i. Equity Shares

The company has one class of equity shares having a par value of ' 10 each. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

ii. 0.5% Non Cumulative Redeemable Preference Shares

0.5% Non Cumulative Redeemable Preference shares would be redeemable at the option of the company at any time within a period of 20 years from the date of issue. These shares would carry a fixed non-cumulative dividend of 0.5% per annum. 14,60,000 shares were alloted through Board meeting held on 25th February, 2014 and pursuant to special resolution passed at Extra ordinary General meeting of the company held on 10th February,2014

1. The Company is a Sick Industrial company within the meaning of clause (o) of sub-section (i) of section 3 of the Sick Industrial Companies (Special Provisions) Act 1985.

2. Contingent Liabilities:

Particulars                                       As on       As on 
                                               31/03/2013   31/03/2014
                                                  (Rs)        (Rs)

i) Excise duty under adjudication                854736       854736

ii) Sales Tax under Appeal                       473536       473536

Sales Tax under Appeal                           103481       103481

iv) Income Tax under Appeal                     2537354      2537354

v) Bank Guarantee for Electricity               1000000      1000000

vi) Liability on account of non-             Amount not   Amount not
fullfillment of export obligations          ascertained  ascertained
/ EPCG Scheme
                                      (refer Note below)

The above have not been provided for in the accounts as in the opinion of the company the demands are not sustainable to the company.

3. The company is in the process of identification of micro, small and medium enterprise suppliers as defined under the provisions of "Micro, small and medium enterprises development Act, 2006". The relevant information in this regard shall be given when it is complied

4. The cash flow Statement As per AS 3 is as per Annexure 'A'

5. Related Party information as identified by the management as per Accounting Standard - 18 on 'Related Party Disclosure' issued by the Institute of Chartered Accountants of India.

Relationships

a) Joint Venture         Nil

- Mr. Himalay Dassani

- Mr. G. K. Bhandari

- Mr. Rajkishan Singh

c) Enterprise over which key - Genesis E Tech Limited management Personnel exercise - Dreamworks Pictures significant influence or Control

(Formerly Known as - Shrishti Entertainment Pvt. Ltd.)

d) Relatives of Key Management

- Mrs. Bhagyashree Dassani Personnel

- Mr. Abhimanyu Dassani

- Smt. Shakuntala Dassani

- Mr. Pannalal Dassani

- Ms. Avantika Dassani

Note: A related party relationship is as identified by the Company and relied upon by the Auditors.

6. Earning Per Share (EPS) : For calculating EPS Net Profit/(Loss) after Tax as shown in P & L A/c. is taken as numerator and weighted average number of equity shares taken as denominator are 30,35,000 share of Rs.10/- each

7. No disclosure is required under AS-24 on "Discontinuing Operations" issued by the Institute of Chartered Accountants of India as the company has not discontinued any line of its activity/product line during the year.

8. The company is in the process of conducting an exercise for identification of impaired assets, if any, as required AS-28 on "Impairment of Assets" issued by the Institute of Chartered Accountants of India.

9. Disclosure of Derivative Instruments :

During the year the company has not entered into any forward exchange contracts as such there are not outstanding derivative contract as at 31st March, 2013 to be disclosed as per the ICAI announcement.

10. The Company has not appointed a whole time Company Secretary under Section 383A of the Companies Act,1956. However company is trying to fill up the vacancy by finding out a suitable candidate.

11. One of the foreign Machinery supplier, i.e., Glint Global (Unsecured Loans) has also filed a suit against the company. The same has been disputed as the machinery did not comply with the order specification as to origin and quality.