contents7 52 nd annual report dear fellow shareholders, i take immense pleasure in sharing with you...

CONTENTS

COMPANY’S OVERVIEW• CorporateInformation..........................................................................05• MessageFromChairman.....................................................................06• FinancialHighlights(Standalone)........................................................08

STATUTORY REPORTS• Noticeof52ndAnnualGeneralMeeting............................................ 88• Directors’Report................................................................................... 09• SecretarialAuditReport.......................................................................26• ReportonCorporateGovernance.................................................... 34

FINANCIAL STATEMENTS (Standalone)• IndependentAuditors’Report............................................................ 40• BalanceSheet.......................................................................................46• StatementofProfitandLoss................................................................ 47• CashFlowStatement........................................................................... 49• NotestotheFinancialStatements......................................................50

FINANCIAL STATEMENTS (Consolidated)• IndependentAuditors’Report............................................................ 65• BalanceSheet.......................................................................................69• StatementofProfitandLoss................................................................ 70• CashFlowStatement........................................................................... 71• NotestotheFinancialStatements......................................................73

5 52nd Annual Report 17-18

BOARD COMMITTEES:

Audit Nomination and Remuneration Share Transfer and Grievances

SHRISANDIPPARIKH SHRISANDIPPARIKH SHRISANDIPPARIKH

SHRIBHALABHAIPATEL SHRIBHALABHAIPATEL SHRIRAKESHSHAH

SHRISAMIRMANKAD #SHRIMAHESWARSAHU SHRISAMIRMANKAD

#SHRIMAHESWARSAHU

COMPANY SECRETARY:SHRICHINTANPATEL

PROFESSIONAL ACQUAINTANCES:

Statutory Auditors Internal Auditors Corporate Law Advisors

M/s.BJS&Associates,

CharteredAccountants,

Ahmedabad

M/s.DharmeshParikh&Co.,

CharteredAccountants,

Ahmedabad

M/s.UmeshParikh&Associates

CompanySecretaries,

Ahmedabad

INVESTORS’ CONTACT:Registered Office: Registrar & Transfer Agents:GujaratChambersBuilding,AshramRoad,Ahmedabad-380009.

Phone:079-26554100/26575757

Fax:079-26584040

EMail:[email protected]

Website:www.gsecl.co.in

CIN:U52100GJ1965PLC001347

BigshareServicesPrivateLimited

A/802,SamudraComplex,NearGirishColdDrinkCrossRoad,OffCGRoad,Ahmedabad-380009.

Phone:079-40024135

EMail:[email protected]

Website:www.bigshareonline.com

BANKERS: STATEBANKOFINDIA#Appointedason27.04.2018

BOARD OF DIRECTORS:SHRIRAKESHSHAH CHAIRMAN&MANAGINGDIRECTORSHRISAMIRMANKAD CEO&WHOLETIMEDIRECTORSHRISHAISHAVSHAH WHOLETIMEDIRECTORSMTRAJISHAH WHOLETIMEDIRECTORSHRIBHALABHAIPATEL DIRECTORSHRISANDIPPARIKH DIRECTOR#SHRIMAHESWARSAHU DIRECTOR

CORPORATE INFORMATION

Transformation Literally Means Going Beyond

Your Form

MESSAGE FROM CHAIRMAN


DearFellowShareholders,

I take immensepleasure insharingwithyouall thehighlightsofourCompany’sperformanceforthefinancialyearendedMarch31,2018.

Asanorganisation,wehavealwayssetoureyesforthefutureandcapitalisedonopportunities.Asweareconstantlypursuingexcellenceandembracingchange.Throughinnovation,wearecommittedtoofferexcellentservicesandcreategreatervalueforourstakeholdersandcustomers.

Thebygonefinancialyearwasayearofgreatcontrasts.Amidststernchallenges,wefoundgreatopportunities.Theresultswereareflectionofthetoughtimes.ButourcommitmenttoourcoreCompanyvaluesandbusinessphilosophyinspireustotakeonthechallengesheadon.Guidedbyanexperiencedseniorleadershipandbackedbyconsistenteffortsandteamwork,Icanassureyouthatwearerespondingtothechallengesverywell.Ourfocusistoprovidebestintegratedcargohandlingserviceswithatmostalllatestequipmentandsufficientmanpower.

IamveryhappytoinformyouthatourconsistenteffortstogetspaceattheairportpremisesatVisakhapatnamhavebeen successful.Webeganour operations from theairport premises inNovember 2018.Weexpecta verygoodgrowthatthisairport.

Wewillcontinuetolookfornewopportunitytoaddvaluetoourshareholders.

Financial Performance

The consolidated financial performance for the 12 months ended March 31, 2018, is as follows:

• TotalincomefromoperationsatRs.38416.76LakhsfortheyearendedMarch31,2018

• EBIDTAatRs.1114.96LakhsfortheyearendedMarch31,2018

• EBITofRs.824.03LakhsfortheyearendedMarch31,2018

• PATofRs.421.59LakhsfortheyearendedMarch31,2018

• EPSfortheyearendedMarch31,2018wasRs.5.58forafacevalueofRs.10/-pershare

Overall,ourfocuscontinuestobeondrivingtheCompany’sRevenueandProfitabilitygrowth,increasingReturnonCapitalEmployedandassetutilizationsandimprovingcashflowsacrossallourbusinesses.

BeforeIconclude,Iwouldliketothankyouforyoursupport,consistentcommitment,engagementandencouragement.Wecontinuetoseekyourparticipationinournextlegofgrowthandfootprintexpansion.

Sincerely,RAKESH SHAH

Chairman & Managing Director

MESSAGE FROM CHAIRMAN

852nd Annual Report 17-18

FINANCIAL HIGHLIGHTS (STANDALONE)

OUR FIVE YEAR SNAPSHOT


To,TheMembers,

YourDirectorsarepleasedtopresentherewiththe52ndAnnualReportofyourCompanytogetherwiththeAuditedStatementofAccountsandtheAuditors’Reportforthefinancialyearended,31stMarch,2018.

STANDALONE FINANCIAL AND OPERATIONAL HIGHLIGHTS: (₹ in Lakhs)Particulars 2017-18 2016-17NetRevenuefromOperations 37715.42 36235.34OtherOperatingRevenue 252.00 202.51Revenue from Operations 37967.42 36437.85 OtherIncome 424.20 166.24Total Revenue 38391.62 36604.10Profit before financial charges, Depreciation and taxation 1090.62 816.20Less:Financialcharges 267.89 235.31Less:Depreciationandamortizationexpenses 279.79 246.85Profit before exceptional and prior period items and tax 542.94 334.04Less:Exceptionalitems 0.00 0.00Less:Priorperioditems 0.00 0.00Profit before tax 542.94 334.04Less:CurrentTax 143.60 112.70Less:DeferredTaxLiability (10.12) 2.11Less:Provisionfortaxofearlieryears 0.15 0.02Profit after taxation 409.31 219.21Earnings Per Equity Share (in ₹) 5.42 2.90

PERFORMANCE REVIEW:During the financial yearendedMarch31, 2018, yourCompany recordeda total revenueof₹ 38391.62 Lakhsascomparedto₹36604.10LakhsduringthepreviousfinancialyearendedMarch31,2017.TheProfitbeforeexceptionalandpriorperioditemsandtaxofyourCompanyforthefinancialyearendedMarch31,2018stoodat₹542.94LakhsasagainstthepreviousfinancialyearendedMarch31,2017was₹334.04Lakhs.Accordingly,Netprofitaftertaxstoodat₹409.31asagainstthepreviousfinancialyearendedMarch31,2017was₹219.21Lakhswhichreflectsagrowthof86.72%overthecorrespondingProfitforthefinancialyearendedMarch31,2017.

DIVIDEND: TheBoardrecommendspaymentofdividendof₹0.50/-(FiftyPaisa)pershareon7550000Equitysharesoffacevalueof₹10/-eachfortheyearendedMarch31,2018.

TRANSFER TO RESERVES:TheCompanyhasnottransferredanyamounttotheGeneralReserveduringthefinancialyearendedMarch31,2018.

SHARE CAPITAL STRUCTURE OF THE COMPANY:ThepaidupcapitalofthecompanyasonMarch31,2018was₹7,55,00,000/-dividedinto75,50,000Equitysharesof₹10/-Each.TherewasnochangeintheEquitysharescapitalofthecompanyduringthefinancialyearendedMarch31,2018.

MATERIAL CHANGES AND COMMITMENT AFFECTING THE FINANCIAL POSITION OF THE COMPANY:SubsequenttotheendofthefinancialyearonMarch31,2018tilldate,therehasbeennomaterialchangeand/orcommitmentwhichmayaffectthefinancialpositionoftheCompany.

DIRECTORS AND SENIOR MANAGERIAL PERSONNEL:TheBoardofDirectorsisdulyconstitutedwith7(Seven)Directorswith3(Three)ofthembeingIndependentDirectors.

DIRECTORS’ REPORT


Changes in of Directors:-ShriNatubhaiPatel(DIN:00027540)hasresignedasaDirectoroftheCompanywitheffectfromApril1,2018onaccountofpre-occupancy.TheBoardplacesonrecorditssincereappreciationforthevaluablecontributionsmadebyhimduringhistenureasaDirectorontheBoardoftheCompany.

ShriChinubhaiShah(DIN:005538310)ceasedtobedirectorasonJune6,2018duetountimelysaddemise.HewasontheBoardofDirectorsofthecompanysince2004andhasservedtheBoardforaperiodofmorethan14years.

TheBoardplacesonrecordtheinvaluablecontributionsofLateShriChinubhaiR.Shah,thebelovedDirectoroftheGSECLimited.HisexemplaryvisionandperseverancehelpedtheCompany tobecomeoneof themostadmiredorganisations.HehasbeenveryinstrumentalinbringingtheCompanytothepresentlevel.Wepraythathissoulrestinpeace.

ShriSamirMankad,WholeTimeDirectorhasbeendesignatedasChiefExecutiveOfficerw.e.f.1stApril,2017.

Directors retire by rotation:-InaccordancewithSection152oftheCompaniesAct,2013,ShriSamirMankad(DIN:00421878)retiresbyrotationattheensuingAnnualGeneralMeetingandbeingeligible,offershimselfforre-appointment.

Appointment of Directors:-ShriMaheswarSahu(DIN:00034051),hasbeenappointedasanAdditionalDirectorbytheBoardwitheffectfromApril27,2018,inthecategoryofIndependentDirectorforthetermoffiveyears,subjecttoapprovaloftheMembersattheensuingAnnualGeneralMeeting.TheCompanyhasreceivednoticefromashareholderintermsofSection160oftheCompaniesAct,2013proposingtheappointmentofShriSahuasDirectoroftheCompanyattheensuingAnnualGeneralMeeting.

Smt.RajiShah(DIN:06893581)wasappointedasanAdditionalDirectorandsubsequentlyaswholeTimeDirectoroftheCompanyforaperiodof3yearscommencingfromApril1,2018uptoMarch31,2021,subjecttoapprovaloftheMembersattheensuingAnnualGeneralMeeting.TheCompanyhasreceivedanoticefromashareholderintermsofSection160oftheCompaniesAct,2013proposingtheappointmentofSmt.RajiShahasDirectoroftheCompanyattheensuingAnnualGeneralMeeting.

TheBoardofDirectorsrecommendspassingnecessaryresolutions.

Apartfromabove,therehavebeennochangesinDirectors.

Statement of Declaration given by the Independent Directors under Section 149(7):-TheIndependentDirectorshavesubmittedthedeclarationofindependence,asrequiredpursuanttoSection149(7)oftheCompaniesAct,2013,statingthattheymeetthecriteriaofIndependenceasprovidedinsection149(6).TheIndependentDirectorshaveconfirmedanddeclaredthattheyarenotdis-qualifiedtoactasanIndependentDirectoras specifiedunderSection149of theCompaniesAct,2013and theBoard isalsoof theopinion that theIndependentDirectorsfulfilsalltheconditionsspecifiedintheCompaniesAct,2013makingthemeligibletoactasIndependentDirectors.

