinuetobethe
mainfactorsforIndia’ssuccessintheIndustry.
Theintensecompetitionsfromtheemergingmarkets,foreign
exchange fluctuation, high rate of attrition, technology are
someofthechallengeswhicharebeingfacedbytheIndustry.
YourCompanyhasinpasthandledsuchsituationwithease
andhastakenmoreinitiativeswhichmayreduceanyadverse
impactonthebusinessoperations
RISkS AND CONCERNS
TheCompanyfacesRisksandConcernswhicharecommon
toourkindofoperationsare:
INTERNAL FACTORS:
1. Availabilityofskilledresources
2. Retentionofskilledemployees
3. Scaleofoperations
4. Internationalanddomesticcompetition
5. Technologicalchanges
ExTERNAL FACTORS:
1. Politicaloppositiontooffshoreoutsourcing
2. Politicalinstability
3. GovernmentPolicies
4. ForeignExchangeFluctuations
5. Recessionintheoverseasmarket
INTERNAL CONTROL SYSTEM AND ITS ADEQUACY
TheCompany has put necessary processes and system in
placeinordertoeffectivelycontrolandmonitoritsoperations.
Such processes, etc., cover entire gamut of corporate
operations, namely, production / development, purchase,
sales,authorization,andentirelegofsupportservices.Review
ofprocesses/outcomeofprocessestakeplaceonmonthly
basisbythetopmanagementoftheCompany.
Havingregardtothenatureandsizeoftheoperationsofthe
Company, themanagement believes, the internal control
processesinplace,areadequatetotakecareofthecurrent
need.
DISCUSSION ON FINANCIAL PERFORMANCE
LIABILITIES AND ASSETS
SHARE CAPITAL
Issued,SubscribedandPaid-upShareCapitaloftheCompany,
comprisingof8,611,878equitysharesofRs.10each,stoodat
Rs.86,118,780asonMarch31,2011.Therehasbeennofresh
issueofsharesduringtheyearunderreport.
RESERVES AND SURPLUS
Reserves and Surplus consists of balance in the General
Reserve,SecurityPremiumAccount,besidesdebitbalance
in the exchange fluctuation reserve account arising out of
consolidation.
Balance in General ReserveAccount and Share Premium
20
GI enGIneeRInG SolutIonS lIMIteD
AccountasonMarch31,2011stoodatRs.2,998.48lacsand
Rs88Lacswhichwassameasthebalanceattheendofthe
previousyear.Exchange fluctuation reserve isRs. (155.33)
lacs(PreviousyearRs.(134.57)lacs).
DebitbalanceofProfit&LossAccountasonMarch31,2011,
stoodatRs.718.24lacsascomparedtopreviousyearofRs
541.07lacs.
SECURED AND UNSECURED LOANS
During the year Company has not availed any secured or
unsecuredloan.
FIxED ASSETS
TherehasbeennochangeinGrossBlockattheendofFinancial
Year2010-11beingRs.772.03lacs.NetBlockattheendofthe
sameperiodisreportedatRs.244.41lacsasagainstRs.265.71
lacsinthepreviousyear.
TheCompanyfollowsstraight-linemethodofdepreciationas
perprovisionofScheduleXIVof theCompaniesAct,1956.
However,with regard to data processing equipments, the
Companyprovidesdepreciationatanacceleratedratetomatch
withtheusefullifeoftheassets.
SUNDRY DEBTORS
SundryDebtors, net of provisions, if any, as onMarch31,
2011,wasatRs2066.96asagainstRs.2,064.21lacsatthe
endofearlieryear.
CASH AND BANk BALANCE
TotalcashandbankbalanceasonMarch31,2011,wasat
Rs48.22LacsasagainstRs.3.95lacsintheearlieryear.The
Companymaintainssuchbalancesincurrent,fixeddepositand
EEFCaccountswithnationalizedandotherscheduledbanks.
LOANS AND ADVANCES
Loans and advances represent cash outlay againstwhich
benefitsarebeingreceivedorexpectedtobereceivedbythe
Companyinfutureandinclude:
-Depositsforutilityservicesandfacilities
-Advanceincometaxpaidandtaxdeductedatsource
-Prepaidexpenses
-Advancetosubsidiarycompany/otherbodiescorporate
As onMarch 31, 2011, Loans andAdvanceswas at Rs
1418.75ascomparedtoRs.1369.66lacsinpreviousyear.
CURRENT LIABILITIES AND PROVISIONS
Current Liabilities and Provisions primarily include trade
creditors,taxdeductedatsourcependingdepositwiththe
government as on the balance sheet date, provision for
employeesbenefits,etc.
Total of Current Liabilities and Provision as onMarch 31,
2011stoodatRs704.25ascompared topreviousyearof
Rs.431.51lacs.
INCOME & ExPENDITURE
INCOME
During2010-11,theCompanyrecordedatotalincomeofRs
188.38ascomparedtopreviousyearofRs175.79lacs.For
theyearunderreportlosshasincreasedfromRs.65.60lacs
in2009-10toRs177.17lacs.Thisismainlyonaccountof
writeoffofpreliminaryexpensesincurredinthecurrentyear.
ExPENDITURE
TheCompanyincurredtotaloperatingcostofRs347.56lacs
including depreciation as against previous year Rs.231.10
lacs.
CAUTIONARY STATEMENT
CertainstatementsmadeintheManagementDiscussionand
AnalysisReportmayconstitute ‘forward-looking-statements’
withinthemeaningofapplicablelawsandregulations.Actual
resultsmaydiffer fromsuchexpectations,projections, etc.,
whether express or implied. Several factors couldmake a
significant difference to theCompany’s operations. These
includeclimateandeconomicconditionsaffectingdemandand
supply,governmentregulationsandtaxation,naturalcalamities,
etc.overwhichtheCompanydoesnothaveanydirectcontrol.
21
AnnuAl RepoRt 2010-11
RepoRt oF the AuDItoRS to the ShAReholDeRS oF GI enGIneeRInG SolutIonS lIMIteD
1. We have audited the attached Balance Sheet of GIEngineeringSolutionsLimitedasat31stMarch2011andalsotheProfitandLossAccountandCashFlowStatementoftheCompanyfortheyearendedonthatdate, annexed thereto. These financial statementsaretheresponsibilityoftheCompany’smanagement.Our responsibility is to expressanopinionon thesefinancialstatementsbasedonouraudit.
2. WeconductedourauditinaccordancewiththeauditingstandardsgenerallyacceptedinIndia.Thosestandardsrequiresthatweplanandperformtheaudittoobtainreasonable assurance about whether the financialstatements are free of material misstatement. Anaudit includes examining, on a test basis, evidencesupportingtheamountsanddisclosuresinthefinancialstatements. An audit also includes assessing theaccountingprinciplesusedandsignificantestimatesmadebymanagement,aswellasevaluatingtheoverallfinancialstatementpresentation.Webelievethatourauditprovidesareasonablebasisforouropinion.
3. AsrequiredbytheCompanies(Auditor’sReport)Order,2003(asamended),issuedbytheCentralGovernmentofIndia,intermsofSection227(4A)oftheCompaniesAct,1956,weannexheretoastatementonthemattersspecifiedinparagraphs4and5ofthesaidOrder.
4. FurthertoourcommentsintheAnnexurereferredtoinparagraph3above,wereportthat:
a) We have obtained all the information andexplanations,whichtothebestofourknowledgeandbeliefwerenecessaryforthepurposesofouraudit;
b) In our opinion, proper books of account asrequiredbylawhavebeenkeptbytheCompanysofarasappearsfromourexaminationofthosebooks;
c) TheBalanceSheet,ProfitandLossAccountandCashFlowStatement dealtwith by this reportareinagreementwiththebooksofaccount;
d) Inouropinion,theBalanceSheet,ProfitandLossAccountandCashFlowStatementdealtwithbythis report readwith our comments in para (f)below complywith the Accounting Standardsreferred to in sub section (3C) of Section 211
of the Companies Act, 1956, to the extentapplicable;
e) OnthebasisofwrittenrepresentationsreceivedfromallthedirectorsoftheCompanyasat31stMarch,2011,andtakenonrecordbytheBoardofDirectors,andtheinformationandexplanationsasmade available to us by the Company,wereportthatnoneofthedirectorsoftheCompanyisprimafacie,haveanydisqualificationsasreferredtoinclause(g)ofsubsection(1)ofsection274oftheCompaniesAct,1956onthesaiddate;
f) Attention is invited to note no 12 in ScheduleMregardingnonprovisionfordiminutioninthevalueofinvestmentsinsubsidiarycompany,forreasonsmentionedtherein.
g) Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,thesaidaccountsreadtogetherwiththesignificantaccountingpoliciesandnotesthereon,givetheinformationrequiredbytheCompaniesAct,1956inthemannersorequiredandgiveatrueandfairviewinconformitywiththeaccountingprinciplesgenerallyacceptedinIndia:
• inthecaseoftheBalanceSheet,oftheStateofAffairsoftheCompanyasat31stMarch2011;
• inthecaseoftheProfitandLossAccount,oftheLossfortheyearendedonthatdate;and
• inthecaseoftheCashFlowStatement,oftheCashFlowsfortheyearendedonthatdate.
