1.  Company''s Background
 
 Genesys International Corporation Ltd. is engaged in providing
 Geographical Information Services comprising of Photogrammetry, Remote
 Sensing, Cartography, Data Conversion, state of the art terrestrial and
 3D geo-content including location based and other Computer based
 related services.
 
 2.  Contingent Liabilities:
 
   Particulars               As at March            As at March
 
                             31, 2011               31, 2010
 
                                Rs                     Rs
 
 Contingent Liabilities
 
 Bank Guarantees*            2,39,99,627            52,87,751
 
 Letter of Credit            7,42,050               62,91,330
 
 Estimated amount of claims
 against the company not
 acknowledged as debts in
 respect of :
 
 Disputed demand for          4,43,05,764           7,12,766
 
 Income Taxes
 
 *The guarantees are secured by Fixed Deposits worth Rs. 1,86,92,133
 (Previous year Rs. 13,54,641) and Letter of credit is secured by Fixed
 Deposits worth Rs. 10,00,000 (Previous year Rs. 81,43,816).
 
 3. The Company has obtained sanction for Post Shipment Line of Credit
 from State Bank of India. As on 31st March, 2011 outstanding amount is
 Rs. NIL. (Previous Year Rs. Nil).
 
 Post Shipment Line of Credit facility is Secured by Hypothecation of
 entire current assets of the company present & future, export bills and
 further secured by:
 
 - Hypothecation charge over all movables assets , equipments, fixtures
 of the company located at the Company''s offices at Bangalore and at 73,
 73A, 75B, 77A & 77C SDF-III, Seepz, Andheri (East), Mumbai.
 
 - Lien on Term Deposit Receipt of Rs. 93,85,851 (Previous year Rs.
 86,10,100).
 
 - Personal guarantees of Whole-time Director, Managing Director and
 Executive Director of the Company.
 
 - Pledge of Promoters'' shares having a market value of Rs. 14,32,96,186/-
 (Previous year Rs. 11,97,34,457) as on 31st March, 2011.
 
 During the year the Company has taken vehicle loans from Tata Capital
 Limited, and HDFC bank Ltd. which are fully secured by the
 hypothecation of the vehicles taken on finance.  Amount outstanding as
 on 31st March, 2011 is Rs. 1,92,34,098 (Previous Year Rs. Nil).
 
 Computation of Net Profit in accordance with section 349 of the
 Companies Act, 1956 and calculation of commission payable to
 Non-Executive Director :
 
 4.  Employee Benefits : The disclosure in accordance with the
 requirements of Accounting Standard -15 (Revised 2005) Employee
 Benefits are provided below -
 
 (a) Defined Contribution Plans –
 
 In respect of defined contribution plans, an amount of Rs. 75,51,906
 (Previous Year Rs. 56,66,694) has been recognized in the Profit & Loss
 account for the year towards employer share of PF Contribution.
 
 (b) Defined Benefit Plans –
 
 (i) The liability in respect of gratuity is determined as per actuarial
 valuation carried out as at Balance Sheet date. The present value of
 the obligation under such plan is determined using the projected unit
 credit method. Actuarial gains and losses are recognized in the Profit
 & Loss account for the period in which they occur.
 
 5. In accordance with the Accounting Standard – 22 (AS – 22)
 “Accounting for Taxes on Income” issued by the Institute of Chartered
 Accountants of India which became mandatory from 1st April 2001, the
 Company has considered the effect of timing differences and accordingly
 accounted for Deferred Tax.
 
 One of the Company''s units is entitled to a tax holiday under Section
 10 AA of Income Tax Act, 1961, in the current year. Deferred Tax Assets
 and Liabilities as at the balance sheet date resulting from timing
 differences between book profit and tax profit are not considered to
 the extent they are expected to get reversed within the tax holiday
 period. The break-up of net deferred tax assets/(liability) is as under
 -
 
 6.  Exchange Differences:
 
 During the year, realized and unrealized exchange gain amounting to Rs.
 55,11,597 (Previous Year exchange loss of Rs. 28,03,668/-) is included in
 the financial statements. There is no forward exchange
 contracts/options outstanding as on 31st March, 2011.
 
 7.  As at 31st March, 2011 no supplier has intimated the Company about
 its status as Micro or Small Enterprise or its registration with the
 appropriate authority under the Micro, Small & Medium Enterprises
 Development Act, 2006 (said Act) and to the best of the Company''s
 knowledge and belief, sundry creditors as at the year end do not
 include outstanding dues to parties or entities covered by the said
 Act.
 
 8.  (a) (i) The Balance Sheet of the foreign subsidiary/
 sub-subsidiary companies reflects diminution in the net worth/
 existence of net liabilities. In the opinion of the management,
 provision for diminution is not required in view of the long term
 nature of investments and future business plans of the foreign
 subsidiary/ sub-subsidiary.
 
 (ii) Sundry debtors includes Rs.419.94 lacs (Previous Year Rs.342.63 lacs)
 receivable from GEODC Limited, a sub-subsidiary company. Though the
 said company has net liabilities of Rs. 371.37 lacs (Previous Year Rs.
 220.24 lacs), no provision has been made in respect of the same since
 the management is confident of recovering the same in view of the
 future business plans of the said company.
 
 (b) The Company holds investments in Image Intelligence Inc. and net
 worth of the investee company has been fully eroded as on 31st
 December, 2010. Hence the management has decided to provide for Rs.
 396.18 lacs towards diminution in the value of investments being of
 permanent nature.
 
 9.  The Company is engaged in the business of rendering computer-based
 services. The development and sale of such services cannot be expressed
 in any generic unit. Hence, it is not possible to give the quantitative
 details of sales and certain information as required under paragraphs
 3, 4C and 4D of part II of Schedule VI to the Companies Act 1956.
 
 10.  The Ministry of Corporate Affairs, Govt. of India, vide general
 circular no. 2 & 3 dated 8th February, 2011 and 21st February, 2011
 respectively has granted a general exemption from compliance with
 section 212 of the Companies Act, 1956 subject to fulfillment of
 conditions stipulated in the circular. The Company has satisfied the
 conditions stipulated in the circular and hence it is entitled to the
 exemptions. Necessary information relating to the subsidiaries has been
 included in the consolidated financial statements.
 
 11. As per the scheme of amalgamation sanctioned by the High Court,
 Mumbai vide order dated 16.12.2010 Genesys Worldeye Limited a wholly
 owned subsidiary company has been merged with the Company w.e.f.
 01.04.2010.  As such current year''s figure includes figures of Genesys
 Worldeye Limited w.e.f. 01.04.2010; therefore previous year''s figures
 are not comparable with the current year''s figures. Figures for
 previous year have been re-grouped/ re-classified wherever necessary to
 conform to current year''s presentation.