REMUNERATION POLICY:TheremunerationpolicyoftheCompanyisannexedtothereportasAnnexure - G.

DEPOSITS:TheCompanyhasnotacceptedanydepositwithinthemeaningofSection73oftheCompaniesAct,2013duringtheperiodunderreview.

SUBSIDIARY COMPANIES:AstatementinFormAOC-1pursuanttofirstprovisotosub-section(3)ofsection129ofCompaniesAct,2013readwithRule5oftheCompanies(Accounts)Rules,2014inrespectofsubsidiarycompaniesisannexedherewithasAnnexure - A.

During theyearunder review,GSEC Logistics Limited, thewhollyowned subsidiaryCompanyhasnotearnedanyrevenuefromoperationsbutduetosomefixedcostpostedNetlossof₹1.01Lakhs.


Duringtheyearunderreview,GSECGreenEnergyPrivateLimited,thewhollyownedsubsidiaryCompanyhasearnedRevenuefromoperationsof₹25.14Lakhs(Previousyear₹0.41Lakhs)andhaspostedNetprofitof₹9.18Lakhs(PreviousyearNetLoss₹29.33Lakhs).

MEETINGS OF THE BOARD OF DIRECTORS AND COMMITTEE MEETING:ThedetailsofthenumberofmeetingsoftheBoardheldduringtheFinancialYear2017-18formspartoftheCorporateGovernanceReport.

COMMITTEES OF THE BOARD:TheBoardofDirectorshasthefollowingCommittees:-

1.AuditCommittee2.NominationandRemunerationCommittee3.ShareTransferandGrievancesCommittee

ThedetailsoftheCommitteesalongwiththeircomposition,numberofmeetingsandattendanceatthemeetingsareprovidedintheCorporateGovernanceReport.

EXTRACT OF ANNUAL RETURN:TheextractofAnnualReturnasperSection92(3)ofCompaniesAct,2013isannexedunderAnnexure-BtothisReport.

CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES:PursuanttoSection134oftheCompaniesAct,2013readwithRule8(2)oftheCompanies(Accounts)Rules,2014,allrelatedpartytransactionsareenteredonanarm’slengthbasisandintheordinarycourseofbusiness.Therearenomaterially significant relatedparty transactionsmadeby theCompanywith Promoters,Directors, KeyManagerialPersonnelorotherdesignatedpersonswhichmayhaveapotentialconflictwiththeinterestoftheCompanyatlarge.DetailsoftheconcernedtransactionsareprovidedinFormAOC–2underAnnexure-C.

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186 OF THE COMPANIES ACT, 2013:ThedetailsoftheLoansandGuaranteesgivenduringtheyearunderreviewfallingunderSection186oftheCompaniesAct,2013isgiveninAnnexure-D,whichformspartofthisreport.ThedetailsofInvestmentsareasmentionedinthenotesoffinancialstatements.Duringtheyearunderreview,thecompanyhasnotprovidedanysecurityfallingwithininpurviewofSection186.

PARTICULARS OF EMPLOYEES:NoemployeewasdrawingsalaryinexcessofthelimitsprescribedbyCentralGovernmentpursuanttoSection197readwithRule5ofTheCompanies(AppointmentandRemunerationofManagerialPersonnel)Rules,2014,asamended,fromtimetotime.

IntermsofprovisionsofSection136(1)oftheAct,theAnnualReportexcludingthedisclosurespertainingtoremunerationandotherdetailsasrequiredunderSection197(12)oftheActreadwithRule5(1)oftheCompanies(AppointmentandRemunerationofManagerialPersonnel)Rules,2014isbeingsenttothemembersoftheCompany.Thesaidinformationisopenfor inspectionattheregisteredofficeoftheCompanyduringworkinghoursandanymemberinterestedinobtainingsuchinformationmaywritetotheCompanySecretaryandthesamewillbefurnishedonrequest.

AUDITORS:Statutory Auditors:-InaccordancewiththeprovisionsofSection139andotherapplicableprovisions,ifany,oftheCompaniesAct,2013andtherulesmadethereunder,M/s.BJS&Associates&Co.,CharteredAccountants(RegistrationNo.113268W)wereappointedasStatutoryAuditors,foratermoffiveyearstoholdofficetilltheconclusionoftheAnnualGeneralMeetingtobeheldforthefinancialyearendingon2019,subjecttotheratificationbythemembersateveryAnnualGeneralMeeting.

TherequirementoftakingapprovalofmembersforratificationofappointmentofStatutoryAuditorshasbeendoneawaywithbytheCompanies(Amendment)Act,2017witheffectfromMay30,2018.HoweverastheappointmentofstatutoryauditorshasbeenmadeintheAnnualGeneralMeetingheldintheyear2014subjecttoratificationbymembersateveryAnnualGeneralMeeting,aResolutionseekingmembers’approvalforratificationfortheirappointmentfromtheconclusionofthisAnnualGeneralMeetingtilltheconclusionofthenextAnnualGeneralMeetingofthecompanyisproposedforapproval.


Secretarial Audit:-Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment andRemunerationofManagerialPersonnel)Rules,2014,theCompanyhasappointedM/s.UmeshParikhandAssociates,CompanySecretaries toundertaketheSecretarialAuditof theCompany.TheSecretarialAuditReport isannexedherewithasAnnexure-E.Internal Audit:-Pursuant to Section138of theAct readwith theCompanies (Accounts) Rules, 2014,M/s.DharmeshParikh&Co,CharteredAccountant,wasappointedastheInternalAuditorofyourCompanyforthefinancialyear2017-18.FurthertheBoardofdirectorof thecompany re-appointedasM/s.DharmeshParikh&Coas the InternalAuditorofyourCompanyforthefinancialyear2018-19.

EXPLANATION OR COMMENTS ON AUDITORS’ REPORT AND/OR SECRETARIAL AUDIT REPORT:Therearenoqualifications,reservationsoradverseremarksordisclaimermadebytheStatutoryandSecretarialAuditorsintheirAuditReportswhichrequiresclarificationfromtheManagementoftheCompany.

SECRETARIAL STANDARDS:TheBoardtothebestoftheirknowledgeconfirmsthattheCompanyhascompliedwiththeapplicableSecretarialStandardsasissuedbytheInstituteofCompanySecretariesofIndiaandmadeapplicablebyMinistryofCorporateAffairs.

INTERNAL FINANCIAL CONTROL SYSTEM:TheBoardhaslaiddowntheInternalControlSystemwithadequateinternalfinancialcontrols,commensuratewiththesize,scaleandcomplexityofoperationswhichoperateseffectively.ThescopeandauthorityoftheInternalAudit(IA)functioniswelldefined.

RISK MANAGEMENT POLICY:TheManagementregularlyreviewstheriskandtakeappropriatestepstomitigatetherisk.Thecompanyhasinplacethe RiskManagement policy. TheCompany has a setup Business RiskManagement (BRM) framework to identify,evaluatebusinessrisksandopportunities.Thisframeworkseekstocreatetransparency,minimizeadverseimpactonthebusinessobjectivesandenhancetheCompany’scompetitiveadvantage.

IntheopinionoftheBoard,therehasbeennoidentificationofanyelementofriskwhichmaythreatentheexistenceorgoingconcernoftheCompany.

DISCLOSURES UNDER SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013:TheCompanyhas inplaceanAnti-SexualHarassmentPolicy in linewith the requirementof SexualHarassmentofWomenatWorkplace(Prevention,ProhibitionandRedressal)Act,2013.InternalComplaintsCommitteehasbeenset-uptoredresscomplaintsreceivedregardingsexualharassment.TheCompanyhasnotreceivedanysexualharassmentcomplaintduringtheyear2017-18.

SIGNIFICANT AND MATERIAL ORDERS:Thereisnosignificantand/ormaterialorderpassedbyanyRegulator(s)orCourt(s)orTribunal(s)duringtheyearwhichwouldimpactthegoingconcernstatusoftheCompanyanditsoperations.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNING AND OUTGO:The informationonconservationof energy, technologyabsorptionand foreignexchangeearningsandoutgoasstipulatedunderSection134(3)(m)oftheCompaniesAct,2013isgivenintheAnnexure-F.

DIRECTORS’ RESPONSIBILITY STATEMENT:PursuanttoSection134(5)oftheCompaniesAct,2013theBoardofDirectorsoftheCompanystatesthat:-

a. In thepreparationofannualaccounts, theapplicableaccounting standardshavebeen followedalongwithproperexplanationrelatingtomaterialdepartures;

b. TheyhaveselectedsuchaccountingpoliciesandappliedthemconsistentlyandmadejudgmentsandestimatesthatarereasonableandprudentsoastogiveatrueandfairviewofthestateofaffairsofthecompanyattheendofthefinancialyearandoftheProfitoftheCompanyforthatperiod;

c. Theyhavetakenproperandsufficientcareforthemaintenanceofadequateaccountingrecordsinaccordance


withtheprovisionsofthisActforsafeguardingtheassetsofthecompanyandforpreventinganddetectingfraudandotherirregularities;

d. Theyhavepreparedtheannualaccountsongoingconcernbasis;e. Theyhavedevisedpropersystemstoensurecompliancewiththeprovisionsofallapplicablelawsandthatsuch

systemswereadequateandoperatingeffectively;ACKNOWLEDGEMENTS:YourDirectorsarethankfultotheBankers,variousGovernmentagencies,suppliers,customers,Investorsandallothersstakeholdersfortheirwholeheartedsupportduringtheyearandlookforwardtotheircontinuedsupportintheyearsahead.YourDirectorsfurtherappreciateandacknowledgethecontributionsmadebytheemployeesatall levelsandotherbusinessassociatesfortheircommitmentanddedicationtowardstheoperationsoftheCompany.

For and on behalf of the Board of Directors,Place: AhmedabadDate: 28th August 2018

RAKESH SHAHChairman & Managing Director

DIN: 00421920


ANNEXURE – AForm AOC-I

(Pursuanttofirstprovisotosub-section(3)ofsection129readwithrule5ofCompanies(Accounts)Rules,2014)Statement containing salient features of the financial statement of subsidiaries/associate companies/joint ventures

Part “A”: Subsidiaries(Informationinrespectofeachsubsidiarytobepresentedwithamountsin₹)

1 Sl.No. 1 22 Nameofthesubsidiary GSECLogisticsLimited GSECGreenEnergyPrivateLimited

3 ThedatesincewhensubsidiarywasAcquired 07.09.2006 02.01.2012

3 Reporting period for the subsidiaryconcerned, if different from the holdingcompany’sreportingperiod

01.04.2017to31.03.2018 01.04.2017to31.03.2018

4 ReportingcurrencyandExchangerateasonthelastdateoftherelevantFinancialyearinthecaseofforeignsubsidiaries.

INR INR

5 Sharecapital 5,00,000 1,00,0006 Reserves&surplus 19,45,628 (1,21,29,717)7 Totalassets 3,99,84,242 2,77,34,5118 TotalLiabilities 3,75,38,714 3,82,64,2289 Investments NIL 15,00010 Turnover NIL NIL11 Profitbeforetaxation (9,805) 13,29,23212 Provisionfortaxation 92,058 Nil13 Profitaftertaxation (1,01,863) 9,18,50014 ProposedDivided NIL NIL15 %ofShareholding 100% 100%

Notes: 1 Namesofsubsidiarieswhichareyettocommenceoperations:Not Applicable.2 Namesofsubsidiarieswhichhavebeenliquidatedorsoldduringtheyear:Not Applicable.