For DIxIT DATTATRAY & ASSOCIATES, Chartered Accountants Firm Registration Number: 102665w
D. B. DIxIT ProprietorMembershipNo40032
Place:MumbaiDated:25
thJuly,2011
22
GI enGIneeRInG SolutIonS lIMIteD
(ReferredtoinParagraph3ofourReportofevendateontheAccounts for the year ended31stMarch2011ofGIEngineeringSolutionsLimited)
1. a) The Company has maintained proper recordsshowing full particulars, including quantitativedetailsandsituationoffixedassets.
b) Thefixedassetshavebeenphysicallyverifiedbythemanagementduringtheyear.Asinformedtous, nomaterial discrepancieswere noticed onsuch verification. In our opinion, frequency ofverificationisatreasonableintervals.
c) During the financial year, the Company has notdisposed off any substantial part of the fixedassets
2 TheCompany’snatureofoperationsdoesnotrequireittoholdinventories.Consequently,clause4(ii)oftheCompanies(Auditor’sReport)Order,2003,asamended(‘TheOrder’)isnotapplicable.
3. TheCompanyhasneithergrantednortakenanyloans,secured or unsecured to/from companies, firms orotherparties listed in the registermaintainedundersection301oftheCompaniesAct,1956.Hencetheprovisionsofclauses(iii)(b)to(iii)(g)ofparagraph4oftheOrderarenotapplicabletotheCompany.
4. There are adequate internal control procedurescommensuratewiththesizeoftheCompanyandthenatureofitsbusinesswithregardtopurchaseoffixedassetsandforsaleofservices.Duringthecourseofouraudit,wehavenotobservedanycontinuingfailuretocorrectmajorweaknessesininternalcontrols.
5. a) The particulars of contracts and arrangementsreferredtoinsection301oftheCompaniesAct1956havebeenenteredintheregistermaintainedundersection301ofthesaidAct.
b) Thetransactionsmadeinpursuanceofcontractsorarrangementsenteredintheregistermaintainedundersection301of theCompaniesAct,1956andexceedingthevalueofrupeesfivelakhsinrespectofanypartyduringtheyearhavebeenmade at prices which are reasonable having
regardtotheprevailingmarketpricesandotherrelevantfactorsatthetimeoftransaction.
6. TheCompanyhasnotacceptedanydepositsfromthepublicandconsequentlytheprovisionsofsection58Aand58AAoftheCompaniesAct,1956andtherulesframedthereunderarenotapplicable.
7. TheCompanydoesnothaveaninternalauditsystem.
8. As explainedno cost records havebeenprescribedby theCentralGovernmentunderclause (d)ofsub-section(1)ofsection209oftheCompaniesAct,1956inrespectoftheactivitiescarriedoutbytheCompany.
9. a) The Company has been generally regular indepositingundisputedstatutoryduesapplicabletoit,withtheappropriateauthorities.Thereareno arrears of outstanding statutory dues as attheyearendforaperiodofmorethansixmonthsfromthedatetheybecamepayable.
b) According to the information and explanationsgiventous,therearenoduesofincometax,salestax,servicetax,customsduty,wealthtax,excisedutyandcesswhichhavenotbeendepositedonaccountofanydispute.
10. TheCompanyhasaccumulated lossesat theendoftheyear.TheCompanyhasincurredcashlossesinthecurrentfinancialyearandinthepreviousfinancialyear.
11. TheCompanyhasnotdefaultedinrepaymentofduestoanyfinancialinstitution,bankordebentureholders.
12. The Company has not granted loans and advancesonthebasisofsecuritybywayofpledgeofshares,debenturesandothersecurities.
13. AstheCompanyisnotachitfund,nidhi,mutualbenefitfundorasociety,theprovisionsofclause(xiii)oftheOrderarenotapplicable.
14. TheCompanyisnotdealing inortrading inshares,securities, debentures and other investments.Accordingly, the provisions of clause 4 (xiv) of theOrderarenotapplicabletotheCompany.
15. TheCompanyhasnotgivenanyguaranteeforloanstakenbyothersfrombanksorfinancialinstitutions.
AnneXuRe to the AuDItoRS’ RepoRt
23
AnnuAl RepoRt 2010-11
16. TheCompanydidnothaveanytermloansoutstandingduringtheyear.
17. OnanoverallexaminationofthebalancesheetoftheCompany,wereportthatnofundsraisedonshort-termbasishavebeenusedforlongterminvestment.
18. Duringtheyear,theCompanyhasnotmadepreferentialallotmentofsharestopartiesandcompaniescoveredintheregistermaintainedundersection301oftheAct.
19. The Company does not have any outstandingdebenturesduringtheyear.
20. The Company has not raised anymoney by publicissuesduringtheyear.
21. Duringthecourseofourauditandasexplainedtous,
nofraudonorbytheCompanyhasbeennoticedorreportedduringtheyeartous.
For DIxIT DATTATRAY & ASSOCIATES, Chartered Accountants Firm registration no. : 102665w
D. B. DIxIT ProprietorMembershipNo40032
Place:MumbaiDated:25
thJuly,2011
24
GI enGIneeRInG SolutIonS lIMIteD
PARTICULARS SCHEDULE AS AT 31ST MARCH, 2011 AS AT 31ST MARCH, 2010 ` ` `SOURCES OF FUNDS1) SHAREHOLDERS FUNDS a)ShareCapital A 86,118,780 86,118,780 b)Reserves&Surplus B 314,879,105 314,879,105 400,997,885 400,997,885 Total 400,997,885 400,997,885 APPLICATION OF FUNDS 1) FIxED ASSETS a)GrossBlock C 36,009,207 36,009,207 b)Less:Depreciation/Amortisation 21,226,705 19,096,392 c)NetBlock 14,782,502 16,912,815
2) INVESTMENTS D 268,234,232 268,234,232
3) CURRENT ASSETS, LOANS & ADVANCES E a) CURRENT ASSETS (i)SundryDebtors 19,934,656 17,801,430 (ii)Cash&BankBalances 4,264,123 394,695 24,198,779 18,196,125 b) LOANS & ADVANCES 98,468,031 92,632,005 122,666,810 110,828,130 LESS: CURRENT LIABILITIES & PROVISIONS F (i) CurrentLiabilities 44,904,399 19,353,621 (ii)Provisions 2,912,054 2,368,772 47,816,453 21,722,393 NET CURRENT ASSETS 74,850,357 89,105,737
4) (a) PRELIMINARY ExPENSES G - - (b) PROFIT & LOSS ACCOUNT 43,130,794 26,745,101 Total 400,997,885 400,997,885 Significant Accounting Policies L
Notes forming part of Accounts M
The schedules referred to above form an integral part of the Balance Sheet As per our Report of even date attachedFor DIxIT DATTATRAY & ASSOCIATES For and on behalf of the Board of DirectorsCHARTEREDACCOUNTANTSFirmRegistrationNo.:102665w
D. B. DIxIT SAJID MALIk GANAPATHY VISHwANATHANPROPRIETOR MANAGINGDIRECTOR DIRECTORMembershipNo.40032 DEERAJ NAIRMUMBAI,25
thJuly,2011 COMPANYSECRETARY
BAlAnCe SheetAS At 31St MARCh, 2011
25
AnnuAl RepoRt 2010-11
The schedules referred to above form an integral part of the Balance Sheet As per our Report of even date attachedFor DIxIT DATTATRAY & ASSOCIATES For and on behalf of the Board of DirectorsCHARTEREDACCOUNTANTSFirmRegistrationNo.:102665w
D. B. DIxIT SAJID MALIk GANAPATHY VISHwANATHANPROPRIETOR MANAGINGDIRECTOR DIRECTORMembershipNo.40032 DEERAJ NAIRMUMBAI,25
thJuly,2011 COMPANYSECRETARY
PARTICULARS SCHEDULE FOR THE YEAR ENDED FORTHEYEARENDED 31ST MARCH, 2011 31STMARCH,2010 ` ` `INCOME
RevenuefromOperations 13,719,401 11,270,953
OtherIncome H 5,119,530 3,900,609
Total 18,838,931 15,171,562
ExPENDITURE
PersonnelCosts I 3,728,610 5,645,339
OperatingandOtherCosts J 27,934,369 12,487,236
FinanceCosts k 49,332 43,495
Depreciation 2,130,313 2,135,472 Total 33,842,624 20,311,542 Operating Profit / (Loss) Before Tax (15,003,693) (5,139,980)
CurrentTax 1,382,000 615,000 Profit / (Loss) After Tax (16,385,693) (5,754,980)
Add:OpeningBalance (26,745,101) (20,990,121) Balance carried to Balance Sheet (43,130,794) (26,745,101)
EarningperShare(EquityShare,parvalue`10each) Basic (1.90) (0.75)
Numberofweightedaveragesharesusedincomputingearningspershare 8,611,878 7,626,399
Diluted (1.90) (0.75)
Numberofweightedaveragesharesusedincomputingearningspershare 8,611,878 7,626,399
Significant Accounting Policies L
Notes forming part of Accounts M
pRoFIt AnD loSS ACCountFoR the YeAR enDeD 31St MARCh, 2011
26
GI enGIneeRInG SolutIonS lIMIteD
SCheDuleSAnneXeD to AnD FoRMInG pARt oF the BAlAnCe Sheet AS At 31St MARCh, 2011
PARTICULARS AS AT 31ST ASAT31ST MARCH, 2011 MARCH,2010
` `
Schedule ASHARE CAPITALAUTHORISED 8,50,00,00,000EquityShares(PreviousYear8,50,00,00,000)of`10/-each 85,000,000,000 85,000,000,000 Total 85,000,000,000 85,000,000,000 ISSUED, SUBSCRIBED & PAID-UP 86,11,878(PreviousYear86,11,878)EquitySharesof`10/-Eachfullypaid 86,118,780 86,118,780upOutoftheabove57,84,378(EquitySharesof`10/-eachareallottedasfullypaiduptotheshareholdersofGenesysInternationalCorporationLtd.PursuanttotheschemeofdemergersanctionedbytheHighCourt,Mumbai on7thSeptember,2007and16,77,500EquitySharesof`10/-eachissued duringtheyearuponconversionofEquityShareWarrantsintoEquity SharesaspertheprovisionsofschemeofdemergersanctionedbyHighCourt,Mumbai,on7thSeptember,2007.)
