GSS America Infotech

1.  Acquisition in 2007-08
 
 GSS America Inc, a wholly owned subsidiary of GSS America Infotech Ltd.
 acquired 100% stake in System Dynamix Corporation, a US based
 corporation with effect from January 01, 2008. The Consolidated
 accounts for the year ended 31st March 2008 include the results of
 System Dynamix Corporation for the three months from 1st January 2008
 to 31st March 2008.
 
 2.  Company’s IPO in 2007-08
 
 During the year the Company has issued 34,97,495 shares of Rs. 10/-
 each at a premium of Rs. 390/- and raised Rs. 13989.98 Lakhs. Out of
 the IPO proceeds received in March 2008, Rs. 1215.71 Lakhs were
 incurred towards issue expenses and the balance amounts are pending for
 utilization as per the prospectus.
 
 3.  Utilisation of securities premium
 
 The share issue expenses of Rs. 1215.71 Lakhs have been set off against
 balances available in securities premium.
 
 4.  Investment of Un utilised monies raised from public issue
 
 The unutilized monies out of the public issue have been invested on
 short term deposits and other interest bearing liquid investments.
 
 5.  The Company operates in a single business segment i.e., software
 services and providing services to single geographical location i.e.
 USA for the current financial year.
 
 6.  Contingent Liability:
 
 As per the requirements of Bombay Stock Exchange and the listing
 agreement , the Company submitted 1% of the public issue proceeds as
 Security Deposit. Out of this the company placed cash deposit of Rs.
 76,94,489 and a bank guarantee for equal amount.
 
 7.  Investment in Subsidiaries
 
 The investments in the subsidiaries are classified under long term
 investments and are carried forward at cost.
 
 8.  Related Party disclosures:
 
 a) Related party transaction during the year ended 31st March 2008 is
 with GSS America Inc, Chicago, USA and Infospectrum Consulting Inc.,
 which are subsidiaries of GSS America Infotech Ltd, to the tune of Rs.
 284,490,918/- and Rs. 94,402,646 respectively towards software
 outsourcing revenue.
 
 b) Managerial remuneration paid to the Managing Directors Rs.
 19,571,404
 
 9.  Loans, Advances and sundry debtors stated in the Balance Sheet are,
 in the opinion of the management realizable in the ordinary course of
 business.
 
 10.  Quantitative details:
 
 The company is engaged in the development and maintenance of Computer
 Software, the production and sales of such software cannot be expressed
 in any generic unit. It is not possible to give the quantitative
 details of sales and other information as required under the paragraph
 3, 4C and 4D of Part – II of Schedule VI of the Companies Act, 1956.
 
 11.  Deferred tax liability is created to the extent of Rs.1,69,314
 since the timing difference is unlikely to reverse within the period
 during which the company is eligible for exemption of its profits u/s
 10 A of the Income Tax act
 
 12.  Earning per share for the FY 2007-2008 is Rs. 14.81 compared to
 previous year EPS of Rs. 15.07.
 
 13.  The figures of the previous year have been regrouped and
 reclassified where ever necessary, to confirm to the current year
 figures.