Company Overview

Even though the company's operations not to the level of expectations, it showed an upward trend in its business activities and made profit during the year and the accumulated deficit carried to the Balance sheet is reduced to that extent.

Financial Highlights                        (Rupees in Lacs)

PARTICULARS              Year Ended    Year Ended    Year Ended
                         31.03.2012    31.03.2011    31.03.2010

INCOME                      772.74        541.47        502.79

Profit before Interest 
and Depreciation             27.08        151.38        131.72

Less: Interest               36.43         36.51         37.80

Depreciation                 49.38         51.32         40.47

Profit before Taxation       45.13         63.54         53.44

Net Profit after 
Taxation                     27.08         39.16         28.44

add : Surplus Brought 
Forward                    (338.53)      (377.69)      (406.13)

Add : Transfer               26.27

Deficit Carried to 
Balance Sheet               312.26        338.53        377.69

Dividend

The company has not declared any dividend for F.Y 2011-12.

Operational Review

Your Company has slowly and steadily shown revenue increases every year for the last 5 years and this is so in 2012 too. The Management of the Company has worked towards maintaining revenue generation and profit increase in sliding Indian economy and global economy. The continuing economic recession is forcing companies in India and overseas to cut costs and save more. This is in turn affecting your Company's business adversely. Keeping the economic environment, stiffening competition and low contract prices, your Company is exploring for projects with state companies and contracts that are of long term duration. Your Company was enjoying a very good relationship with the Indian private oil companies and was constantly being awarded with their exploration drilling contracts; unfortunately business from this segment is under stress due to the adverse economic conditions that is making private companies postpone investment.

Risk Management

As a mud logging service company, the Company is committed to ensure that effective risk management policies and practices are incorporated as fundamental aspects of all its business operations. The Corporate Risk Management Group of the Company has a comprehensive risk management policy in place, addressing primarily areas such as market, credit and operation risks. This policy seeks to minimise the risks generated by the activities of the Company. The group continuously develops and enhances its risk management and control procedures in order to better identify and monitor risks and to proactively take appropriate actions to mitigate the same.

Future Outlook

The financial year 2012-13 will be challenging for the Indian Industry as a whole and more so for the oil and gas segment. Foreign and private companies will still not invest in the oil and gas segment reasons being:

- High crude oil prices sustaining high inflation

- High commodity prices

- Tight monetary policy

- Continuous downward trend in the value of Indian currency

- Uncertainty in the Eurozone

Keeping in view such an economic scenario your Company plans to bid for projects with state oil companies that will continue to offer assured business and also engage us in longer term contracts. Of course the downside of this is that contractual prices tend to be low. To address this issue, your Company is planning review of operations to cut costs and identify activities that will lead to saving of resources.

Public Deposits

During the year, the Company has not accepted any deposit under Section 58A of the Companies Act, 1956.

Directors

During the year, Mr. Sreedhar Tripathy will retire by rotation at the ensuing Annual General Meeting of the Company and being eligible, offers himself for re-appointment.

Auditors

The Statutory Auditors, M/s. HEMANT MHAMBREY ASSOCIATES. Chartered Accountants have to be reappointed in ensuing AGM hence the members of the company are requested to consider their re-appointment.

FOREIGN EXCHANGE EARNING AND EXPENDITURE

During the year under review company had spent Rs.52,72,792/-on import of components, sensors and assemblies. An amount of Rs. 1,44,57,285/- is incurred as expenditure.

PERSONNEL AND OTHER MATTERS

As required by the provisions of Section 217(2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules, 1975, as amended, the names and other particulars of the employees are not given as no employee was coming under the provisions set ofsection217(2A).

Company is adopting latest technology in its operations and updating thereof is an ongoing process. Conservation of energy is given paramount importance and introduced energy efficient equipment's and instruments for its activities.

AUDIT COMMITTEE

The Company has formed an Audit Committee comprising of 3 directors. The terms of the reference of the committee are in line with the requirements as stipulated u/s 292 A of the Co. Act, 1956 and Corporate Governance as stated in Clause 49 of the Listing Agreement.

DIRECTORS' RESPONSIBILITY STATEMENT

The Directors confirm that in preparation of the annual accounts for the year ended March 31, 2012-

1. the applicable accounting standards had been followed along with proper explanation relating to material departures;

2. they had selected such accounting policies and applied them consistently and made;

3. judgments and estimates that are reasonable and prudent had been taken 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;

4. they had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956, for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities; and

5. they had prepared the annual accounts on a going concern basis.

CORPORATE GOVERNANCE AND COMPLIANCE

A report on corporate governance is annexed to this report. A certificate from Practicing Company Secretary with regards to the compliance of the corporate governance by the company is annexed to this report.

The company has fully complied with all mandatory requirements prescribed under clause 49 of the listing agreement. In addition, the company has also implemented some of the non-mandatory provisions of clause 49.

ACKNOWLEDGEMENTS

The Directors thank the clients for the confidence reposed, which has enabled the Company in successfully achieving the satisfactory performance.

The Directors also thank the Company's bankers, lenders, the Government of India, the Securities and Exchange Board of India, the Reserve Bank of India and other statutory authorities for their continued support to the Company.

The Directors express their gratitude for the support and guidance received from its shareholders.

The Directors also express their sincere thanks and appreciation to all the employees for their commendable teamwork, professionalism and contribution during the year.

For and on behalf of the Board

For GEOLOGGING INDUSTRIES LTD.

                                        By Order of the Board 

Place: Mumbai               For Geologging Industries Limited

                                            Sreedhar Tripathy

                                           Executive Director