Total 86,118,780 86,118,780
Schedule B RESERVES & SURPLUS GENERAL RESERVE AsperlastBalanceSheet 306,079,105 306,079,105
SHARE PREMIUM ACCOUNT 8,800,000 8,800,000 Total 314,879,105 314,879,105
Schedule C
FIxED ASSETS (Amount in `)
Gross Block Depreciation / Amortisation Net Block
Particulars Opening Addition Sale Closing Up to For the On Up to As at As at Balance during during Balance 01.04.10 year Deduction 31.03.11 31.03.11 31.03.10 as at the year the year as at 01.04.10 31.03.11
Tangible Assets
ComputerHardware 1,940,370 - - 1,940,370 1,923,108 15,675 - 1,938,783 1,587 17,262
Furniture&Fixtures 32,128,374 - - 32,128,374 16,385,634 2,033,727 - 18,419,361 13,709,013 15,742,740
OfficeEquipments 1,666,905 - - 1,666,905 518,091 79,178 - 597,269 1,069,636 1,148,814
Intangible Assets
ComputerSoftware 273,558 - - 273,558 269,559 1,733 - 271,292 2,266 3,999
Total 36,009,207 - - 36,009,207 19,096,392 2,130,313 - 21,226,705 14,782,502 16,912,815
PreviousYear 36,004,007 5,200 - 36,009,207 16,960,920 2,135,472 - 19,096,392 16,912,815 19,043,087
27
AnnuAl RepoRt 2010-11
PARTICULARS AS AT 31ST ASAT31ST MARCH, 2011 MARCH,2010
` `
SCheDuleSAnneXeD to AnD FoRMInG pARt oF the BAlAnCe Sheet AS At 31St MARCh, 2011
Schedule D INVESTMENTS (AT COST) LongTerm,fullypaidup TradeInvestments-Unquoted InvestmentinWhollyOwnedSubsidiaryCompany 550,650CommonStockUSD10parvalue 268,234,232 268,234,232inGenesysEnterprisesInc.,USA (Previousyear550,650commonstock$10parvalue) Total 268,234,232 268,234,232
Schedule E CURRENT ASSETS, LOANS & ADVANCES (a) CURRENT ASSETS (1) Sundry Debtors (Unsecured) Dueformorethansixmonths Consideredgood 18,413,929 11,454,861 Considereddoubtful 8,709,902 9,683,726 27,123,831 21,138,587 Less:ProvisionforDoubtfulDebts 8,709,902 9,683,726 18,413,929 11,454,861 Others-Consideredgood 1,520,727 6,346,569 19,934,656 17,801,430(2) Cash & Bank Balances (i) Cash in Hand - - (ii) Balances with Scheduled banks InCurrentAccounts 4,264,123 394,695 InFixedDeposits(MarginMoney)Accounts - - 4,264,123 394,695 Total 24,198,779 18,196,125
(b) LOANS & ADVANCES (Unsecured-Consideredgood) (i) Advancesrecoverableincashorinkindor 2,999,518 2,513,696 forthevaluetobereceived (ii) PrepaidExpenses 11,944 16,698 (iii) AdvanceTax 2,548,762 2,108,552 (iv) LoantoOtherBodyCorporates 92,877,807 87,963,059 (v) FacilitiesDeposits 30,000 30,000 Total 98,468,031 92,632,005
28
GI enGIneeRInG SolutIonS lIMIteD
PARTICULARS AS AT 31ST ASAT31ST MARCH, 2011 MARCH,2010
` `
Schedule F CURRENT LIABILITIES & PROVISIONS (a) Current Liabilities SundryCreditors 44,848,635 19,289,810 OtherLiabilities 55,764 63,811 Total 44,904,399 19,353,621 (b) PROVISIONS ProvisionforRetirementBenefits 20,245 908,672 ProvisionforTaxation 2,891,809 1,460,100 Total 2,912,054 2,368,772
Schedule G MISCELLANEOUS ExPENDITURE Preliminary Expenses OpeningBalance - - Add:Incurredduringtheyear 25,734,309 - 25,734,309 - Less:Writtenoffduringtheyear 25,734,309 - - -
SCheDuleSAnneXeD to AnD FoRMInG pARt oF the BAlAnCe Sheet AS At 31St MARCh, 2011
29
AnnuAl RepoRt 2010-11
PARTICULARS FOR THE YEAR FORTHEYEAR ENDED 31ST ENDED31ST MARCH 2011 MARCH2010
Schedule H OTHER INCOME Interestincome(Taxdeductedatsource`2,04,782(PreviousYear`3,88,008)) 5,119,530 3,883,578Dividendincomefrommutualfundinvestments(Current,NonTrade) - 17,031 Total 5,119,530 3,900,609
Schedule I PERSONNEL COSTSSalaries,Allowances&Bonus 3,504,586 5,306,745StaffWelfare 134,586 57,481ContributiontoProvidentFund&otherfunds 89,438 281,113 Total 3,728,610 5,645,339
Schedule J OPERATING AND OTHER COSTSConveyance&Traveling 11,275 18,655Legal&ProfessionalFees 90,780 181,300CommunicationExpenses 69,805 55,292ElectricityandWaterCharges 386,493 181,219ForeignExchangeLoss/(Gain)-Others 1,175,613 1,687,191Miscellaneousexpenses 410,608 659,411PreliminaryExpensesWrittenOff 25,734,309 -Rent 35,000 -RemunerationtoAuditors -StatutoryAudit 10,486 10,442 -TaxAudit 10,000 10,000 -OtherServices - -BadDebts 973,825 Less-ProvisionforDoubtfulDebts 973,825 - - ProvisionforDoubtfulDebts - 9,683,726 Total 27,934,369 12,487,236
Schedule k FINANCE COSTSBankCharges 49,332 43,495Interest - - Total 49,332 43,495
SCheDuleSAnneXeD to AnD FoRMInG pARt oF the pRoFIt AnD loSS ACCount FoR the YeAR enDeD 31St MARCh, 2011
30
GI enGIneeRInG SolutIonS lIMIteD
Schedule - L
SIGNIFICANT ACCOUNTING POLICY
I. Company’s Background
GI Engineering Solutions Ltd. is formed to provideInformationTechnology,EngineeringServicesandotherrelatedservices.
II. Significant Accounting Policies
a) Basis of preparation of financial statements
ThefinancialstatementshavebeenpreparedunderthehistoricalcostconventioninaccordancewiththeGenerallyAcceptedAccountingPrinciples(GAAP),theAccountingStandardsissuedbyTheInstituteofCharteredAccountantsof IndiaandtheprovisionsoftheCompaniesAct,1956.
b) Use of estimates
Preparation of financial statements in conformitywithGAAPrequiresmanagementtomakeestimatesandassumptionsthataffectthereportedamountsofassetsandliabilities,disclosureofcontingentassetsandliabilitiesatthedateoffinancialstatementsandthe reported amounts of revenues and expensesduring the reporting period. Examples of suchestimates includeestimateofuseful lifeofassetsandprovisionforretirementbenefits.Actualresultscould differ from the estimates.Any revisions toaccountingestimatesarerecognizedprospectivelyincurrentandfutureperiods.
c) Revenue recognition and expenses
Revenuesarerecognizedonaccrualbasis.Revenuefromoperations is accounted for on the basis ofservicesrenderedandbilledto/acceptedbyclients.
Expenses are accounted on accrual basis andprovisionsaremade forallknown liabilitiesasonthedateofthefinancialstatements.
d) Fixed Assets
FixedAssetsarestatedatcostofacquisitionincludingfreight,installationcharges,financecharges,duties
Depreciation/Amortizationischargedonapro-ratabasis for assets purchased / sold during the yearwithreferencetodateofinstallation/disposal.Assetscostingbelow`5,000/-arefullydepreciatedintheyearofpurchase.
f) Impairment of assets
The carrying amounts of the Company’s assetsincluding intangible assets are reviewed at eachBalanceSheetdatetodeterminewhetherthere isanyindicationofimpairment.Ifanysuchindicationexists,theassetsrecoverableamountisestimated,asthehigherofthenetsellingpriceandthevalueinuse.Animpairmentlossisrecognizedwheneverthecarryingamountofanassetoritscashgeneratingunits exceeds its recoverable amount. If at theBalanceSheet date, there is an indication that apreviously assessed impairment loss no longerexists, the recoverable amount is reassessedandthe asset is reinstated at the recoverable amountsubjecttoamaximumofdepreciablehistoricalcost.
g) Borrowing Costs
Borrowing costs directly attributable to the
acquisitionofthefixedassetsarecapitalizedforthe
& taxes & other incidental expenses related toacquisitionandinstallationoftheconcernedassets.
Advances paid if any, towards the acquisition offixedassetsaredisclosedundertheheadadvancesforcapitalexpenditure
e) Depreciation / Amortization
Particulars Depreciation Rate Method
(A) Tangible Assets -Computerhardware Straight 3to5year &dataprocessingunits line
-Otherassets Straight Ratesspecified line inscheduleXIV
(B) Intangible Assets Straight 3to5year -Computersoftware line
SCheDuleS
31
AnnuAl RepoRt 2010-11
perioduntiltheassetisreadyforitsintendeduse.