Part “B”: Associates and Joint Ventures: Nil

As per our Report AnnexedFor BJS & AssociatesChartered AccountantsFirm Registration No. 113268W

For and on behalf of Board of Directors

CA BIPIN J SHAH RAKESH SHAH SAMIR MANKAD CHINTAN PATELPartner Chairman&ManagingDirector CEO&WholeTimeDirector CompanySecretaryMembership No. 10712 DIN : 00421920 DIN : 00421878 M. No. A29326

Place: Ahmedabad Place: Ahmedabad Date: 28th August 2018 Date: 28th August 2018


ANNEXURE - BForm No. MGT – 9

EXTRACT OF ANNUAL RETURNAs on the financial year ended on 31st March, 2018

[Pursuanttosection92(3)oftheCompaniesAct,2013andrule12(1)oftheCompanies(ManagementandAdministration)Rules,2014]

I REGISTRATION AND OTHER DETAILS:i) CIN U52100GJ1965PLC001347ii) RegistrationDate October14,1965iii) NameoftheCompany GSECLimitediv) Category/Sub-CategoryoftheCompany CompanyLimitedbyShares/IndianNon-government

Companyv) Addressoftheregisteredofficeandcontact

detailsGujaratChambersBuilding,AshramRoad,Ahmedabad–380009.Phone:079-26554100Fax:079-26584040EMail:[email protected]

vi) Whetherlistedcompany Novii) Name,AddressandContactdetailsof

RegistrarandTransferAgent,ifanyM/s.BigshareServicesPrivateLimitedA/802,SamudraComplex,NearKlassicGoldHotel,GrishColdDrinkCrossRoad,OffCGRoad,Ahmedabad-380009.Phone:079-40024135EMail:[email protected]

II PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY:Allthebusinessactivitiescontributing10%ormoreofthetotalturnoverofthecompanyshallbestated:-

Sl. No. Name and Description of main Products/ Services

NIC Code of the Product/ service

% total turnover of the company

1 OtherwholesaleTradingBusiness 51909 89.922 AirCargoBusiness 99671 10.08

III PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES:Sl.

No.Name and Address of the

companyCIN/GLN Holding/

Subsidiary/Associate

% of shares held

Applicable Section

01 Komal Infotech Private Limited40, Asia House, Nr. Swastik CharRasta,Navrangpura,Ahmedabad-380009

U72200GJ2000PTC037463 HoldingCompany 63.36 Sec.2(46)

02 GSEC Logistics Limited2nd Floor, Gujarat Chamber’sBuilding,AshramRoad,Ahmedabad–380009

U62200GJ2006PLC049049 SubsidiaryCompany 100 Sec.2(87)

03 GSEC Green Energy Private Limited1st Floor, Udhyog Bhavan, Opp.Kunal Restaurant, Ashram Road,Ahmedabad–380009

U37200GJ2011PTC066904 SubsidiaryCompany 100 Sec.2(87)


IV SHAREHOLDING PATTERN (EQUITY SHARE CAPITAL BREAK UP AS PERCENTAGE OF TOTAL EQUITY):

(i) Category-Wise Share Holding:-Sl. No.

Category of Shareholder(s)

Number of shares held at the beginning of the year

Number of shares held at the end of the year

% Change During

the YearDemat Physical Total % of Total

shares

Demat Physical Total % of Total

Shares

(A) Shareholding of Promoter and Promoter Group

(1) Indian(a) Individuals/HUF - 2572140 2572140 34.07 2571030 1110 2572140 34.07 -(b) Cent.Gov./State

Gov.(s)- - - - - - - - -

(c) BodiesCorporate - 4783910 4783910 63.36 - 4783910 4783910 63.36 -(d) FI/Banks - - - - - - - - -(e) Others - - - - - - - - -

SUB TOTAL (A)(1) - 7356050 7356050 97.43 2571030 4785020 7356050 97.43 -(2) Foreign

(a) Individuals/HUF - - - - - - - - -(b) Cent.Gov./State

Gov.(s)- - - - - - - - -

(c) BodiesCorporate - - - - - - - - -(d) FI/Banks - - - - - - - - -(e) Others - - - - - - - - -

SUB TOTAL (A)(2) - - - - - - - - -

TOTAL Shareholding of Promoter and Promoter Group(A) = (1) + (2)

- 7356050 7356050 97.43 2571030 4785020 7356050 97.43 -

(B) Public Shareholding

(1) Institutions(a) MutualFunds/UTI - - - - - - - -(b) FI/Banks - - - - - - - - -(c) Cent.Gov./State

Gov.(s)- - - - - - - - -

(d) VentureCapitalFunds

- - - - - - - - -

(e) InsuranceCompanies

- - - - - - - - -

(f) FII - - - - - - - - -(g) ForeignVenture

CapitalInvestors- - - - - - - - -

(h) Others - - - - - - - - -SUB TOTAL (B)(1) - - - - - - - - -

(2) Non - Institutions(a) BodiesCorporate - 29010 29010 0.38 0 25650 25650 0.34 0.04(b) Individuals


i)IndividualShareholdersholding nominal sharecapitalupto₹1Lakh

17550 96990 114540 1.52 21360 83010 104370 1.38 0.14

ii)IndividualShareholdersholding nominal sharecapital in excess of ₹ 1Lakh

12000 38400 50400 0.67 12000 38400 50400 0.67 -

(c) Others-INVESTOREDUCATIONANDPROTECTIONFUNDAUTHORITYMINISTRYOFCORPORATEAFFAIRS

- - - - 13530 - 13530 0.18 (0.18)

SUB TOTAL (B)(2) 29550 164400 193950 2.57 46890 147060 193950 2.57 -

TOTAL Public Shareholding (B) = (1) + (2)

29550 164400 193950 2.57 46890 147060 193950 2.57 -

TOTAL (A)+(B) 29550 7520450 7550000 100.00 2617920 4932080 7550000 100.00 -(C) Shares held by

Custodians and against which Depository Receipts have been issued

- - - - - - - - -

GRAND TOTAL (A) + (B) + (C)

29550 7520450 7550000 100.00 2617920 4932080 7550000 100.00 -


(ii) SHAREHOLDING OF PROMOTERS:-Sl.

No.Shareholder’s Name

Shareholding at the beginning of the year

Shareholding at the end of the year % change during the

yearNo. of Shares

% of Total shares of the

Company

% of Shares Pledged / encumbe red to total

shares

No. of Shares

% of

Total shares of the

Company

%of Shares Pledged / encumbe red to total

shares1 KOMALINFOTECH

PVTLTD4783910 63.36 - 4783910 63.36 - -

2 PRITIRSHAH 1447670 19.17 - 1447670 19.17 - -3 RAKESHRSHAH 636090 8.43 - 636090 8.43 - -4 SHAISHAVRSHAH 487270 6.45 - 487270 6.45 - -5 KOMALRAKESH

SHAH1110 0.02 - 1110 0.02 - -

TOTAL 7356050 97.43 - 7356050 97.43 - -

(iii) CHANGE IN PROMOTERS’ SHAREHOLDING:- TherewerenochangeintheholdingofanyPromotersduringtheyearunderreview.(iv) SHAREHOLDING PATTERN OF TOP TEN SHAREHOLDERS (OTHER THAN DIRECTORS, PROMOTERS AND HOLDERS OF GDRS AND ADRS):-

Sl. No.

Shareholding at the beginning of the year

Cumulative Shareholding during the year

For Each of the Top 10 Shareholders No. of shares

% of total shares of the

company

No. of shares % of total shares of the

company

1 VASANT B. SHAHAtthebeginningoftheyear 38400 0.51 38400 0.51Date-wiseIncrease/DecreaseinShareholdingduring the year specifying the reasons forincrease/ decrease(e.g. allotment/ transfer/bonus/sweatequityetc):

NOCHANGEDURINGTHEYEAR

At the End of the year(or on the date ofseparation,ifseparatedduringtheyear)

-- -- 38400 0.51

2 ALEMBIC LIMITEDAtthebeginningoftheyear 12210 0.16 12210 0.16Date-wiseIncrease/DecreaseinShareholdingduring the year specifying the reasons forincrease/decrease(e.g. allotment/ transfer/bonus/sweatequityetc):


AttheEndoftheyear(oronthedateofsepa-ration,ifseparatedduringtheyear)

-- -- 12210 0.16

3 MANOJKUMAR RAMANLAL GANDHIAtthebeginningoftheyear 12000 0.16 12000 0.16Date-wiseIncrease/DecreaseinShareholdingduring the year specifying the reasons forincrease/decrease(e.g. allotment/ transfer/bonus/sweatequityetc):



-- -- 12000 0.16


4 VASUNDHARA CANNING PVT. LTDAtthebeginningoftheyear 4500 0.06 4500 0.06Date-wiseIncrease/DecreaseinShareholdingduring the year specifying the reasons forincrease/decrease(e.g. allotment/ transfer/bonus/sweatequityetc):



-- -- 4500 0.06

5 ALPA SHRIRAM PUROHITAtthebeginningoftheyear 4080 0.05 4080 0.05Date-wiseIncrease/DecreaseinShareholdingduring the year specifying the reasons forincrease/decrease(e.g. allotment/ transfer/bonus/sweatequityetc):

IncreaseduetoTransferof3720Shares

AttheEndoftheyear(oronthedateofseparation,ifseparatedduringtheyear)

-- -- 7800 0.10

6 SHARDADEVI KANTILAL GURUAtthebeginningoftheyear 3240 0.04 3240 0.04

Date-wiseIncrease/DecreaseinShareholdingduring the year specifying the reasons forincrease/decrease(e.g. allotment/ transfer/bonus/sweatequityetc):



-- -- 3240 0.04

7 JAYESH KANTILAL GURUAtthebeginningoftheyear 3210 0.04 3210 0.04




-- -- 3210 0.04

8 TARUN UNAAGARAtthebeginningoftheyear 3150 0.04 3150 0.04




-- -- 3150 0.04

9 SHANTILAL M JARIWALAAtthebeginningoftheyear 3000 0.04 3000 0.04Date-wiseIncrease/DecreaseinShareholdingduring the year specifying the reasons forincrease/decrease(e.g. allotment/ transfer/bonus/sweatequityetc):



-- -- 3000 0.04


10 LALCHAND T MEHTAAtthebeginningoftheyear 2700 0.03 2700 0.03Date-wiseIncrease/DecreaseinShareholdingduring the year specifying the reasons forincrease/decrease(e.g. allotment/ transfer/bonus/sweatequityetc):



-- -- 2700 0.03

(v) SHAREHOLDING OF DIRECTORS AND KEY MANAGERIAL PERSONNEL:-Sl. No.

