To  The Members of CAPRICORN SYSTEMS GLOBAL SOLUTIONS LIMITED
 
 The Directors have pleasure in presenting the Twenty Seventh Annual
 Report of your Company together with the Audited Accounts for the
 financial year ended 31st March'' 2012 and the report of the Auditors
 thereon.
 
                                                     (Rs. Lakhs)
 
 Particulars                             2011-12       2010-11
 
 Total Income                             241.99        151.87
 
 Expenditure                              229.85        140.83
 
 Profit before Tax'' 
 Interest and Depreciation                 12.14         11.04
 
 Less : Depreciation                        7.56          6.47
 
 Less : Interest                            0.21          0.24
 
 Profit before Tax                          4.37          4.33
 
 Provision for Income Tax                   2.18          2.35
 
 Provision for Deferred Ta x Liability      0.71          0.00
 
 Net Profit after Tax                       1.48          1.98
 
 Profit brought forward                    58.99         57.01
 
 Balance available for appropriation       60.47         58.99
 
 Transferred to General Reserve             0.00          0.00
 
 Provision for Dividend                     0.00          0.00
 
 Provision for Tax on Dividend              0.00          0.00
 
 Profit carried to Balance Sheet           60.47         58.99
 
 OPERATIONS & FUTURE PROPSECTS:
 
 The operations of the company have shown a healthy growth of about 60%
 on account of execution of new works during the year. The company has
 set in place a dedicated business development team for exploring the
 new and profitable business opportunities. The company expects to
 benefit from this initiative in the ensuring period.
 
 CORPORATE GOVERNANCE:
 
 The Corporate Governance Report regarding compliance of the conditions
 of corporate governance by your Company as stipulated in clause 49 of
 the Listing Agreement entered into with The Bombay Stock Exchange
 Limited is annexed to this Report.
 
 MATERIAL CHANGES:
 
 There are no material changes affecting the business of the Company
 after the date of the Balance Sheet.
 
 DEPOSITS:
 
 During the year under review the Company has not accepted any deposits
 from public as defined under the provisions of Section 58 A of the
 Companies Act'' 1956
 
 DIVIDEND:
 
 No dividend is recommended by the Board of Directors for the year 2011
 – 2012
 
 DIRECTORS:
 
 Sri G. Surender Reddy and Sri Anand Deshmukh'' Directors retire by
 rotation and being eligible offer themself for re appointment. The
 Board recommends their re appointment.
 
 Sri G. Ramesh Babu was appointed as an Additional Director of the
 Company in the Board Meeting held on 13th August'' 2012 and holds office
 till the date of the ensuing Annual General Meeting. The Company has
 received notice along with the required deposit for appointment of the
 aforesaid Director as Director of the Company liable to retire by
 rotation. The Board recommends his appointment.
 
 Sri S. Jagadiswar Reddy has resigned from the Board of the Company
 during the year. The board placed on records its appreciation for the
 valuable services rendered by him to the company.
 
 AUDITORS:
 
 M/s Satyanarayana & Co.'' Chartered Accountants'' the Statutory Auditors
 of the Company retire at the conclusion of the ensuing Annual General
 Meeting and are eligible for re-appointment. The Company has received a
 notice stating that they would be within the limits as prescribed under
 the provisions of Section 224 (1B) of the Companies Act'' 1956. The
 Board recommends their re-appointment
 
 PERSONNEL:
 
 During the year under review'' there were no employees drawing
 remuneration in excess of the limits laid down in Section 217(2A) of
 the Companies Act'' 1956 read with the Companies (Particulars of
 Employee''s) Rules'' 1975.
 
 DIRECTORS'' RESPONSIBILITY STATEMENT:
 
 Pursuant to provisions of Section 217 (2AA) of the Companies Act'' 1956
 we'' the Board of Directors of the Company hereby state:
 
 (i) that in the preparation of the annual accounts for the year ended
 31st March'' 2012'' the applicable accounting standards had been followed
 along with proper explanation relating to material departures;
 
 (ii) that we had selected such accounting policies and applied them
 consistently and made judgments and estimates that are reasonable and
 prudent so as to give a true and fair view of the state of affairs of
 the Company at the end of the financial year and of the profit of the
 Company for that period;
 
 (iii) that we had taken proper and sufficient care for the maintenance
 of adequate accounting records in accordance with the provisions of
 this Act for safeguarding the assets of the Company and for preventing
 and detecting fraud and other irregularities;
 
 (iv) that we had prepared the annual accounts for the year ended 31st
 March'' 2012 on a going concern basis.
 
 CONSERVATION OF ENERGY'' TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
 EARNINGS AND OUTGO:
 
 The disclosures required under Section 217(1) (e) of the Companies Act''
 1956 read with Companies (Disclosure of particulars in the Report of
 the Board of Directors) Rules'' 1988'' for the year ended March 31'' 2012
 are as follows:
 
 A.  CONSERVATION OF ENERGY:
 
 a.  Adequate measures have been taken to conserve energy wherever
 possible.
 
 b.  Additional investments and proposals'' if any'' being implemented for
 reduction of consumption of energy: NIL
 
 c.  Impact of measures for reduction of energy consumption / energy
 conservation: NIL
 
 B.  RESEARCH AND DEVELOPMENT & TECHNOLOGY ABSORPTION :
 
 1.  The company has an Inhouse team for upgradation / development of
 technologies and products.
 
 2.  Benefits Derived : Faster turn around time in delivery of the
 projects.
 
 3.  Future plan of action : Enhancing the capacity & capability of the
 team as per growth needs of the company.
 
 C.  In case of imported technology'' imported during the last 5 years
 reckoned from the beginning of the financial year'' following
 information may be furnished:
 
 a.  Technology Imported: N. A.
 
 b.  Year of Import: N. A.
 
 c.  Has technology fully absorbed areas where this has not been taken
 place'' reasons thereof and plan of action: N. A.
 
 D.  FOREIGN EXCHANGE EARNINGS AND OUTGO:
 
 1.  Activities relating to exports'' initiatives taken to increase
 exports'' development of new export markets for products and services''
 and export plans:
 
 The entire software developed is exported to the Company belonging to
 the promoters. The management does not have any immediate plans to
 export its services to other countries.
 
 2.  Total Foreign Exchange used and earned:
 
                                         2011 - 2012     2010 - 2011
 S.
 No.  Particulars of the 
      transaction                         (in Rs.)          (in Rs.)
 
 1.  Total Foreign Exchange earnings     23''812''269       14''964''656
 
 2.  Foreign Exchange outgo                 Nil              Nil
 
 a. on account of import of Equipment       Nil              Nil
 
 b. on account of Travel                    Nil              Nil
 
 Total Foreign Exchange outgo               Nil              Nil
 
 COMPLIANCE CERTIFICATE:
 
 The Company has complied with the provisions of Corporate Governance
 under listing agreement.
 
 A Certificate from the Auditors of the Company regarding compliance of
 conditions of Corporate Governance
 
 as stipulated under clause 49 of the listing agreement is attached to
 this report.
 
 ACKNOWLEDGEMENTS:
 
 The Board places a record of appreciation to the Bankers'' Government
 and Non Government authorities'' Members and Employees of the Company
 for their continued support and confidence in the Company.
 
                                     For and on behalf of the Board
 
                     For Capricorn Systems Global Solutions Limited 
 
 Place: HYDERABAD
 
 Date : 03 September 2012                                       Sd/-
 
                                                     S. Man Mohan Rao 
 
                                                    Managing Director