Otherborrowingcostsarerecognizedasexpensein
theperiodinwhichtheyareincurred.
h) Investments
Investmentsareclassifiedeitherascurrentorlong
terminaccordancewithAccountingStandard(AS)
-13on“AccountingforInvestments”.
Currentinvestmentsarestatedatlowerofcostorfair
value.Anyreductioninthecarryingamountandany
reversalofsuchreductionsarechargedorcredited
totheProfit&Lossaccount.
LongTermInvestmentsarestatedatcost.Provision
ismadetorecognizeadecline,otherthantemporary,
inthevalueofsuchinvestments.
i) Leases
(i) Finance Lease
Assets taken on finance lease if any, are
accounted for as fixed assets in accordance
with Accounting Standard 19 on leases,
(AS19) issuedbyThe InstituteofChartered
AccountantsofIndia.
(ii) Operating Lease
Assets taken on lease underwhich all the
riskandrewardsofownershipareeffectively
retained by the lessor if any, are classified
as operating lease. Lease payments under
operatingleasearerecognizedasexpenseson
accrualbasisinaccordancewiththerespective
leaseagreement.
j) Foreign Currency Transactions
Transactions denominated in foreign currency are
recordedatratesthatapproximatetheexchangerate
prevailingonthedateoftherespectivetransaction.
Exchangedifferences arising on foreign exchange
transactionssettledduringtheyeararerecognized
intheProfitandLossAccountoftheyear.Monetary
assetsandliabilitiesinforeigncurrency,whichare
outstandingasattheyear-end,aretranslatedatthe
year end closing exchange rate and the resultant
exchange differences are recognized in the Profit
andLossAccount.
Thepremiumordiscountarisingattheinceptionof
theforwardexchangecontractsrelatedtounderlying
receivables and payables are amortized as an
expenseorincomerecognizedovertheperiodofthe
contracts.Gainsorlossesonrenewalorcancellation
offoreignexchangeforwardcontractsarerecognized
asincomeorexpensefortheperiod.
InvestmentsinoverseasSubsidiaryarerecognized
attherelevantexchangeratesprevailingonthedate
ofinvestments.
k) Earning per Share
In accordancewith theAccounting Standard 20
(AS–20)“EarningperShare”issuedbytheInstitute
ofCharteredAccountantsofIndia,basicanddiluted
earnings per share is computed usingweighted
averagenumberofsharesoutstandingduringtheyear.
l) Taxation
i. Current Tax
The provision for current tax is made on
the basis of tax liability computed after
considering the admissible deductions and
exemptionsundertheprovisionsoftheIncome
TaxAct,1961.
ii. Deferred Tax
Deferred tax asset or liability is recognized
for reversible timing differences between
theprofitasperfinancialstatementsandthe
profitofferedforincometaxes,basedontax
ratesthathavebeenenactedorsubstantively
enactedattheBalanceSheetdate.
Deferredtaxassetsarerecognizedandcarried
forward to the extent there is a reasonable
32
GI enGIneeRInG SolutIonS lIMIteD
certaintythatsufficientfuturetaxableincome
willbeavailableagainstwhichsuchdeferred
taxassetscanberealized.
Deferredtaxassetsonunabsorbedlossesare
notrecognizedunlessthereisvirtualcertainty
that sufficient future taxable incomewill be
available againstwhich such deferred tax
assetswillberealized.
DeferredTaxassetsandliabilitiesarereviewed
ateachbalancesheetdate.
m) Employee Benefits :
(i) Short-term employee benefits – Employee
benefitspayablewhollywithintwelvemonths
ofrenderingtheserviceareclassifiedasshort
termemployeebenefitsandarerecognizedin
theperiodinwhichtheemployeerendersthe
relatedservice.
(ii) Post employment benefits (defined benefit
plans)–Theemployees’gratuityschemeisa
definedbenefitplan.Thepresentvalueofthe
obligationundersuchdefinedbenefitplanis
determinedateachBalanceSheetdatebased
onanactuarialvaluationusingtheprojected
unitcreditmethod.Actuarialgainsandlosses
andcurrentplancostsarerecognized inthe
ProfitandLossaccount.
(iii) Postemploymentbenefits(definedcontribution
plans)–Contributionstotheprovidentfundis
definedcontributionschemeandisrecognized
asanexpenseintheProfitandLossaccount
intheperiodinwhichthecontributionisdue.
(iv) Long-term employee benefits – Long-term
employeebenefitscompriseofcompensated
absences and other employee incentives.
These aremeasured based on an actuarial
valuation carried out by an independent
actuary at eachBalanceSheet date unless
they are insignificant. Actuarial gains and
lossesandpastservicecostsarerecognized
immediatelyintheProfitandLossaccount.
n) Provisions and Contingent Liabilities
TheCompanyrecognizesaprovisionwhenthereis
apresentobligationasaresultofapasteventthat
probablyrequiresanoutflowofresources,whichcan
bereliablyestimated.Disclosuresforacontingent
liabilityismade,withoutaprovisioninbooks,when
there is an obligation thatmay, but probablywill
not, require outflowof resources.Where there is
a possible obligation or a present obligation that
thelikelihoodofoutflowofresourcesisremote,no
provisionordisclosureismade.
Schedule - M
NotesformingpartofAccounts
1. Share Capital
Duringtheyearthereisnochangeinthesharecapitalof
theCompany.
2. Contingent Liabilities:
ContingentLiabilitiesRs.Nil(PreviousyearRs.Nil).
3. DisclosurerequirementsaspertheAccountingStandard
–18(AS–18)“RelatedPartyDisclosure”issuedbythe
InstituteofCharteredAccountantsofIndia.
ListofRelatedParties:-
A.WhollyownedSubsidiaryCompany
M/sGenesysEnterprisesInc.,USA
B. KeyManagementPersonnel
Name of Personnel Designation
Mr.SajidMalik ManagingDirector
Mrs.SarojaMalik Director
C. PrincipalShareholder
M/sKilamHoldingsLtd,Mauritius
D. AssociateEnterprises
M/sGenesysInternationalCorporationLtd.,India
M/s.VenturaSecuritiesLimited,India
33
AnnuAl RepoRt 2010-11
Details of Transactions with related parties are as follows:
Particulars Year ended Yearended 31st March 2011 (`) 31stMarch2010(`)
Transactions during the year -
RentPaid–VenturaSecuritiesLimited 35,000 -Advancetakenfrom/ReimbursementofExpensesbyGenesysInternationalCorporationLtd. 3,29,83,468 71,55,742AdvanceRepaid/ReimbursementofExpensestoGenesysInternationalCorporationLtd. 60,00,000 1,25,83,734AdvancetoGenesysEnterprisesInc.,USA 4,79,378 4,48,452 Closing Balance - AmountPayabletoGenesysInternationalCorporationLtd. 3,58,07,353 88,23,885AmountReceivablefromGenesysEnterprisesInc.,USA 16,45,356 11,65,978
4. Employee Benefits :
(I) Post-employmentbenefitsplans
(b) DefinedContributionPlans–
Inrespectofthedefinedcontributionplans,anamountof ` 78,054(PreviousYear`2,35,044) hasbeenprovided in the Profit & Loss account for the yeartowardsemployershareofPFcontribution.
(c) DefinedBenefitPlans–
(i) The liability in respect of gratuity is determined asper actuarial valuation carried out as at BalanceSheetdate.Thepresentvalueoftheobligationundersuchplanisdeterminedusingtheprojectedunitcreditmethod.ActuarialgainsandlossesarerecognizedintheProfit&Lossaccountfortheperiodinwhichtheyoccur.
(ii) Principalactuarialassumptions:
Particulars FY 2010-11 FY2009-10 Gratuity GratuityDiscountrateCurrentyear 8.3% p.a 8.3%p.aSalaryEscalationCurrentyear ForFirst5Years 12% p.a 12%p.aNext5Years 10% p.a 10%p.aThereafter 7%p.a 7%p.a
(iii) ReconciliationofBenefitObligation:
Particulars FY 2010-11 FY2009-10 Gratuity GratuityLiabilityatthebeginningoftheyear 2,03,1075,45,641
InterestCost 21,559 40,018
CurrentServiceCost 61,206 70,019
BenefitPaid 1,25,192-
Actuarial(Gain)/LossonObligations (1,55,534)(4,52,571)
Amountrecognizedanddisclosedunderthehead"Provisionforemployeesbenefits” 5,1462,03,107
(iv) ExpensesrecognizedintheProfit&LossAccountundertheheadPersonnelExpenses:
Particulars FY 2010-11 FY2009-10 Gratuity GratuityCurrentServiceCost 61,206 70,019InterestCost 21,55940,018NetActuarial(Gain)/Lossrecognized (1,55,534)(4,52,571)ExpensesrecognizedinProfitandLossaccount (72,769)(3,42,534)
(Amount in `)
(Amount in `)
34
GI enGIneeRInG SolutIonS lIMIteD
(v) DetailsofprovisionforemployeebenefitsrecognizedintheBalanceSheet:
Particulars FY 2010-11 FY2009-10
Gratuity Gratuity
Liabilityattheendoftheyear 5,146 2,03,107
Fairvalueoftheplanassetsat
theendoftheyear --
Difference 5,146 2,03,107
Amountrecognizedin
theBalanceSheet 5,1462,03,107
5. Provision of` 13,82,000 (Previous Year –` 6,15,000)
towardsincometaxpayableunderIncomeTaxAct,1961
hasbeenmade.