For Each of the Directors and KMP Shareholding at the beginning of the year

Cumulative Shareholding during the year

No. of shares

% of total shares of the

company

No. of shares

%of total shares of the company

1 RAKESH RAMANLAL SHAH CHAIRMAN & MANAGING DIRECTORAtthebeginningoftheyearequityetc. 636090 8.42 636090 8.42DatewiseIncrease/DecreaseinPromotersShareholding during the year specifyingthe reasons for increase /decrease (e.g.allotment/transfer/bonus/sweat)


Attheendoftheyear 636090 8.42 636090 8.422 SAMIR HANSKUMAR MANKAD CEO & WHOLE-TIME DIRECTOR

Atthebeginningoftheyearequityetc. NIL NIL NIL NILDatewiseIncrease/DecreaseinPromotersShareholding during the year specifyingthe reasons for increase/decrease (e.g.allotment/transfer/bonus/sweat)


Attheendoftheyear NIL NIL NIL NIL3 SHAISHAV RAKESHKUMAR SHAH WHOLE-TIME DIRECTOR

Atthebeginningoftheyearequityetc. 487270 6.45 487270 6.45DatewiseIncrease/DecreaseinPromotersShareholding during the year specifyingthe reasons for increase/decrease (e.g.allotment/transfer/bonus/sweat)


Attheendoftheyear 487270 6.45 487270 6.454 RAJI SHAISHAV SHAH

(Resigned w.e.f 28.09.2017) (Appointed as on 30.03.2018)

WHOLE-TIME DIRECTOR



Attheendoftheyear NIL NIL NIL NIL5 CHINUBHAI RAMANLAL SHAH

(Ceased on 06.06.2018) DIRECTOR (INDEPENDENT)



Attheendoftheyear NIL NIL NIL NIL


6 BHALABHAI CHHOTABHAI PATEL DIRECTOR (INDEPENDENT)Atthebeginningoftheyearequityetc. NIL NIL NIL NILDatewiseIncrease/DecreaseinPromotersShareholding during the year specifyingthe reasons for increase/decrease (e.g.allotment/transfer/bonus/sweat)


Attheendoftheyear NIL NIL NIL NIL7 NATWARLAL MEGHJIBHAI PATEL

(Resigned w.e.f. 01.04.2018) DIRECTOR (INDEPENDENT)



Attheendoftheyear NIL NIL NIL NIL8 SANDIP ASHWINBHAI PARIKH DIRECTOR (INDEPENDENT)



Attheendoftheyear NIL NIL NIL NIL9 CHINTANKUMAR PATEL WHOLE-TIME COMPANY SECRETARY



Attheendoftheyear NIL NIL NIL NIL

(V) INDEBTEDNESS:INDEBTEDNESS OF THE COMPANY INCLUDING INTEREST OUTSTANDING/ACCRUED BUT NOT DUE FOR PAYMENT:-

(Amount in ₹)Particulars Secured Loans

excluding depositsUnsecured

LoansDeposits Total Indebtedness

Indebtedness at the beginning of the financial yeari)PrincipalAmount 55754462 110147396 -- 165901858ii)Interestduebutnotpaid -- -- -- --iii)Interestaccruedbutnotdue -- -- -- --Total (i+ii+iii) 55754462 110147396 -- 165901858Change in Indebtedness during the financial yearAddition 67672893 -- -- 67672893Reduction -- 97088245 -- 97088245Net Change 67672893 97088245 -- 29415352Indebtedness at the end of the financial yeari)PrincipalAmount 123427355 13059150 -- 136486505ii)Interestduebutnotpaid -- -- -- --iii)Interestaccruedbutnotdue -- -- -- --Total (i+ii+iii) 123427355 13059150 -- 136486505


(VI) REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL:

(A) Remuneration to Managing Director, Whole-time Directors and/or Manager:- (Amount in ₹)Name of MD/WTD/ Manager Total

AmountSl. No.

Particulars of Remuneration

RAKESH SHAH SAMIR MANKAD SHAISHAV SHAH RAJI SHAHCMD WTD WTD WTD

1 GrossSalary(a) Salaryasper

provisionscontainedinsection17(1)oftheIncome-taxAct,1961

36,00,000/- 29,76,000/- 22,85,016/- 8,54,340/- 97,15,356/-

(b) Valueofperquisitesu/s17(2)Income-taxAct,1961

- - - - -

(c) Profitsinlieuofsalaryundersection17(3)Income-taxAct,1961

- - - - -

2 StockOption - - - - -3 SweatEquity - - - - -4 Commission

-as%Profit-Other,specify….

- - - - -

5 Others,pleasespecify - - - - -

Total (A) 36,00,000/- 29,76,000/- 22,85,016/- 8,54,340/- 97,15,356/-

CeilingaspertheAct WithinthelimitsspecifiedunderScheduleVoftheCompaniesAct,2013.

(B) Remuneration to other Directors:-(Amount in ₹)

Sl. No. Particulars of Remuneration Name of Directors Total Amount(1) Independent Directors CHINUBHAI

SHAHBHALABHAI

PATELNATWARLAL

PATELSANDIP PARIKH

-Feeforattendingboard/committeemeetings

60,000/- 45,000/- 15,000/- 45,000/- 1,65,000/-

-Commission - - - --Others,pleasespecify - - - -Total (1) 60,000/- 45,000/- 15,000/- 45,000/- 1,65,000/-

(2) Other Non-Executive Directors

-Feeforattendingboard/committeemeetings

- - - - -

-Commission - - - - --Others,pleasespecify - - - - -Total (2) - - - - -Total (B) = (1)+(2) 60,000/- 45,000/- 15,000/- 45,000/- 1,65,000/-

TotalManagerialRemuneration 97,15,356/-

CeilingaspertheAct Within the limits specified under Schedule V of the Companies Act,2013.


(C) Remuneration to Key Managerial Personnel other than MD/Manager/WTD:-(Amount in ₹)

Sl. No. Particulars of Remuneration Key Managerial Personnel Total AmountCEO Company

SecretaryCFO

1 GrossSalary(a) Salaryasperprovisionscontainedin

section17(1)oftheIncome-taxAct,1961- 4,27,308/- - 4,27,308/-

(b) Valueofperquisitesu/s17(2)Income-taxAct,1961

- - - -

(c) Profitsinlieuofsalaryundersection17(3)Income-taxAct,1961

- - - -

2 StockOption - - - -3 SweatEquity - - - -4 Commission

-as%Profit - - - --Other,specify…. - - - -

5 Others,pleasespecify - - - -Total (A) - 4,27,308/- - 4,27,308/-

VII PENALTIES/PUNISHMENT/COMPOUNDING OF OFFENCES:Type Section of the

Companies ActBrief

DescriptionDetails of Penalty/

Punishment/ Compounding fees

imposed

Authority [RD/NCLT /COURT]

Appeal made, if any (give details)

A.COMPANYPenalty NILPunishmentCompounding

B.DIRECTORSPenalty NILPunishmentCompoundingC. OTHER OFFICERS IN DEFAULTPenalty NILPunishmentCompounding



DIN: 00421920


ANNEXURE - C

Form AOC – 2(Pursuanttoclause(h)ofsub-section(3)ofsection134oftheActandRule8(2)oftheCompanies(Accounts)Rules,

2014)Form for disclosure of particulars of contracts/arrangements entered into by the company with related parties referred to in sub-section (1) of section 188 of the Act including certain arm’s length transactions under third proviso thereto.

1 Details of material contracts or arrangements or transactions not at arm’s length basis: Noneofthetransactionswithrelatedpartiesfallinthiscategory.

2 Details of material contracts or arrangement or transactions at arm’s length basis: (₹ in Lakhs)Name(s) of the related

party and nature of relationship

Nature of contracts /

arrangements / transactions

Duration of the contracts /

arrangements / transactions

Salient terms of the contracts or arrangements or

transactions including the value, if any

Date(s) of approval by the Board, if

any.

Amount paid as advances,

if any.

PritiR.Shah(RelativeofDirectors)

Lease/RentAgreement

AsperAgreement

₹21.24 AsperNoteBelow

AsperNoteBelow

ShaishavR.Shah(Whole-timeDirector)

Lease/RentAgreement

AsperAgreement

₹3.10 AsperNoteBelow

AsperNoteBelow

Note: Above mentioned transaction are done at arm’s length price and at prevailing market rate. Appropriateapprovalswheneverrequiredhavebeentakenforrelatedpartytransactions.Noamountwaspaidasadvance.



DIN: 00421920


ANNEXURE - DParticulars of Loans and Guarantees

Amountoutstandingasat31stMarch,2018 (₹ in Lakhs)

Particulars AmountLoansgiven 518.67Guaranteegiven Nil

LoanandGuaranteemadeduringtheFinancialYear2017-18 (₹ in Lakhs)

Name of Entity Relation Amount Particulars PurposeGSECGreenEnergyPrivateLimited WOS 144.29 Loan BusinessGSECLogisticsLimited WOS 374.38 Loan Business



DIN: 00421920


Annexure-EForm No. MR-3

SECRETARIAL AUDIT REPORTFORTHEFINANCIALYEARENDEDMarch31,2018

[Pursuanttosection204(1)oftheCompaniesAct,2013andruleNo.9oftheCompanies(AppointmentandRemunerationofManagerialPersonnel)Rules,2014]

To,TheMembers,GSEC LIMITEDCIN- U52100GJ1965PLC001347GujaratChambersBuilding,AshramRoad,Ahmedabad–380009

WehaveconductedthesecretarialauditofthecomplianceofapplicablestatutoryprovisionsandtheadherencetogoodcorporatepracticesbyGSEC Limited (hereinaftercalledthecompany).SecretarialAuditwasconductedinamannerthatprovidedusareasonablebasisforevaluatingthecorporateconducts/statutorycompliancesandexpressingouropinionthereon.

BasedonourverificationoftheCompany’sbooks,papers,minutebooks,formsandreturnsfiledandotherrecordsmaintainedbythecompanyandalsotheinformationprovidedbytheCompany,itsofficers,agentsandauthorizedrepresentativesduring theconductof secretarial audit,we hereby report that inouropinion, thecompanyhas,duringtheauditperiodcoveringthefinancialyearendedonMarch31,2018compliedwiththestatutoryprovisionslistedhereunderandalsothattheCompanyhasproperBoard-processesandcompliance-mechanisminplacetotheextent,inthemannerandsubjecttothereportingmadehereinafter:

Wehaveexaminedthebooks,papers,minutebooks, formsandreturnsfiledandotherrecordsmaintainedbytheCompanyforthefinancialyearendedonMarch31,2018accordingtotheprovisionsof:

1. TheCompaniesAct,2013(theAct)andtheRulesmadethereunder;2. TheSecuritiesContracts(Regulation)Act,1956(‘SCRA’)andtheRulesmadethereunder;3. TheDepositoriesAct,1996andtheRegulationsandBye-lawsframedthereunder;4. ForeignExchangeManagementAct,1999andtheRulesandRegulationsmadethereundertotheextentofForeignDirectInvestment,OverseasDirectInvestmentandExternalCommercialBorrowings-NotApplicable;5. ThefollowingRegulationsandGuidelinesprescribedundertheSecuritiesandExchangeBoardofIndiaAct,1992(‘SEBIAct’):(NotApplicableasthesharesoftheCompanyarenotlistedonanyStockExchange)

a. TheSecuritiesandExchangeBoardofIndia(SubstantialAcquisitionofSharesandTakeovers)Regulations,2011;b. TheSecuritiesandExchangeBoardofIndia(ProhibitionofInsiderTrading)Regulations2015;c. TheSecuritiesandExchangeBoardofIndia(IssueofCapitalandDisclosureRequirements)Regulations,2009;d. TheSecuritiesandExchangeBoardofIndia(ShareBasedEmployeesBenefits)Regulations,2014;e. The Securities and Exchange Board of India (Issue and Listing of Debt Securities)Regulations,2008;f. TheSecuritiesandExchangeBoardofIndia(RegistrarstoanIssueandShareTransferAgents)Regulations,1993regardingtheCompaniesActanddealingwithclient;g. TheSecuritiesandExchangeBoardofIndia(DelistingofEquityShares)Regulations,2009;h. TheSecuritiesandExchangeBoardofIndia(BuyBackofSecurities)Regulations,1998;

WehavealsoexaminedcompliancewiththeapplicableStandards/Clauses/Regulationsofthefollowing:

i. SecretarialStandardsissuedbyTheInstituteoftheCompanySecretariesofIndia(ICSI)andmadeeffectivefromtimetotime.

ii. TheListingAgreementsenteredintobytheCompanywiththeStockExchanges.(NotApplicableasthesharesoftheCompanyarenotlistedonanyStockExchange)

Duringtheauditperiodunderreview,theCompanyhascompliedwiththeapplicableprovisionsoftheAct,Rules,Regulations,Guidelines,Standardsetc.asmentionedabove.


