annual report 2010-11€¦ · annual report 2010-11 ... management discussion & analysis ......

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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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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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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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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





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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.





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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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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


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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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


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


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


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


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


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


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


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


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


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


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


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


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


(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


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


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





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


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



` `


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



` `

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 - - -


29


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


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


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


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


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


(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


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


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


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


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


39


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


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




ConSolIDAteD BAlAnCe SheetAS At 31St MARCh, 2011

41


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



42


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



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


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


45


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


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


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


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



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


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



50


Sr.No.Nameof

theSub-

sidiary

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Capital

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TotalAssets

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Profitbefore

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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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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

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