6. InaccordancewiththeAccountingStandard–22(AS–22)
“AccountingforTaxesonIncome”issuedbytheInstitute
ofCharteredAccountantsofIndia,detailsofdeferredtax
assetsestimatedbytheCompanyisgivenbelow-
Particulars As at Asat
March 31 March31
2011 2010
` `
Deferred Tax Assets
UnabsorbedLosses - 17,44,532
ProvisionforEmployee
Benefits 6,256 3,01,838
ProvisionforDoubtfulDebts 26,91,360 32,16,692
PreliminaryExpenses 50,991 1,12,001
Total 27,48,607 53,75,063
Deferred Tax Liability
FixedAssets
(Depreciation/Amortization) 18,117 1,67,558
Net Deferred Tax
(Liability)/Assets 27,30,490 52,07,505
Deferred TaxAssets arising on account of provisions for
employees’benefits,preliminaryexpensesanddoubtfuldebts
etc.arenotrecognizedintheabsenceofvirtualcertaintyof
futuretaxableincomeagainstwhichdeferredtaxassetscan
besetoff.
7. Earnings per share:
March 31 March31
2011 2010
Deferred Tax Assets
Weightedaveragenumberof
sharesusedasdenominator
forcalculatingBasic earning
per share 86,11,878 76,26,399
Weightedaveragenumber
ofsharesusedasdenominator
forcalculatingDilutive earning
per share 86,11,878 76,26,399
Net Profit / ( Loss )
after taxation (1,63,85,693) (57,54,980)
BasicEPS ` (1.90) `(0.75)
DilutedEPS ` (1.90) `(0.75)
NominalvalueofShares ` 10 `10
8. (a) TheCompanyoperatesonlyinsinglePrimarySegment
i.e.EngineeringbasedservicesforthepurposeofAS
–17Segmentalreporting.
(b) Thedisclosurerequirement inrespectofsecondary
segment(geographicalsegment)aspertheAccounting
Standard-17isasunder:
(Amountin`)
SECONDARY SEGMENT
(GeographicalSegmentbasedonSalesContinentviz)
SegmentRevenue For the Year ended FortheYearended 31st March 2011 31stMarch2010
NorthAmerica 24,59,075 1,12,70,953
MiddleEast 97,88,226 -
Asia 14,72,100 -
Total Revenue fromOperations 1,37,19,401 1,12,70,953
(Amount in `)
35
AnnuAl RepoRt 2010-11
Signatures to Schedule 'A' to 'M' As per our Report of even date attachedFor DIxIT DATTATRAY & ASSOCIATES For and on behalf of the Board of DirectorsCHARTEREDACCOUNTANTSFirmRegistrationNo.:102665w
D. B. DIxIT SAJID MALIk GANAPATHY VISHwANATHANPROPRIETOR MANAGINGDIRECTOR DIRECTORMembershipNo.40032 DEERAJ NAIRMUMBAI, COMPANYSECRETARY25thJuly,2011
9. Earnings in Foreign Exchange: (At actual)
For the Year ended FortheYearended 31st March 2011 31stMarch2010RevenuefromOperations `1,08,85,078 `43,97,954
10. Value of Imports (CIF basis): (At actuals)
For the Year ended FortheYearended 31st March 2011 31stMarch2010
Capital Goods Nil Nil
11. Exchange Differences
During theperiod realizedandunrealizedexchange lossamountingto`2,09,022(PreviousYearexchangelossof`22,81,883)isincludedintheprofitandlossaccount.
12. TheBalanceSheet of theSubsidiaryCompany reflectsdiminution in thenetworthafterconsidering the lossesincurred.Thesaidsubsidiarycompanywillincursignificantloss if any part of the accounts receivable and notesreceivablebecomeuncollectible.However theCompanycontinuestovaluetheinvestmentsatcost.Intheopinionofthemanagement,provisionfordiminutionisnotrequiredin
viewofthestrategicnatureofinvestments,futurebusinessplans and belief of themanagement of the subsidiarycompanyontherecoverabilityofaccountsreceivableandnotesreceivable.
13. As at 31stMarch, 2011no supplier has intimated theCompanyaboutitsstatusasMicroorSmallEnterpriseorits registrationwith theappropriateauthorityunder theMicro,Small&MediumEnterprisesDevelopmentAct,2006(saidAct)andtothebestoftheCompany’sknowledgeandbelief,sundrycreditorsasattheyearenddonotincludeoutstandingduestopartiesorentitiescoveredbythesaidAct.
14. TheCompany is engaged in the business of renderingEngineering&ITbasedservices.Thedevelopmentandsaleofsuchservicescannotbeexpressedinanygenericunit.Hence,itisnotpossibletogivethequantitativedetailsofsalesandcertaininformationasrequiredunderparagraphs3,4Cand4DofpartIIofScheduleVItotheCompaniesAct1956.
15. Figures for previous year have been re-grouped/re-classifiedwherevernecessarytoconformtocurrentyear’spresentation.
36
GI enGIneeRInG SolutIonS lIMIteD
Particulars For The Year Ended ForTheYearEnded 31st March 2011 31stMarch2010 ` ` ` `
A CASH FLOw FROM OPERATING ACTIVITIES Net Profit before tax as per Profit and Loss account (15,003,693) (5,139,980) Adjustmentsfor: Depreciationandamortisation 2,130,313 2,135,472 Interestincome (5,119,530) (3,900,609) PreliminaryExpw/off 25,734,309 - 22,745,092 (1,765,137) Operating Profit before working capital changes 7,741,399 (6,905,117) Adjustmentsfor: (Increase)/DecreaseinTradeReceivables (2,133,226) 4,423,915 (Increase)/DecreaseinOtherCurrentAssets - 2,096 (Increase)/DecreaseinLoans&Advances (481,068) (446,967) Increase/(Decrease)inCurrentLiabilitiesandProvisions 24,662,351 3,593,892 22,048,057 7,572,936 CASH GENERATED FROM OPERATIONS 29,789,456 667,819 Taxes(Paid)/Refundreceived (390,501) (391,064) NET CASH FLOw FROM OPERATING ACTIVITIES 29,398,955 276,755 B CASH FLOw FROM INVESTING ACTIVITIES Purchaseoffixedassets(IncludingCapitalAdvances) - (5,200) Interestincome 5,119,530 3,900,609 LoantoOtherBodyCorporates (4,914,748) (23,492,070) NET CASH USED IN INVESTING ACTIVITIES 204,782 (19,596,661)
C CASH FLOw FROM FINANCING ACTIVITIES ProceedsfromIssueofShares - 19,800,000 NetProceeds/(Repayment)from/ofUnsecuredLoans - (300,000) MiscellaneousExpenditure (25,734,309) - NET CASH FLOw FROM FINANCING ACTIVITIES (25,734,309) 19,500,000 NET INCREASE IN CASH & CASH EQUIVALENTS 3,869,428 180,094 CASH & CASH EQUIVALENTS (OPENING BALANCE) 394,695 214,601 CASH & CASH EQUIVALENTS (CLOSING BALANCE) 4,264,123 394,695
CASh FloW StAteMent FoR the YeAR enDeD 31St MARCh, 2011
ThisistheCashFlowstatementreferredtoinourreportofevendate.
For DIxIT DATTATRAY & ASSOCIATES For and on behalf of the Board of DirectorsCHARTEREDACCOUNTANTSFirmRegistrationNo.:102665w
D. B. DIxIT SAJID MALIk GANAPATHY VISHwANATHANPROPRIETOR MANAGINGDIRECTOR DIRECTORMembershipNo.40032 DEERAJ NAIRMUMBAI, COMPANYSECRETARY25thJuly,2011
37
AnnuAl RepoRt 2010-11
Registration.Details. . . . . . . . . State Code 1 1
Registration No. 1 6 3 7 3 1
Balance Sheet Date 3 1 0 3 2 0 1 1
Date Month Year
Capital.raised.during.the.year.(Amount.in.Rs..Thousand)
Public Issue N I L Rights Issue N I L
Bonus Issue N I L Private Placement N I L
Position.of.Mobilisation.and.Deployment.of.Funds.(Amount.in.Rs..Thousand)
Total Liabilities 4 0 0 9 9 8 Total Assets 4 0 0 9 9 8
Sources.of.Funds
Paid-up Capital 8 6 1 1 9 Reserves & Surplus 3 1 4 8 7 9
Equity Share Warrant N I L
Secured Loans N I L
Unsecured Loan N I L
Application.of.Funds. . . . . . . . .
Net Fixed Assets 1 4 7 8 3 Investments 2 6 8 2 3 4
Net Current Assets 7 4 8 5 0 Accumulated Losses 4 3 1 3 1
Misc. Expenditure N I L
Performance.of.Company.(Amount.in.Rs..Thousand)
Turnover 1 8 8 3 9 Total Expenditure 3 3 8 4 3
Loss before tax 1 5 0 0 4 Loss after tax 1 6 3 8 6
Earning per share in Rs. (Negative) Dividend % N I L --- Basic ( 1 . 9 0 ) --- Dilutive ( 1 . 9 0 )
Generic.Names.of.three.Principal.Products./.Services.of.Company.(as.per.monetary.terms)
Item Code No (ITC Code) : 8 5 2 4 9 9 0 4 . 9 0
Product Description : C O M P U T E R S O F T W A R E
BAlAnCe Sheet ABStRACt AnD CoMpAnY’S GeneRAl BuSIneSS pRoFIleAS.PER.PART.IV.OF.SCHEDULE.VI.TO.THE.COMPANIES.ACT,.1956.