We further report that:DuringtheauditperiodunderreviewtherewerenospecificlawswhichwereexclusivelyapplicabletotheCompany/Industry.HoweverhavingregardtotheCompliancesystemprevailingintheCompanyandonexaminationofrelevantdocumentsandrecordsontest-checkbasis,theCompanyhascompliedwiththematerialaspectsofthefollowingsignificantlawsapplicabletotheCompanybeingengagedintheAircargoactivitiesandTradingactivities:

1. ForeignTradePolicy2. MajorPortTrustsAct,19633. TheAirportsEconomicRegulatoryAuthorityofIndiaAct,2008

We further report that:TheBoardofDirectorsoftheCompanyisdulyconstitutedwithproperbalanceofExecutiveDirectors,Non-ExecutiveDirectorsand IndependentDirectors. Thechanges in thecompositionofBoard tookplaceduring theyearunderreviewwerecarriedoutincomplianceoftheprovisionsofAct.

AdequatenoticeisgiventoalldirectorsatleastsevendaysinadvancetoscheduletheBoardMeetingsandagendaanddetailed notes on agendawere sentwell in advance anda systemexists for seeking and obtaining furtherinformationandclarificationsontheagendaitemsbeforethemeetingandformeaningfulparticipationatthemeeting.

DecisionsatthemeetingsofBoardofDirectors/CommitteesoftheCompanywerecarriedunanimously.Wewereinformedthattherewerenodissentingviewsofthemembers’onanyofthemattersduringtheyearthatwererequiredtobecapturedandrecordedaspartoftheminutes.

We further report that:Based on the review of compliance mechanism established by the Company, the information provided by theCompany, itsofficersandauthorized representativesduringtheconductof theaudit thereareadequatesystemsandprocessesintheCompanycommensuratewiththesizeandoperationsoftheCompanytomonitorandensurecompliancewithapplicablegenerallaws,rules,regulationsandguidelinessuchasLabourLaws,theIndianCopyrightAct,1957,thePatentsAct,1970,theTradeMarksAct,1999andEnvironmentLaws.

We further report that:TheComplianceby theCompanyof theapplicablefinancial laws likeDirectand Indirect Tax laws,hasnotbeenreviewedinthisAuditsincethesamehavebeensubjecttothereviewbytheStatutoryAuditor(s)andotherdesignatedprofessionals.

We further report that :

DuringtheAuditperiodunderreviewtherewerenoinstancesof:

1. Publicissue/RightissueofShares/Debentures/SweatEquityetc;2. Redemption/Buy–BackofSecurities;3. MajordecisionstakenbythemembersinpursuancetoSection180oftheCompaniesAct,2013;4. Merger/amalgamation/Reconstructionetc;5. ForeignTechnicalCollaboration.

Place: AhmedabadDate: July 31st, 2018

ForUmesh Parikh & AssociatesCompany Secretaries

Umesh G. ParikhPracticing Company Secretary

(Proprietor)FCS No.: 4152 C. P. No.: 2413

Note:ThisreportistobereadwithourletterofevendatewhichisannexedasAnnexure - Aandformsanintegralpartofthisreport.


Annexure ATo,TheMembers,GSEC LIMITEDCIN- U52100GJ1965PLC001347

Ourreportofevendateistobereadalongwiththisletter:

1. MaintenanceofSecretarialrecordsistheresponsibilityofthemanagementofthecompany.Ourresponsibilityistoexpressanopiniononthesesecretarialrecordsbasedonouraudit.

2. Wehavefollowedtheauditpracticesandprocessesaswereappropriatetoobtainreasonableassuranceaboutthecorrectnessof thecontentsof secretarial records. Theverificationwasdonewith respect to thecompletesecretarialrecordstoensurethatcorrectfactsarereflectedtherein.Webelievethattheprocessesandpractices,wefollowprovideareasonablebasisforouropinion.

3. Wehavenot verified thecorrectnessandappropriatenessof financial recordsandbooksofaccountsof thecompany.

4. Whereverrequired,wehaveobtainedthemanagementrepresentationaboutthecomplianceoflaws,rulesandregulationsandhappeningofeventsetc.

5. The compliance of the provision of other applicable laws, rules, regulations, standards is the responsibility ofmanagement.Ourexaminationwaslimitedtoverificationofvariousproceduresontestcheckbasis.

6. Thesecretarialauditreport isneitheranassuranceastothefutureviabilityofthecompanynortheefficacyoreffectivenesswithwhichthemanagementhasconductedtheaffairsofthecompany.

Place: AhmedabadDate: July 31st, 2018

ForUmesh Parikh & AssociatesCompany Secretaries

Umesh G. ParikhPracticing Company Secretary

(Proprietor)FCS No.: 4152 C. P. No.: 2413


ANNEXURE - F

Details of Conservation of Energy, Technology Absorption, Foreign Exchange Earning and Outgo(Pursuant to provisions of Section 134 (3) (m) of the Companies Act, 2013 read with Rule 8(3) of the Companies

(Accounts) Rules, 2014).

(A) Conservation of energy:(i) the steps taken or impact on conservation of

energy;Inordertoconserveresources,theCompanyhastakenmeasures and applied control system to monitor daytodaypowerconsumption, toendeavortoensuretheoptimal use of energy with minimum extent possiblewastage as far as possible. On account of measurestaken,itreducestheenergyconsumption.

(ii) the steps taken by the company for utilizingalternatesourcesofenergy;

N.A.

(iii) the capital investment on energy conservationequipments

N.A.

(B) Technology absorption:(i) theeffortsmadetowardstechnologyabsorption; ThereisnotechnologyabsorptionandCompanyhasnot

incurredanyResearchanddevelopmentexpenditure.(ii) The benefits derived like product improvement,

cost reduction, product development or importsubstitution

N.A.

(iii) incaseofimportedtechnology(importedduringthelastthreeyearsreckonedfromthebeginningofthefinancialyear:-

N.A.

thedetailsoftechnologyimported; N.A.

theyearofimport N.A.whetherthetechnologybeenfullyabsorbed N.A.ifnotfullyabsorbed,areaswhereabsorptionhasnottakenplace,andthereasonsthereof;

N.A.

(iv) the expenditure incurred on Research andDevelopment

N.A.

(C) Foreign Exchange Earning and Outgo:

(i) ForeignExchangeEarning During the year under review, earnings in ForeignCurrencyamountedtoNIL.

(ii) ForeignExchangeOutgo Duringtheyearunderreview,outgoinForeignCurrencyamountedto₹63.56Lakhs.(Previousyear₹33.23Lakhs)



DIN: 00421920


ANNEXURE - G

Nomination and Remuneration Policy for Directors, Key Managerial Personnel and other Senior Employees of GSEC limited

I. TERMS OF REFERENCE TO THE NOMINATION AND REMUNERATION COMMITTEE:• Toidentifypersonswhoarequalifiedtobecomedirectorsandwhomaybeappointedinseniormanagementin

accordancewiththecriterialaiddown;• TorecommendtotheBoardtheirappointmentandremovalandshallcarryoutevaluationofdirectorsperformance;• Toformulatethecriteriafordeterminingqualifications,positiveattributesandindependenceofadirector;• TorecommendtotheBoard,apolicyrelatingtotheremunerationforthedirectors,keymanagerialpersonneland

otheremployees.”

II. APPLICATION:ThisPolicyappliestotheBoardofDirectors,KeyManagerialPersonnelandSeniorManagementPersonnelofGSECLimited(‘theCompany’).Thepolicyenvisagestheframeworkfornomination,remunerationandevaluationofBoardofDirectors,KeyManagerialPersonnelandSeniorManagementPersonnelinaccordancewithprovisionsofCompaniesAct,2013(‘theAct’)includingtherulesmadethereunderasmaybeapplicable.

III. OBJECTIVITY:TheCompanyaimstoachievebalanceofmerits,experienceandskillsamongstitsDirectors,KeyManagerialPersonnelandSeniorManagementPersonnel.

1. DEFINITIONS:• “Board”meansBoardofDirectorsoftheCompany.• “Committee”meansNominationandRemunerationCommitteeoftheCompanyasconstitutedorre-

constitutedbytheBoardfromtimetotime.• “KeyManagerialPersonnel”(KMP)means:

a)ChiefExecutiveOfficerorManagingDirectorortheManager,b)Whole-timeDirectorc)ChiefFinancialOfficerd)CompanySecretaryande)SuchotherofficersasmaybeprescribedundertheActfromtimetotime

• “SeniorManagementPersonnel”(SMP)meanspersonneloftheCompanywhoaremembersofthecoremanagementteam,excludingBoardofDirectorsandareonelevelbelowtheExecutiveDirectorsincludingallFunctionalHeads.

• “CompanyPolicy”meansthepolicyofHumanResourceDepartmentoftheCompanyaslaiddownfromtimetotime.

2. APPOINTMENT AND REMOVAL OF DIRECTOR, KMP AND SMP:• TheCommittee shall consider criteria such as qualifications, skills, expertise and experience of the

persontobeappointedasDirector,KMPoratSeniorManagementlevelandaccordinglyrecommendtotheBoardhis/herappointment.

• TheageofpersontobeappointedasaNon-ExecutiveDirectorshallnotbelessthan21yearsandmorethan75years.TheCommitteeat itsdiscretionmayrecommendtotheBoardcontinuationofDirectorforfurthertermofappointmentwhohascompleted75years.

• TheageofpersontobeappointedasanExecutiveDirectorshallnotbelessthan21yearsandnotmorethan70years.TheCommitteeat itsdiscretionmayrecommendtotheBoardcontinuationofDirectorforfurthertermofappointmentwhohascompleted70years.

• TheCompany shouldensure that theperson soappointedasDirector isnotdisqualifiedunder theCompaniesAct,2013,rulesmadethereunder,ListingAgreementoranyotherenactmentforthetimebeinginforce.

• TheDirector/IndependentDirector/KMP/SMPshallbeappointedaspertheprovisionsandprocedurelaiddownundertheCompaniesAct,2013includingrulesmadethereunder,asmaybeapplicableoranyotherenactmentforthetimebeinginforce.

• The Committee may recommend to the Board for removal of a Director on account of anydisqualificationmentioned in theCompaniesAct,2013, rulesmade thereunderorunderanyother


applicable Act, rules and regulations or any other reasonable ground. The Committee may alsorecommendtotheBoardforremovalofKMPorSMPsubjecttotheprovisionsandcomplianceoftheapplicableAct,rulesandregulations.

• TermandtenureofaDirectorshallbeinaccordancewiththeprovisionsoftheCompaniesAct,2013rulesmadethereunderasmaybeapplicableandamendedfromtimetotime.

3. REMUNERATION OF DIRECTORS, KMP AND SMP:A. DIRECTORS –

TheBoardofDirectorsoftheCompanyshalldecidetheremunerationofExecutive/Non-ExecutiveDirectorsonthebasisofrecommendationoftheCommitteesubjecttotheoveralllimitsprovidedundertheCompaniesAct,2013andrulesmadethereunder,includinganyamendments,modificationsandre-enactmentsthereto(‘theAct’)andincompliancewiththeprovisionsofthelistingagreementasapplicablefromtimetotime.

TheremunerationofDirectorsshallbeapprovedbytheshareholdersoftheCompanyasandwhenrequired.

i. EXECUTIVE DIRECTORS –TheCompanyshallenter intoacontractwitheveryExecutiveDirector,whichwill setout thetermsandconditionsofappointmentand tenure,as recommendedby theCommitteeandapprovedbytheBoard.

TheBoardmayvaryanytermsorconditionsofthecontractfromtimetotimewithinthetenuresubjecttosuchapprovalsasmayberequiredundertheAct.

