| 1. Company's Background
GI Engineering Solutions Ltd. is formed to provide Information
Technology, Engineering Services and other related services.
2.Rights, Preferences and restrictions attached to shares Equity Shares:
The Company has one class of equity shares having a par value of Rs
10/- per share. Each holder of equity shares is entitled to one vote
per share. In the event of liquidation of the Company, the holders of
equity shares will be entitled to receive any of the remaining assets
of the company, after distribution of all preferential amount in
proportion to their shareholding.
Redeemable Cumulative Preference Shares:-
The Board of Directors, pursuant to approval of the Shareholders, had
allotted on March 30, 2012 70,00,000 4.5% Redeemable Cumulative
Preference Shares of face value of Rs 10/- each to M/s Genesys
International Corporation Limited (hereafter 'GICL') with the tenure of
3 year from the date of allotment. The Company, in view of its current
financial position has requested the Board of Directors of GICL for
extension of tenure of the above preference shares by another 3 years.
On receipt of approval from the Board of Directors of GICL, the Company
has extended tenure of the said Redeemable Preference Shares by 3
years, effective March 30, 2015; with the option given to the company
to redeem it earlier.
3. CONTINGENT LIABILITIES:
PARTICULARS As at
March 31, 2015 March 31, 2014
Rs Rs
Contingent Liabilities
Estimated amount of claims against
the company not acknowledged as
debts in respect of :
Disputed Income Tax Matters 3,019,029 1,816,017
4. Disclosure requirements as per the Accounting Standard - 18 (AS -
18) "Related Party Disclosure" issued by the Institute of Chartered
Accountants of India.
List of Related Parties:-
A. Wholly owned Subsidiary Company
M/s Genesys Enterprises Inc., USA
5. Employee Benefits :
Post-employment benefits plans
(a) Defined Contribution Plans -
In respect of the defined contribution plans, an amount of Rs Nil
(Previous Year: Rs 25,830) has been provided in the Profit & Loss
account for the year towards employer share of PF contribution.
(b) Defined Benefit Plans -
The Liability in respect of gratuity is determined for current year as
per management estimate Rs 22,500 (previous year Rs 16,138 as per
actuarial valuation) carried out as at Balance Sheet date. Amount
recognized in profit and loss account Rs 6,362 (previous year Rs
20,174)
6. In accordance with the Accounting Standard - 22 (AS - 22)
"Accounting for Taxes on Income" issued by the
Institute of Chartered Accountants of India, details of deferred tax
assets estimated by the Company is given below -
7. The Company operates only in single Primary Segment i.e.
Engineering based services for the purpose of AS - 17 Segmental
reporting.
The disclosure requirement in respect of secondary segment
(geographical segment) as per the Accounting Standard - 17 is as under:
8. The Balance Sheet of the Subsidiary Company reflects diminution in
the net worth after considering the losses incurred. The said
subsidiary company will incur significant loss if any part of the
accounts receivable and notes receivable become uncollectible. However
the Company continues to value the investments at cost. In the opinion
of the management, provision for diminution is not required in view of
the strategic nature of investments, future business plans and belief
of the management of the subsidiary company on the recoverability of
accounts receivable and notes receivable.
9. Exchange Differences
During the period realized and unrealized exchange loss amounting to Rs
33,354 (Previous Year: exchange gain of Rs3,76,001) is included in the
profit and loss account.
10. Figures for the previous year have been re-grouped/re-classified
wherever necessary to conform to current year's presentation.
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