For and on behalf of the Board of Directors
SAJID MALIk GANAPATHY VISHwANATHAN MANAGINGDIRECTOR DIRECTOR
DEERAJ NAIRMUMBAI,25
thJuly,2011 COMPANYSECRETARY
StAteMent puRSuAnt to SeCtIon 212 oF the CoMpAnIeS ACt, 1956
STATEMENT.PURSUANT.TO.SECTION.212.OF.THE.COMPANIES.ACT,.1956.
Name.of.the.Subsidiary. Genesys.Enterprises.Inc..USA. . .
Financial year of the Subsidiary Company ended on 31st
March, 2011
Holding Company's Interest
Number of shares 550,650 Ordinary Shares
Extent of holding 100%
Net aggregate amount of the subsidiary's profits/(Losses) so far as it concerns members of the holding Company and is not dealt with in the Holding Company's accounts
(i) for the financial year of the subsidiary (29202)
(ii) for the previous financial years of the subsidiary since it become the Holding Company's subsidiary (761,625)
Net aggregate amount of the profits/(Losses) of the subsidiary dealt with the Company's accounts
(i) for the financial year of the subsidiary N I L
(ii) for the previous financial years of the subsidiary since it become the Holding Company's subsidiary N I L
(Amount.in.USD)
For and on behalf of the Board of Directors
SAJID MALIk GANAPATHY VISHwANATHAN MANAGINGDIRECTOR DIRECTOR
DEERAJ NAIRMUMBAI,25
thJuly,2011 COMPANYSECRETARY
39
AnnuAl RepoRt 2010-11
To the Board of Directors of
GI Engineering Solutions Limited.
Wehave audited the attached consolidatedBalanceSheet
ofGIEngineeringsolutionsLimitedand itsSubsidiaryasat
March31,2011,theConsolidatedProfitandLossAccount,
and the Consolidated Cash Flow Statement for the year
ended on that date annexed thereto. These Consolidated
FinancialStatementsaretheresponsibilityoftheCompanys’
management.Ourresponsibilityistoexpressanopinionon
thesefinancialstatementsbasedonouraudit.
1. Weconductedourauditinaccordancewiththeauditing
standardsgenerally accepted in India. Thesestandards
require thatwe plan and perform the audit to obtain
reasonable assurance about whether the financial
statementsarefreeofmaterialmisstatement.Anaudit
includesexamining,onatestbasis,evidencesupporting
theamountsanddisclosuresinthefinancialstatements.
Anauditalsoincludesassessingtheaccountingprinciples
used and significant estimatesmade bymanagement,
aswell as evaluating the overall financial statements
presentation.We believe that our audit provides a
reasonablebasisforouropinion.
2. We report that the Consolidated Financial Statements
havebeenpreparedbytheCompanyinaccordancewith
therequirementsofAccountingStandard21(AS–21)
‘Consolidated Financial Statements’, prescribed in the
Companies (AccountingStandards)Rules,2006andon
thebasisoftheseparateauditedfinancialstatementsofGI
EngineeringSolutionsLimitedanditsSubsidiaryincluded
intheconsolidatedfinancialstatements.
3. In our opinion and on the basis of the information and
explanations given to us and on the consideration of
theseparateauditreportsonindividualauditedfinancial
statementsofGIEngineeringSolutionsLimited, and its
Subsidiary,weareof theopinion that theConsolidated
FinancialStatementsgiveatrueandfairview,
(a) InthecaseoftheConsolidatedBalanceSheet,of
theconsolidatedstateofaffairsofGIEngineering
SolutionsLimited&itsSubsidiaryasat31stMarch,
2011;
(b) In the case of the Consolidated Profit and Loss
Account,oftheconsolidatedresultsofoperations
ofGIEngineeringSolutionsLimited,&itsSubsidiary
fortheyearendedonthatdate;and
(c) In the case of the Consolidated Cash Flow
Statement, of the consolidated cash flows ofGI
EngineeringSolutionsLimited.,&itsSubsidiaryfor
theyearendedonthatdate.
For DIxIT DATTATRAY & ASSOCIATES,
Chartered Accountants
D. B. DIxIT
Proprietor
MembershipNo40032
Mumbai
Dated:25thJuly,2011
AuDItoRS RepoRt on ConSolIDAteD FInAnCIAl StAteMentS
40
GI enGIneeRInG SolutIonS lIMIteD
PARTICULARS SCHEDULE AS AT 31ST MARCH, 2011 AS AT 31ST MARCH, 2010 ` ` `SOURCES OF FUNDS1) SHAREHOLDERS FUNDS a)ShareCapital A 86,118,780 86,118,780 b)Reserves&Surplus B 293,114,905 295,190,965 379,233,685 381,309,745 Total 379,233,685 381,309,745
APPLICATION OF FUNDS 1) FIxED ASSETS a)GrossBlock C 77,203,264 77,203,264 b)Less:Depreciation/Amortisation 52,762,137 50,631,824 c)NetBlock 24,441,127 26,571,440 2) CURRENT ASSETS, LOANS & ADVANCES D a) CURRENT ASSETS (i)SundryDebtors 206,696,332 206,421,011 (ii)Cash&BankBalances 4,822,214 394,695 211,518,546 206,815,706 b) LOANS & ADVANCES 141,874,911 136,966,534 353,393,457 343,782,240 LESS: CURRENT LIABILITIES & PROVISIONS E (i)CurrentLiabilities 67,512,602 40,781,987 (ii)Provisions 2,912,054 2,368,772 70,424,656 43,150,759 Net Current Assets 282,968,801 300,631,481 3) (a) PRELIMINARY ExPENSES F - - (b) PROFIT & LOSS ACCOUNT 71,823,757 54,106,824 Total 379,233,685 381,309,745
Significant Accounting Policies & Notes to Accounts K
The schedules referred to above form an integral part of the Balance Sheet As per our Report of even date attachedFor DIxIT DATTATRAY & ASSOCIATES For and on behalf of the Board of DirectorsCHARTEREDACCOUNTANTSFirmRegistrationNo.:102665w
D. B. DIxIT SAJID MALIk GANAPATHY VISHwANATHANPROPRIETOR MANAGINGDIRECTOR DIRECTORMembershipNo.40032 DEERAJ NAIRMUMBAI,25
thJuly,2011 COMPANYSECRETARY
ConSolIDAteD BAlAnCe SheetAS At 31St MARCh, 2011
41
AnnuAl RepoRt 2010-11
PARTICULARS SCHEDULE FOR THE YEAR ENDED FORTHEYEARENDED 31ST MARCH, 2011 31STMARCH,2010 ` ` `
INCOME
RevenuefromOperations 13,719,401 13,678,230
OtherIncome G 5,119,530 3,900,609 Total 18,838,931 17,578,839
ExPENDITURE
PersonnelCosts H 4,594,525 7,853,263
OperatingandOtherCosts I 27,947,416 13,036,376
FinanceCosts J 83,710 84,594
Depreciation 2,130,313 2,135,472 Total 34,755,964 23,109,705 Operating Profit / (Loss) Before Tax (15,917,033) (5,530,866)
CurrentTax 1,785,358 1,029,513
TaxAdjustmentsforearlieryears 14,542 - Profit / (Loss) After Tax (17,716,933) (6,560,379)
Balancebroughtforwardfromearlieryears (54,106,824) (47,546,445) Balance carried to Balance Sheet (71,823,757) (54,106,824) EarningperShare(EquityShare,parvalue`10each)
Basic (2.06) (0.86)
Numberofweightedaveragesharesusedincomputingearningspershare 8611878 7,626,399
Diluted (2.06) (0.86)
Numberofweightedaveragesharesusedincomputingearningspershare 8611878 7,626,399
Significant Accounting Policies & Notes to Accounts k
ConSolIDAteD pRoFIt & loSS ACCount FoR the YeAR enDeD 31St MARCh, 2011
The schedules referred to above form an integral part of the Profit & Loss Account
For DIxIT DATTATRAY & ASSOCIATES For and on behalf of the Board of DirectorsCHARTEREDACCOUNTANTSFirmRegistrationNo.:102665W
D. B. DIxIT SAJID MALIk GANAPATHY VISHwANATHANPROPRIETOR MANAGINGDIRECTOR DIRECTORMembershipNo.40032 DEERAJ NAIRMUMBAI,25
thJuly,2010 COMPANYSECRETARY
42
GI enGIneeRInG SolutIonS lIMIteD
PARTICULARS AS AT 31ST ASAT31ST MARCH, 2011 MARCH,2010 ` `
Schedule A SHARE CAPITAL AUTHORISED 8,500,000,000EquityShares(PreviousYear8,500,000,000)of`10/-each 85,000,000,000 85,000,000,000
Total 85,000,000,000 85,000,000,000
ISSUED, SUBSCRIBED & PAID-UP
8,611,878(PreviousYear8,611,878)EquitySharesof`10/-Eachfullypaid 86,118,780 86,118,780up(Outoftheabove5,784,378EquitySharesof`10/-eachareallottedasfullypaiduptotheshareholdersofGenesysInternationalCorporationLtd.PursuanttotheschemeofdemergersanctionedbytheHighCourt,Mumbaion7