Theremunerationcomponentsshallincludeinteralia:

a. Fixed salary:Each Executive Director shall be paid fixed salary consisting of basic salary and suchallowancesandperquisitesasmayberecommendedbytheCommitteeanddecidedbytheBoardandperformanceevaluationofeachExecutiveDirectorfromtimetotime,subjecttooveralllimitsasprescribedundertheAct.Thesalarymaybereviewed;(i) FromtimetotimeasthoughtfitbytheCommittee.

(ii) AnnuallywithinthelimitsassetbytheCompanywithintheoveralllimitas fixedbytheshareholdersoftheCompany.

b. Commission:TheBoardmayapprovepaymentofcommissionsubjecttothelimitsprovidedintheAct.TheeligibilityandtheamountofcommissiontobepaidtoeachDirectorshallberecommendedbytheCommitteeonthebasisoftheperformanceevaluationoftheDirectorundertakenbytheCommitteeandtheBoard.

c. Separation / Retirement benefits:ExecutiveDirectorshallbeeligibletothefollowingperquisiteswhichshallbeincludedinthecomputationoftheceilingonremunerationprovidedintheAct:

i. Contributiontoprovidentfund,superannuationfundorannuityfundtotheextenttheseeithersinglyorputtogetherarenottaxableundertheIncometaxAct,1961oranyamendmentthereof,ii. Gratuitypayableataratenotexceedingonemonth’ssalaryforeachcompletedyearofserviceandiii.Encashmentofleaveattheendofthetenure.IncaseoflossorinadequacyofprofitsoftheCompany,theaforesaidperquisitesshallnotbeincludedincomputationoftheceilingonremunerationprovidedintheAct.

d. Non-monetary Benefits:ExecutiveDirectorshallbeeligibletothefollowingnon-monetarybenefitswhichshall,subjecttothetermsandconditionsoftheappointmentofExecutiveDirectorbytheshareholdersoftheCompany,notbeincludedinthecomputationofthelimit/ceilingonremuneration:

ExecutiveDirectorsmaybeentitledtoclubmembership,companyvehiclewithdriver,petrolreimbursement,vehiclemaintenance,telephone,fax,internetatresidence,reimbursementof


mobilephonebills,fullyfurnishedaccommodation(incaseofuseofownresidentialpropertyfor accommodation) or house rent allowance in lieu thereof, soft and hard furnishings,reimbursement of house maintenance expenditure, gas, electricity bill, water and otherutilitiesandrepairsatresidence,medicalexpenditure,includinghospitalizationexpensesforselfandfamily,leavetravelassistanceandentertainmentexpenses.

Executive Directormay also be entitled to personal accident insurance, group accidentinsurancecoverage,medical insurancecoverage, term insuranceoranyotherbenefitasperCompanypolicy.

ExecutiveDirectormaybeentitled to suchotheradditionalbenefitsasper theCompanyPolicy.

i. NON-EXECUTIVE DIRECTORS –TheCompanyshallissuealetterofappointmenttoeveryNon-ExecutiveIndependentDirector.ThecomponentsofpaymentofremunerationtoNon-ExecutiveDirectorsshallinclude:a. Sitting Fees:

SittingfeesshallbepaidforBoardMeetingsandanyCommitteeMeetingsattendedbytheDirector.Differentamountofsittingfeesmaybepaidfordifferenttypesofmeetingswithinlimitsasprescribedunder theAct.Committee shall includeAuditCommittee,NominationandRemunerationCommitteeShareTransferandShareholders’GrievancesCommitteeorsuchotherCommitteesasmaybeconstitutedbytheBoardfromtimetotime.

b. Commission:TheBoardmayapprovepaymentofcommissionsubjecttothelimitsprovidedintheAct.TheeligibilityandtheamountofcommissiontobepaidtoeachdirectorshallberecommendedbytheCommitteeonthebasisofannualperformanceevaluationofthedirector.

c. Professional Fees:Non IndependentDirectorsmaybepaid fees for services of professional nature, if in theopinionofCommittee,theDirectorpossessestherequisitequalificationforthepracticeoftheprofession.SuchprofessionalfeesshallnotbeconsideredasremunerationforthepurposeofAct.IndependentDirectorsmaybepaidthefeesforprovingservicesofprofessionalnatureonanarm’s lengthbasis, if in theopinionofCommittee, theDirectorpossesses the requisitequalificationforthepracticeoftheprofession.

B. KEY MANAGERIAL PERSONNEL AND SENIOR MANAGEMENT PERSONNEL –TheCompanyshallissueanappointmentlettertoeveryKMPandSMP.TheremunerationcomponentspayabletoKMP/SMPmaybe:

a. Fixed Salary:EachKMP/SMPshallbepaidfixedsalaryconsistingofbasicsalaryandsuchallowancesandperquisitesasperservicerulesoftheCompany.Thebandofthesalaryshallbedeterminedaccordingtotheindustrystandards,marketconditions,scaleofCompany’sbusinessrelatingto the position, educational qualification parameters and experience in the industry asdetailedintheservicerulesoftheCompanyandsuchotherfactorsasmaybeprescribedtherein. The same shall be reviewedannuallybasedon theCompany’sannualappraisalpolicy.

b. Variable Pay:ApportionoftheoverallsalarymaybepaidasvariablepaytoeveryKMP/SMP.ThisshallbeasperthePerformanceLinkedPaySchemeoftheCompany,whichisdesignedtobringaboutincreaseinoverallorganizationaleffectivenessthroughalignmentofCompany,FunctionalandIndividualobjectives.

c. Perquisites / Other Benefits Perquisites / Other Benefits:ThesearetobebenchmarkedwithIndustrypracticesfromtimetotimekeepinganoverallsalary structure in mind. These may include petrol reimbursement, vehicle maintenance,telephone,reimbursementofmobilephonebills,leavetravelassistanceandreimbursementofmedicalexpenditureforselfandfamilyandsuchotherbenefitsaspertheCompanyPolicy.


KMP / SMP may be entitled to personal accident insurance, group accident insurancecoverage, medical insurance coverage, term insurance and such other benefits as perCompanypolicy.

d. Annual Pay Revision / Promotion Evaluation of KMP / SMP:ThisshallbebasedonappraisalagainststatedObjectives/GoalsoftheindividualwhichinturnshallbealignedtotheFunctionalandEnterpriseScoreCard.KeyResultAreas(KRAs)aresetat thebeginningof theyear inconsultationwith theExecutiveDirector.Pay revisions/promotionswillbeachievementorientedandwillalsohavereferencetoIndustrybenchmarks,whereappropriate.e.Separation/RetirementbenefitsSeparation/retirementbenefitsasperCompanypolicywhichshallincludecontributiontoprovidentfund,superannuation,gratuityandleaveencashment.

C. DIRECTORS AND OFFICERS LIABILITY INSURANCE –TheCompanywilltakeDirectorsandOfficersLiabilityInsuranceorsuchinsuranceoflikenatureforindemnifyinganyoftheDirectors,KMPandSMPagainstany liability inrespectofanynegligence,default,misfeasance,breachofdutyortrustforwhichtheymaybeguiltyinrelationtotheCompany.The premium paid on such insurance shall not be treated as part of remuneration payable toManagingDirector,WholeTimeDirector,ChiefExecutiveOfficer,ChiefFinancialOfficerorCompanySecretary.Providedthatifanysuchpersonisprovedtobeguilty,thepremiumpaidshallbetreatedaspartoftheremuneration.

D. STOCK OPTIONS –TheCommitteemayrecommendissueofstockoptionstoDirectors(otherthanIndependentDirectorsandPromoterDirectors),KMP/SMP,whichmaybegrantedbytheBoardsubjecttothecomplianceoftheprovisionsofapplicablelaws.

IV. CRITERIA FOR EVALUATION OF BOARD:TheevaluationofBoardshallbecarriedoutannuallyaspertheprovisionsoftheCompaniesAct,2013andrulesmadethereunderasmaybeapplicable.PerformanceevaluationofeachDirectorwillbebasedonthecriteriaaslaiddownfromtimetotimebytheNominationandRemunerationCommittee.

Criteria forperformanceevaluation shall includeaspects suchasattendance for themeetings,participationandindependenceduringthemeetings,interactionwithManagement,RoleandaccountabilitytotheBoard,knowledgeandproficiencyandanyotherfactorasmaybedecidedbytheNominationandRemunerationCommittee.Further,performanceevaluationofanExecutiveDirectorwillalsobebasedonbusinessachievementsoftheCompany.

V. AMENDMENT:BasedontherecommendationoftheCommittee,theBoardreservesitsrighttoamendormodifythisPolicyinwholeorinpart,atanytime,whenitdeemsappropriate,inaccordancewithanyamendmenttotheapplicableprovisionsoftheCompaniesAct,2013andrulesmadethereunderasmaybeapplicable.



DIN: 00421920


PursuanttoRegulation27readwithSc0heduleVofSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015, companies whose shares are listed on any Stock Exchange in India are required to attach the CorporateGovernanceReportinitsAnnualReport.WebelieveGoodCorporateGovernanceisasinequanonforthecompanyand hence though the company’s shares are not listedwith any Stock Exchange, your directors have thought itadvisabletofollowcertainaspectsofcorporategovernanceasperRegulation27readwithScheduleVofSEBI(ListingObligationsandDisclosureRequirements)Regulations,2015asagoodcorporatepractice.

1. COMPANY’S PHILOSOPHY ON CODE OF CORPORATE GOVERNANCE:CorporategovernancereflectsCompany’sculture,policies,relationshipwithitsstakeholders,itscommitmenttovaluesand its ethicalbusinessconduct.AtGSEC Limited (“theCompany”), It is our firmconviction thatgoodcorporategovernanceemergesfromtheapplicationofbestmanagementpracticesandcompliancewiththelawscoupledwith integrity, transparency,accountabilityandbusiness ethicsandhencewe follow fair, transparentandethicalgovernanceprocessesandpracticesembedded into thecultureofourorganisationandtheGSECGroup,whichensuresthattheinterestofallthestakeholdersareconsideredinabalancedandtransparentmanner.

2. BOARD OF DIRECTORS:Composition:-TheCompanyhasa fundamentally strongBoardwithanoptimummixof ExecutiveandNon- ExecutiveDirectorsincludingaWomanDirector.

TheBoardconsistsofeminent individualswithconsiderableprofessionalexpertiseandexperienceinfinance, legal,commercial,strategyandplanning,businessadministrationandotherrelatedfields,whonotonlybringawiderangeofexperienceandexpertise,butalsoimpartthedesiredlevelofindependencetotheBoard.TheBoard’sroles,functions,responsibilitiesandaccountabilityareclearlydefined.ThedaytodaymanagementoftheCompanyisentrustedwiththeSeniorManagementPersonneloftheCompanyandisheadedbytheChairmanandManagingDirectorwhoarefunctioningundertheoverallsupervision,directionandcontroloftheBoard.

TheBoardofDirectorscomprisesof7(Seven)DirectorsincludingOneExecutiveChairmancumManagingDirector,ThreeWhole-timeDirectorsandThreeNon-ExecutiveIndependentDirectors.TheBoardofDirectorsbelievesthat itscurrentcompositionisappropriatetomaintainindependenceoftheBoardofDirectorsandseparateitsfunctionsofgovernanceandmanagement.ThecompositionoftheBoardduringtheyearunderreviewwasinconformitywiththeprovisionsoftheCompaniesAct,2013andasamendedfromtimetotime(the‘Act’)andtheListingRegulations.

Board meetings:-TheBoardofDirectorsmeetsatleastfourtimesinayearwithamaximumtimegapofnotmorethanonehundred&twentydaysbetweentwoconsecutivemeetings.Additionalmeetingsof theBoardofDirectorsareheldasandwhendeemednecessarybytheBoardofDirectors.BoardMeetingsaregenerallyheldattheRegisteredOfficeoftheCompany.