thSeptember,2007and16,77,500EquitySharesof`10/-each
issuedduringtheyearuponconversionofEquityShareWarrantsintoEquitySharesaspertheprovisionsofschemeofdemergersanctionedbyHighCourt,Mumbai,on7
thSeptember,2007)
Total 86,118,780 86,118,780
Schedule B RESERVES & SURPLUS GENERAL RESERVE AsperlastBalanceSheet 299,848,078 299,848,078
SHARE PREMIUM ACCOUNT 8,800,000 8,800,000
ExCHANGE FLUCTUATION RESERVE (15,533,173) 13,457,113
Total 293,114,905 295,190,965
SCheDuleS AnneXeD to AnD FoRMInG pARt oF the ConSolIDAteD BAlAnCe SheetAS At 31St MARCh, 2011
43
AnnuAl RepoRt 2010-11
SCheDuleS AnneXeD to AnD FoRMInG pARt oF the ConSolIDAteD BAlAnCe SheetAS At 31St MARCh, 2011
Schedule C
FIxED ASSETS (Amount in `)
Gross Block Depreciation / Amortisation Net Block
Particulars Opening Addition Sale Closing Up to For the On Up to As at As at Balance during during Balance 01.04.10 year Deduction 31.03.11 31.03.11 31.03.10 as at the year the year as on 01.04.10 31.03.11
Tangible Assets
ComputerHardware 12,289,907 - -12,289,907 12,272,645 15,675 - 12,288,320 1,587 17,262
Furniture&Fixtures 40,206,800 - -40,206,800 24,464,060 2,033,727 - 26,497,787 13,709,01315,742,740
OfficeEquipments 2,719,896 - - 2,719,896 1,571,082 79,178 - 1,650,260 1,069,636 1,148,814
Vehicles 1,929,806 - - 1,929,806 1,929,806 - - 1,929,806 - -
Leasehold improvement 3,473,111 - - 3,473,111 3,473,111 - - 3,473,111 - -
Intangible Assets
ComputerSoftware 273,558 - - 273,558 269,559 1,733 - 271,292 2,266 3,999
Goodwillon consolidationand otherintangible assets 16,310,186 - -16,310,186 6,651,561 - - 6,651,561 9,658,625 9,658,625
Total 77,203,264 - - 77,203,264 50,631,824 2,130,313 - 52,762,137 24,441,127 26,571,440
PreviousYear 77,198,064 5,200 -77,203,26448,496,352 2,135,472 - 50,631,824 26,571,440 28,701,712
44
GI enGIneeRInG SolutIonS lIMIteD
PARTICULARS AS AT 31ST ASAT31ST MARCH, 2011 MARCH,2010 ` `
Schedule DCURRENT ASSETS, LOANS & ADVANCES(A) CURRENT ASSETS (i) Sundry Debtors (Unsecured) Dueformorethansixmonths Consideredgood 205,175,605 200,074,442 Considereddoubtful 21,256,842 22,355,483 226,432,447 222,429,925 Less:ProvisionforDoubtfulDebts 21,256,842 22,355,483 205,175,605 200,074,442 Others 1,520,727 6,346,569 206,696,332 206,421,011 (ii) Cash & Bank Balances (a) Cash in Hand - - (b) Balances with Scheduled banks InCurrentAccounts 4,264,123 394,695 InFixedDeposits(MarginMoney)Accounts - - 4,264,123 394,695 (c) BalanceswithForeignBanks InCurrentAccounts 558,091 - 4,822,214 394,695 Total 211,518,546 206,815,706
(B) LOANS & ADVANCES (Unsecured-Consideredgood) (i)Advancesrecoverableincashorinkindor 46,114,922 46,553,849 forthevaluetobereceived (ii)PrepaidExpenses 150,826 156,962 (iii)AdvanceTax 2,548,762 2,108,552 (iv)LoantoOtherBodyCorporates 92,877,807 87,963,059 (v)Facility&OtherDeposits 182,594 184,112 Total 141,874,911 136,966,534
Schedule E CURRENT LIABILITIES & PROVISIONS (a) Current Liabilities SundryCreditors 67,141,174 40,302,253 BankOverdraft - 97,182 OtherLiabilities 371,428 382,552 Total 67,512,602 40,781,987 (b) Provisions ProvisionforRetirementbenefits 20,245 908,672 ProvisionforTaxation 2,891,809 1,460,100 Total 2,912,054 2,368,772
SCheDuleS AnneXeD to AnD FoRMInG pARt oF the ConSolIDAteD BAlAnCe SheetAS At 31St MARCh, 2011
45
AnnuAl RepoRt 2010-11
PARTICULARS FOR THE YEAR ENDED FORTHEYEARENDED 31ST MARCH, 2011 31STMARCH,2010 ` `
Schedule F MISCELLANEOUS ExPENDITURE Preliminary Expenses OpeningBalance - -Add:Incurredduringtheyear 25,734,309 - 25,734,309 -Less:Writtenoff 25,734,309 - - - Schedule G OTHER INCOME Interestincome(Taxdeductedatsource`2,04,782(PreviousYear`3,88,008)) 5,119,530 3,883,578Dividendincomefrommutualfundinvestments(Current,NonTrade) - 17,031 Total 5,119,530 3,900,609
Schedule H PERSONNEL COSTS Salaries,Allowances&Bonus 4,370,501 7,514,669StaffWelfare 134,586 57,481ContributiontoProvidentFund&otherfunds 89,438 281,113 Total 4,594,525 7,853,263
Schedule I OPERATING AND OTHER COSTS Conveyance&Traveling 11,275 18,655Legal&ProfessionalFees 90,780 395,081CommunicationExpenses 69,805 55,292ElectricityandWaterCharges 386,493 181,219ForeignExchangeLoss/(Gain)-Others 1,175,613 1,687,191MiscellaneousExpenses 419,096 761,470Rent 35,000 228,539PreliminaryExpensesWrittenOff 25,734,309 -RemunerationtoAuditors -StatutoryAudit 15,045 15,203-TaxAudit 10,000 10,000-OtherServices - -BadDebts 973,825 Less-ProvisionforDoubtfulDebts 973,825 - -ProvisionforDoubtfulDebts - 9,683,726 Total 27,947,416 13,036,376
Schedule J FINANCE COSTS BankCharges 83,710 84,594Interest - - Total 83,710 84,594
SCheDuleS AnneXeD to AnD FoRMInG pARt oF the ConSolIDAteD pRoFIt & loSS ACCount FoR the YeAR enDeD 31
St MARCh, 2011
46
GI enGIneeRInG SolutIonS lIMIteD
Schedule k
Significant Accounting Policies and Notes to Accounts to
the Consolidated Financial Statements:
I. Significant Accounting Policies
1. Basis & Principles of Consolidation
i. Theconsolidationofaccountsisdoneinaccordance
withtheGenerallyAcceptedAccountingPrinciples
(‘GAAP’)inIndiaandmeettherequirementsofthe
AccountingStandard 21 (AS– 21) “Consolidated
Financial Statement” issued by the Institute of
CharteredAccountantsofIndia.
List of subsidiary considered in the consolidated
financialstatements
Name of Nature of Country of Extent of
the Entity Relationship Incorporation holding as on
31st March
2011
Genesys Subsidiary USA 100%
Enterprises
Inc.
ii. Useofestimates–ThePreparationofConsolidated
financial statements in accordancewith GAAP
requires management to make estimates and
assumptions that affect the reported amount of
assetsandliabilitiesandthedisclosureofcontingent
liabilities on the date of the financial statements.
Actualresultsmaydifferfromtheseestimates.Any
revisions to accounting estimates are recognized
prospectivelyincurrentandfutureperiods.
iii. The consolidated financial statements of the
group have been prepared based on a line-by-line
consolidationofProfit&LossAccountfortheperiod
ended31stMarch,2011andBalanceSheetasonthat
datebyaddingtogetherthebookvaluesoflikeitems
ofincome,expenses,assetsandliabilities.Allinter-
companybalancesandtransactionsareeliminatedon
SCheDuleS
consolidation.TheConsolidatedfinancialstatements
havebeenpreparedinIndianRupees.
2. Foreign Currency Translation
IncaseoftheConsolidatedAccounts,thesummarized
revenueandexpensetransactionsreflectedinProfit&
LossAccounthavebeentranslatedintoIndianRupees
atanaverageofmonthlyexchangerate.Theassetsand
liabilitiesintheBalanceSheethavebeentranslatedinto
IndianRupeesattheclosingexchangerateattheyear-
end.Theresultanttranslationexchangegain/losshave
beendisclosedasExchangeFluctuationReservewhich
isreflectedunderReservesandSurplus.
II. Other Significant Accounting Policies
ThesearesetoutintheSignificantAccountingPolicies
fortherespectivefinancialstatementsoftheCompany
anditsSubsidiaryCompany.
III. Notes to Accounts
1. ContingentLiabilities:`Nil
(Previousyear`Nil).
2. Disclosure requirements as per the Accounting
Standard–18(AS–18)“RelatedPartyDisclosure”
issuedbytheInstituteofCharteredAccountantsof
India.
ListofRelatedParties:-
A. key Management Personnel
Name of Personnel Designation
Mr.SajidMalik ManagingDirector
Mrs.SarojaMalik Director
Mr.SohelMalik President–GenesysInc.,USA
B. Principal Shareholder
-M/sKilamHoldingsLtd.,Mauritius
C. Associate Enterprises
-M/sGenesysInternationalCorporationLtd.,India
-M/sVenturaSecuritiesLimited,India
47
AnnuAl RepoRt 2010-11
Details of Transactionswith related parties are as
follows:
Particulars Year Year
ended 31st ended31st
March 2011 March2010
` `
Transactionsduringtheyear-
RentPaid–
VenturaSecuritiesLimited 35,000 -
Advancetakenfrom/
ReimbursementofExpenses
byGenesysInternational
CorporationLtd. 3,29,83,468 71,55,742
AdvanceRepaid/
Reimbursement
ofExpensestoGenesys
InternationalCorporationLtd. 60,00,000 1,25,83,734
Closing Balance -
AmountPayabletoGenesys
InternationalCorporationLtd. 3,58,07,353 88,23,885
3. (a) TheCompanyoperatesonlyinsinglePrimary
Segment i.e.Engineeringbasedservices for
thepurposeofAS–17Segmentalreporting.
(b) The disclosure requirement in respect of
secondarysegment(geographicalsegment)as
pertheAccountingStandard-17isasunder:
SECONDARY SEGMENT
(Geographical Segment based on sales continent wise)
Segment For the Year FortheYear
Revenue ended 31st March ended31stMarch
2011 2010
NorthAmerica 24,59,075 `1,36,78,230
MiddleEast 97,88,226 -
Asia 14,72,100 -
Total Revenue
from Operations ` 1,37,19,401 ` 1,36,78,230
4. In accordancewith the Accounting Standard
20(AS–20)“EarningperShare”issuedbythe
InstituteofCharteredAccountantsofIndia,basic
anddilutedearningpershareiscomputedusing
weightedaveragenumberofsharesoutstanding
duringtheyear.
As at Asat
March 31, March31,
2011 2010
Weightedaverage
numberofshares
usedasdenominator
forcalculating
Basicearning
per share 86,11,878 76,26,399
Weightedaverage
numberofshares
usedasdenominator
forcalculating
Dilutive earning
per share 86,11,878 76,26,399
NetProfit/(Loss) ` `
aftertaxation (1,77,16,933) (65,60,379)
Basic EPS ` (2.06) `(0.86)
Diluted EPS ` (2.06) `(0.86)
NominalvalueofShares `10 `10
5. Current Tax and Deferred Tax
Provision for Current Tax is made as per the
local tax laws of respective countries. The
Company has estimated deferred tax asset/
liability in accordancewith the provisions of
AccountingStandard–22“AccountingforTaxes
onIncome”issuedbytheInstituteofChartered
AccountantsofIndia.Thedetailsofdeferredtax
assetisgivenbelow-
48
GI enGIneeRInG SolutIonS lIMIteD
Signatures to Schedules ‘A’ to ‘k’As per our Report of even date attachedFor DIxIT DATTATRAY & ASSOCIATES For and on behalf of the Board of DirectorsCHARTERED ACCOUNTANTSFirm registration no. : 102665w
D. B. DIxIT SAJID MALIk GANAPATHY VISHwANATHANPROPRIETOR MANAGINGDIRECTOR DIRECTORMembershipNo.40032 DEERAJ NAIRMUMBAI,25
thJuly,2010 COMPANYSECRETARY
Particulars As at Asat
March 31, March31,
2011 2010
` `
Deferred Tax Assets
UnabsorbedLosses - 17,44,522
ProvisionforEmployee
Benefits 6,256 3,01,838
ProvisionforDoubtful
Debts 26,91,360 32,16,692
PreliminaryExpenses 50,991 1,12,001
Total 27,48,607 53,75,063
Deferred Tax Liability
FixedAssets
(Depreciation/Amortization) 18,117 1,67,558
Net Deferred Tax
(Liability)/Assets 27,30,490 52,07,505
Deferred Tax Assets arising on account of
unabsorbed losses, provisions for employees’
benefitsanddoubtfuldebtsetc.arenotrecognized
intheabsenceofvirtualcertaintyoffuturetaxable
incomeagainstwhichdeferredtaxassetscanbe
setoff.
6. Other Notes to Accounts
ThesearesetoutintheNotestoAccountsforthe
respectivefinancialstatementsoftheCompanyand
itsSubsidiaryCompany.
7. Figurespertainingtothesubsidiarycompanyhave
been reclassifiedwherever necessary to bring
them in linewith theparent company’s financial
statements.
8. Figures for previous year have been re-grouped/
re-classifiedwherever necessary to conform to
currentyear’spresentation.
49
AnnuAl RepoRt 2010-11
PARTICULARS FOR THE YEAR ENDED 31ST FORTHEYEAR MARCH 2011 ENDED31ST MARCH2010 ` ` `
A CASH FLOw FROM OPERATING ACTIVITIES NetProfitbeforetaxasperProfitandLossaccount (15,917,033) (5,530,866) Adjustmentsfor: Depreciation&Amortisation 2,130,313 2,135,472 Interestincome (5,119,530) (3,900,609) Preliminaryexpenditurewrittenoff 25,734,309 - 22,745,092 (1,765,137) OperatingProfitbeforeworkingcapitalchanges 6,828,059 (7,296,003) Adjustmentsfor: (Increase)/DecreaseinTradeReceivables (275,321) 29,458,884 (Increase)/DecreaseinOtherCurrentAssets - 228,470 (Increase)/DecreaseinLoans&Advances 446,581 5,970,331 Increase/(Decrease)inCurrentLiabilitiesandProvisions 25,438,830 (246,283) 25,610,090 35,411,402 CASH GENERATED FROM OPERATIONS 32,438,149 28,115,399Taxes(Paid)/Refund (405,043) (805,577) NET CASH FLOw FROM OPERATING ACTIVITIES 32,033,106 27,309,822CASH FLOw FROM INVESTING ACTIVITIES Purchaseoffixedassets(IncludingCapitalAdvances) - (5,200) Interestincome 5,119,530 3,900,609 LoantoOtherBodyCorporates (4,914,748) (23,492,070) NET CASH USED IN INVESTING ACTIVITIES 204,782 (19,596,661)CASH FLOw FROM FINANCING ACTIVITIES ProceedsfromIssueofShares - 19,800,000 NetProceeds/(Repayment)from/ofUnsecuredLoans - (300,000) MiscellaneousExpenditure (25,734,309) - NET CASH FLOw FROM FINANCING ACTIVITIES (25,734,309) 19,500,000 NET INCREASE IN CASH & CASH EQUIVALENTS 6,503,579 27,213,161 Exchangedifferenceontranslationofforeign currencyaccounts/deposits (2,076,060) (27,830,298) CASH & CASH EQUIVALENTS (OPENING BALANCE) 394,695 1,011,832 CASH & CASH EQUIVALENTS (CLOSING BALANCE) 4,822,214 394,695
ConSolIDAteD CASh FloW StAteMent FoR the YeAR enDeD 31St MARCh, 2011
ThisistheCashFlowstatementreferredtoinourreportofevendate.
For DIxIT DATTATRAY & ASSOCIATES For and on behalf of the Board of DirectorsCHARTERED ACCOUNTANTSFirm registration no. : 102665w
D. B. DIxIT SAJID MALIk GANAPATHY VISHwANATHANPROPRIETOR MANAGINGDIRECTOR DIRECTORMembershipNo.40032 DEERAJ NAIRMUMBAI,25
thJuly,2011 COMPANYSECRETARY
50
GI enGIneeRInG SolutIonS lIMIteD
Sr.No.Nameof
theSub-
sidiary
Com-
pany
Country
Report-
ing
Cur-
rency
Ex-
change
Rate
Capital
Reserves
TotalAssets
TotalLi-
abilities
Invest-
ment
other
than
invest-
mentin
subsidi-
ary
Turnover
Profitbefore
taxation
Provisionfor
taxation
Profitafter
taxation
Pro-posed
Divi-dend
1Genesys
Enter-
prises
Inc.
USA
USD
45.14248,563,410(35,697,931)
237,152,87624,287,396-
-(913,396)
417,924
(1,331,319)
-
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te
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195
6 R
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uB
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(Amountin`)
GI.ENGINEERING.SOLUTIONS.LIMITEDRegistered.Office.:.73-A,.SDF-III,.SEEPz,.Andheri.(E),.Mumbai.-.400096
ATTENDANCE.SLIP
(For physical holding) (For Demat holding)
Regd. Folio No. Client ID.
No. of Shares held D.P. ID.
I Certify that I am a Member / Proxy for the Member of the Company.
I hereby record my presence at the Fifth.Annual.General.Meeting of the Company at Kohinoor Continental Andheri-Kurla Road, Andheri (East), Mumbai - 400059 on Thursday, September 22, 2011 at 3.00 p.m.
Members’ / Proxy’s Name in Block Letters
Signature
Note: Please fill up this attendance slip and hand it over at the entrance of the meeting hall.
................................................................CUT HERE.......................................................................
GI.ENGINEERING.SOLUTIONS.LIMITED
Registered.Office.:.73-A,.SDF-III,.SEEPz,.Andheri.(E),.Mumbai.-.400096
PROXY.FORM
(For physical holding) (For Demat holding)
Regd. Folio No. Client ID.
No. of Shares held D.P. ID.
I / We of being a Member / Members of the Company, hereby appoint of or failing him / her of as my/our proxy to vote for me/us on my/our behalf at the Fifth.Annual.General.Meeting of the Company at Kohinoor Continental Andheri-Kurla Road, Andheri (East), Mumbai - 400059 on Thursday, September 22, 2011 at 3.00 p.m. and at any adjournment(s) thereof .
Signed this............. day of September, 2011 Signature
Note: This form, in order to be effective, should be duly stamped, completed and signed and must be deposited at the Registered Office of the Company, not less than 48 hours before the meeting.
Rupee 1Revenue
Stamp