Duringtheyearunderreview,theBoardofDirectorsmet5(five)times(1)24.06.2017,(2)26.08.2017,(3)28.09.2017,(4)27.12.2017and(5)30.03.2018.Thenecessaryquorumwaspresentatallthemeetings.

ThenamesandcategoryofDirectorsontheBoard,theirattendanceattheBoardMeetingsheldduringtheyearandalsoatthelastAnnualGeneralMeetingaregivenbelow:

Sr. No.

Names of Directors Category No. of Board

Meetings Attended

Attendance at last AGM

No. of Directorships

in other Companies#

1 ShriRakeshShah ExecutiveDirector(Chairman&Managing

Director)

5 Yes 6

2 ShriSamirMankad ExecutiveDirector(CEO&WholeTimeDirector)

4 Yes 2

3 ShriShaishavShah ExecutiveDirector(WholeTimeDirector)

5 Yes 6

CORPORATE GOVERNANCE REPORT


4 Smt.RajiShah ExecutiveDirector(WholeTimeDirector)

1 No 5

5 ShriChinubhaiShahCeasedason06.06.2018

Non-ExecutiveIndependentDirector

4 Yes 8

6 ShriBhalabhaiPatel Non-ExecutiveIndependentDirector

4 Yes 1

7 ShriNatwarlalPatelResignedwefon01.04.2018


3 No 5

8 ShriSandipParikh Non-ExecutiveIndependentDirector

4 Yes 4

9 ShriMaheswarSahuAppointedw.e.f.27.04.2018


NA NA 11

#As per the latest notices of disclosure received from the respective Directors.

ThetenureoftheIndependentDirectorsoftheCompanyiswithinthetimelimitprescribedundertheCompaniesAct,2013andclarifications/circularsissuedbytheMinistryofCorporateAffairsinthisregardsfromtimetotime.NoDirectoroftheCompanyisamemberinmorethantencommitteesoractsasChairmanofmorethanfivecommitteesacrossallcompaniesinwhichhe/sheisaDirector.

Disclosure of relationships between director’s inter-se:-ShriRakeshShah,ChairmanandManagingDirectorisfatherofShriShaishavShahWhole-timeDirectorandfatherinlawofSmt.RajiShahWhole-timeDirectorofthecompany.

ShriShaishavShahWhole-timeDirectorisspouseofSmt.RajiShahWhole-timeDirector.

3. AUDIT COMMITTEE:Cosmposition & Members of the Committee:-YourCompanyhasanAuditCommitteeat theBoard level,whichactsasa linkbetween theManagement, theStatutoryandInternalAuditorsandtheBoardofDirectors.TheAuditCommitteeoftheCompanycomprisedoffourmembersasonMarch31,2018.

Duringtheyear,TwoCommitteeMeetingswereheldon26.08.2017and30.03.2018.

ConstitutionoftheauditcommitteeandattendancedetailsduringthefinancialyearendedMarch31,2018aregivenbelow:Sr. No. Name of the Director /

Member Category Meetings and attendance

during the year1 ShriSandipParikh Non-ExecutiveIndependentDirector

(ChairmanoftheCommittee)2

2 ShriChinubhaiShahCeased as on 06.06.2018

Non-ExecutiveIndependentDirector 2

3 ShriBhalabhaiPatel Non-ExecutiveIndependentDirector 14 ShriSamirMankad ExecutiveWhole-timeDirector 25 ShriMaheswarSahu

Appointed w.e.f. 27.04.2018Non-ExecutiveIndependentDirector NA

Brief description of Terms of Reference:(i)overseethefinancialreportingprocess(ii)recommendtheappointment/re-appointmentofauditors(iii)decidetheauditfees,discussthenatureandscopeofauditandascertainareaofconcern,(iv)reviewtheannualandquarterlyfinancialstatements(v)reviewthechangesinaccountingpoliciesetc(vi)reviewtheadequacyofinternalauditfunctionsanddiscusswiththemsignificantfindings,(vii)reviewthedisclosureofrelatedpartytransactions,(viii)Compliancerelatingtofinancialstatementsetc.(ix)ScrutinyofIntercorporateLoanandInvestment.


4. NOMINATION AND REMUNERATION COMMITTEEComposition & Members of the Committee:-TheNominationandRemunerationCommitteeoftheCompanycompriseofthreemembersasonMarch31,2018,thecompositionofwhichisfurnishedhereunder:

Duringtheyear,TwoCommitteeMeetingswereheldon24.06.2017and30.03.2018.Sr. No. Name of the Director / Member Category Meetings and attendance

during the year1 ShriChinubhaiShah

(ChairmanoftheCommittee)Ceasedason06.06.2018


2 ShriBhalabhaiPatel Non-ExecutiveIndependentDirector 13 ShriNatwarlalPatel Non-ExecutiveIndependentDirector 14 ShriMaheswarSahu

Appointedw.e.f.27.04.2018Non-ExecutiveIndependentDirector NA

The terms of reference of the Nomination and Remuneration Committee are as outlined in the Companies Act, 2013 which inter alia includes following:

1. Toidentifypersonswhoarequalifiedtobecomedirectorsandwhomaybeappointedinseniormanagementinaccordancewiththecriterialaiddown,

2. TorecommendtotheBoardtheirappointmentandremovalandshallcarryoutevaluationofdirectorsperformance.

3. Toformulatethecriteriafordeterminingqualifications,positiveattributesandindependenceofadirector.4. TorecommendtotheBoardapolicyrelatingtotheremunerationforthedirectors,keymanagerialpersonnel

andotheremployees.

Performance Evaluation of Independent Directors:ThePerformanceoftheIndependentDirectorisevaluatedbasedonthecriteriasuchashisknowledge,experience,integrity,expertiseinanyarea,numberofBoard/Committeemeetingsattended,timedevotedtotheCompany,hisparticipationintheBoard/Committeemeetingsetc.ThePerformanceevaluationoftheIndependentDirectorswascarriedoutbytheBoardandwhileevaluatingtheperformanceoftheIndependentDirectors,theDirectorwhowassubjecttotheevaluationdidnotparticipate.

Detailsofremunerationpaidtotheexecutivedirectorsfortheyearended31.03.2018areasbelow:

Name Position held During the period Total Remuneration including perks and benefits (₹ in Lakhs)

ShriRakeshR.Shah Chairman&ManagingDirector 36.00ShriSamirH.Mankad CEO&Whole-timeDirector 29.76ShriShaishavR.Shah Whole-timeDirector 22.85Smt.RajiS.Shah Whole-timeDirector 8.54

TheCompanyhaspaidfollowingsittingfeestotheNon-executiveDirectorsduringtheyearunderreview.Name of Director Sitting fees paid (In ₹) No. of Shares heldShriChinubhaiShah 60000/- NilShriBhalabhaiPatel 45000/- NilShriNatwarlalPatel 15000/- NilShriSandipParikh 45000/- Nil

ANon-ExecutiveDirectorshallbeentitledtoreceivesittingfeesforeachmeetingoftheBoard/Committeeattendedbyhim,forwhichsuchsumispayablewhichiswithintheoveralllimitsprescribedundertheCompaniesAct,2013andTheCompanies(AppointmentandRemunerationofManagerialPersonnel)Rules,2014.Besidesabove,theCompanydoesnotpayanyothercommissionorremunerationtoitsNon-ExecutiveDirectors.


TheCompanydidnothaveanyotherpecuniaryrelationshiportransactionswiththeNon-ExecutiveDirectorsduringtheperiodunderreview.

INDEPENDENT DIRECTORS:Asper theprovisionsof theSchedule IVof theCompaniesAct, 2013 the IndependentDirectorsof theCompanyshallholdatleastonemeetingintheyearwithoutattendanceoftheNonIndependentDirectors.TheIndependentDirectorsattheirmeetingheldon30thMarch,2018hasreviewedtheperformanceoftheNonIndependentDirectors(IncludingtheChairperson)andassessedthequality,quantityandtimelinessoftheflowofinformationbetweentheCompanyandtheManagement.

TheIndependentDirectorsweresatisfiedwiththeperformanceoftheExecutiveDirectorsoftheCompanyandwiththeflowofinformationbetweentheCompanyandtheManagement.

5. SHARE TRANSFER AND GRIEVANCES COMMITTEEComposition & Members of the Committee:-TheBoardofDirectorsoftheCompanyhasconstitutedShareTransferandGrievancesCommitteewhichlooksintothemattersrelatingtotransferofsharesandotherrelatedmatter.

TheShareTransferandGrievancesCommitteeoftheCompanycomprisedofthreemembersasonMarch31,2018thecompositionofwhichisfurnishedhereunder.

Duringtheyear,TwoCommitteeMeetingswereheldon27.12.2017and20.03.2018.Sr. No. Name of the Director / Member Category Meetings and attendance

during the year1 ShriChinubhaiShah

(ChairmanoftheCommittee)Ceasedason06.06.2018


2 ShriRakeshShah ExecutiveManagingDirector 23 ShriSamirMankad ExecutiveWholeTimeDirector 14 ShriSandipParikh

Appointedw.e.f.21.06.2018Non-ExecutiveIndependentDirector NA

AsameasureofgoodcorporategovernanceandtofocusontheShareholders’requestastothetransferofshares,thecommitteedealswithissueofapprovaloftransfer/transmissionofshares,deletion/transpositionofnamesintheshares,matters relatingtosplitting,sub-division,consolidationofsharesandto issuefreshsharecertificateetc.TheCommitteealsodealswiththematterrelatingtoinvestor/shareholdersgrievances.

Nocomplaintshavebeenreceivedduringtheyearunderreview.

6. GENERAL BODY MEETINGS:Annual General Meetings:-Date,TimeandvenueoftheGeneralMeetingsheldduringthelast3years.

Financial year ended

Date Time Venue

31.03.2017 28.09.2017 11:30a.m. ShethSriKasturbhaiLalbhaiHall,GujaratChamberofCommerceandIndustries’Building,AshramRoad,Ahmedabad-380009

31.03.2016 29.09.2016 11:30a.m. ShethSriKasturbhaiLalbhaiHall,GujaratChamberofCommerceandIndustries’Building,AshramRoad,Ahmedabad-380009

31.03.2015 29.09.2015 11.00a.m. ShethSriKasturbhaiLalbhaiHall,GujaratChamberofCommerceandIndustries’Building,AshramRoad,Ahmedabad-380009


DetailsofSpecialResolutionspassedinthepreviousthreeAnnualGeneralMeetings:Date of the AGM Subject Matter of the Special Resolution28.09.2017 NoSpecialResolutionwaspassed.29.09.2016 Re-appointmentofShri.RakeshR.ShahasaChairmanandManagingDirectoroftheCompany29.09.2015 NoSpecialResolutionwaspassed

Extra Ordinary General Meeting(s):- NoExtra-ordinaryGeneralmeetingofthemembersoftheCompanywereheldduringtheyearunderreview.

Postal Ballot:-Duringtheyearunderreview,noapprovaloftheMemberswassoughtthroughpostalballot.NoneofthebusinessproposedtobetransactedattheensuingAGMrequirespassingofspecialresolutionthroughPostalBallot.

7. DISCLOSURES:Inpreparationoffinancial statements, theCompanyhas followedtheAccountingStandardsasapplicable to theCompany. The significantaccountingpolicies thatareconsistentlyappliedhavebeen setout in theNotes to theAccounts.ApartfromAccountingStandardswehavealsoinitiatedagoodcorporateandcompliancepracticeoffollowingcertainSecretarialStandard(s)issuedbytheInstituteofCompanySecretariesofIndia.

RelatedPartyTransactionsduringtheyearhavebeendisclosedasrequiredunderAccountingStandard18issuedbytheInstituteofCharteredAccountantsofIndia.DetailsofrelatedpartytransactionswereperiodicallyplacedbeforetheBoard.ThesetransactionsarenotlikelytohaveanyconflictwiththeCompany’sinterest.

Businessriskevaluationandmanagingsuchriskisanongoingprocesswithintheorganization.TheBoardisregularlybriefedofrisksassessedandthemeasuresadoptedbythecompanytomitigatetherisk.

8. GENERAL SHAREHOLDER INFORMATION:

Date,timeandvenueofAGM Friday,28thSeptember,2018,at11:30a.m.atShethSriKasturbhaiLalbhaiHall,GujaratChamberofCommerceandIndustriesBuilding,Ahmedabad-380009

RecordDate 28thdayofSeptember,2018.ListingonStockExchanges N.A.ListingFees N.A.ISINNO. INE825P01010StockExchange’sScriptCode N.A.DividendPaymentDate Within30daysofAGM

9. DEMATERIALIZATION OF SHARES, REGISTRAR & TRANSFER AGENT & SHARE TRANSFER SYSTEM:

a. Registrar and Share Transfer Agent:-Name: M/s.BigshareServicesPrivateLimited

Address: A/802SamudraComplex,NearKlassicGoldHotel,GrishColdDrinkCrossRoad,

OffCGRoad,Ahmedabad-380009.

ContactDetails:Phone:079-40024135

Email: [email protected]

b. Share Transfer System:-Transferof shares inphysical formhasbeendelegatedby theBoard to theRegistrarandShareTransferAgent, tofacilitatespeedyservicetotheshareholders.SharessentfortransferinphysicalformareregisteredbytheRegistrarandShareTransferAgentswithin20daysofreceiptofthedocuments,iffoundinorder.Sharesunderobjectionarereturnedwithintwoweeks.


c. Dematerialisation of shares:-Allrequestsfordematerializationofsharesareprocessed,iffoundinorderandconfirmationisgiventotherespectivedepositoryi.e.NationalSecuritiesDepositoryLtd(NSDL)within15days.

10. INVESTORS CORRESPONDENCE:

Foranyqueries,requestsandothercorrespondence,theShareholdersarerequestedtocontact:-Registered Office GSECLimited, 2ndFloor,GujaratChamber’sBuilding,AshramRoad,Ahmedabad-380009.Phone:079-26575757,079-26585757Fax:079-26584040 EMail:[email protected]

Registrar and Share Transfer AgentBigshareServicesPrivateLimitedA/802SamudraComplex,NearKlassicGoldHotel,GrishColdDrinkCrossRoad,OffCGRoad,Ahmedabad-380009.Phone:079-40024135EMail:[email protected]

Complaints/[email protected]



DIN: 00421920

(Standalone)


To the Members of GSEC Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of GSEC Limited (‘the Company’), whichcomprisethebalancesheetasat31March2018,thestatementofprofitandlossandthecashflowstatementfortheyearthenended,andasummaryofsignificantaccountingpoliciesandotherexplanatoryinformation.

Management’s Responsibility for the Standalone Financial Statements

TheCompany’sBoardofDirectorsisresponsibleforthemattersstatedinSection134(5)oftheCompaniesAct,2013(“theAct”)withrespecttothepreparationandpresentationofthesestandalonefinancialstatementsthatgiveatrueandfairviewofthefinancialposition,financialperformanceandcashflowsoftheCompanyinaccordancewiththeaccountingprinciplesgenerallyacceptedinIndia,includingtheAccountingStandardsspecifiedunderSection133oftheAct,readwithRule7oftheCompanies(Accounts)Rules,2014.Thisresponsibilityalso includesmaintenanceofadequateaccounting records inaccordancewith theprovisionsof theAct for safeguarding theassetsof theCompanyandforpreventinganddetectingfraudsandotherirregularities;selectionandapplicationofappropriateaccountingpolicies;makingjudgmentsandestimatesthatarereasonableandprudent;anddesign,implementationandmaintenanceofadequateinternalfinancialcontrols,thatwereoperatingeffectivelyforensuringtheaccuracyandcompletenessoftheaccountingrecords,relevanttothepreparationandpresentationofthefinancialstatementsthatgiveatrueandfairviewandarefreefrommaterialmisstatement,whetherduetofraudorerror.

Auditor’s Responsibility

Ourresponsibilityistoexpressanopiniononthesestandalonefinancialstatementsbasedonouraudit.

WehavetakenintoaccounttheprovisionsoftheAct,theaccountingandauditingstandardsandmatterswhicharerequiredtobeincludedintheauditreportundertheprovisionsoftheActandtheRulesmadethereunder.

WeconductedourauditinaccordancewiththeStandardsonAuditingspecifiedunderSection143(10)oftheAct.ThoseStandardsrequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreefrommaterialmisstatement.

Anaudit involvesperformingprocedures toobtainaudit evidenceabout theamountsand thedisclosures in thefinancialstatements.Theproceduresselecteddependontheauditor’sjudgment,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorconsidersinternalfinancialcontrolrelevanttothecompany’spreparationofthefinancialstatementsthatgiveatrueandfairviewinordertodesignauditproceduresthatareappropriateinthecircumstances.AnauditalsoincludesevaluatingtheappropriatenessoftheaccountingpoliciesusedandthereasonablenessoftheaccountingestimatesmadebytheCompany’sDirectors,aswellasevaluatingtheoverallpresentationofthefinancialstatements.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopiniononthestandalonefinancialstatements.

Opinion

Inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,theaforesaidstandalonefinancialstatementsgivetheinformationrequiredbytheActinthemannersorequiredandgiveatrueandfairviewinconformitywiththeaccountingprinciplesgenerallyacceptedinIndia,ofthestateofaffairsoftheCompanyasat31March2018anditsprofitanditscashflowsfortheyearendedonthatdate.

Report on Other Legal and Regulatory Requirements

1. AsrequiredbytheCompanies(Auditor’sReport)Order,2016(“theOrder”)issuedbytheCentralGovernmentofIndiaintermsofsub-section(11)ofsection143oftheAct,wegiveintheAnnexureA,astatementonthemattersspecifiedintheparagraph3and4oftheorder.

INDEPENDENT AUDITORS REPORT

(Standalone)


2. AsrequiredbySection143(3)oftheAct,wereportthat:(a) Wehavesoughtandobtainedalltheinformationandexplanationswhichtothebestofourknowledgeand

beliefwerenecessaryforthepurposesofouraudit;(b) Inouropinionproperbooksofaccountas requiredby lawhavebeen keptby thecompany so faras it

appearsfromourexaminationofthosebooks;(c) Thebalancesheet,thestatementofprofitandlossandthecashflowstatementdealtwithbythisreportare

inagreementwiththebooksofaccount;(d) Inouropinion,theaforesaidstandalonefinancialstatementscomplywiththeaccountingstandardsspecified

undersection133oftheact,readwithrule7ofthecompanies(accounts)rules,2014;(e) On the basis of thewritten representations received from the directors as on 31stMarch 2018 and taken

on recordbytheboardofdirectors,noneof thedirectors isdisqualifiedason31stMarch2018 frombeingappointedasadirectorintermsofsection164(2)oftheact;

(f) Withrespecttotheadequacyoftheinternalfinancialcontrolsoverfinancialreportingofthecompanyandtheoperatingeffectivenessofsuchcontrols,refertoourseparatereportin“Annexure B”;and

(g) With respect to theothermatters tobe included in theauditor’s report inaccordancewith rule11of thecompanies(auditandauditors)rules,2014,inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous:(i) Asdetailed inNote25(iv)of thenotes to the standalone financial statements, theCompanyhas

disclosedtheimpactofpendinglitigationonitsfinancialstatements.

(ii) TheCompanydidnothaveanylong-termcontractsincludingderivativecontractsforwhichtherewereanymaterialforeseeablelosses.

(iii) Therehasbeennodelayintransferringamounts,requiredtobetransferred,totheInvestorEducationandProtectionFundbytheCompany.

For BJS & AssociatesChartered Accountants

Firm Registration No.:113268WPlace: AhmedabadDate: 28th August 2018

CA BIPIN SHAHPartner

Membership No.: 10712

(Standalone)


Annexure - A to the Auditors’ Report

TheAnnexurereferredtoinIndependentAuditors’ReporttothemembersoftheCompanyonthestandalonefinancialstatementsfortheyearended31March2018,wereportthat:

i. a. TheCompanyhasmaintainedproperrecordsshowingfullparticulars,includingquantitativedetailsandsituationoffixedassets.

b. Asexplainedtous,fixedassets,accordingtothepracticeoftheCompany,arephysicallyverifiedbythemanagement,inouropinion,isreasonablelookingtothesizeoftheCompanyandthenatureofitsassetsandnomaterialdiscrepancieswerenoticedonsuchverification.

c. AccordingtotheinformationandexplanationsgiventousandonthebasisofourexaminationoftherecordsoftheCompany,thetitledeedsofimmovablepropertiesareheldinthenameoftheCompany.

ii. The inventories have been physically verified by the Management during the year at reasonableinterval.Inouropinion,thefrequencyofverificationisreasonable.Thediscrepanciesnoticedonphysicalverificationofinventoriesascomparedtobookrecordswerenotmaterialandhavebeenproperlydealtwithinthebooksofaccount.

iii. TheCompanyhasnotgrantedsecuredorunsecuredloanstocompanies,limitedliabilitypartnershiporotherparties.

a. Inouropinion,therateofinterestandothertermsandconditionsonwhichtheloanshadbeengrantedtothebodiescorporatelistedintheregistermaintainedunderSection189oftheActwerenot,primafacie,prejudicialtotheinterestoftheCompany.

b. Inthecaseoftheloansgrantedtothebodiescorporatelistedintheregistermaintainedundersection189oftheAct,theborrowershavebeenregularinthepaymentoftheprincipalandinterestasstipulated.

c. Therearenooverdueamountsinrespectoftheloangrantedtoabodycorporatelistedintheregistermaintainedundersection189oftheAct.

iv. Inouropinionandaccordingtotheinformationandexplanationsgiventous,theCompanyhascompliedwiththeprovisionsofsection185and186oftheAct,withrespecttotheloansandinvestmentsmadeandguaranteesandsecurityprovidedbyit.

v. TheCompanyhasnotacceptedanydepositsfromthepublicwithinmeaningofSections73to76oftheCompaniesAct,2013andtherulesframedthereundertotheextentnotified.

vi. TheCentralGovernmenthasnotprescribedthemaintenanceofcostrecordsundersection148(1)oftheAct,foranyoftheservicesrenderedbytheCompany.

vii. a. AccordingtotheinformationandexplanationsgiventousandonthebasisofourexaminationoftherecordsoftheCompany,amountsdeducted/accruedinthebooksofaccountinrespectofundisputedstatutoryduesincludingprovidentfund,income-tax,salestax,valueaddedtax,dutyofcustoms,servicetax,cessandothermaterialstatutorydueshavebeengenerallyregularlydepositedduringtheyearbytheCompanywiththeappropriateauthorities.

According to the informationandexplanations given to us, undisputedamounts payable in respectofprovidentfund,incometax,salestax,valueaddedtax,dutyofcustoms,servicetax,cessandothermaterialstatutoryduesofGSTPayableofRs.9,33,962wereinarrearsasat31March2018foraperiodofmorethansixmonthsfromthedatetheybecamepayable.

b. According to the records of the Company and information and explanation given to us, followingstatutoryduesasmentionedinparagraph3(vii)(a)whichhavenotbeendepositedonaccountofanydispute.

(Standalone)


Statute Nature of Dues Forum where dispute is pending

Period to which the amount relates

Amount Involved (₹ In Lakhs)

CustomsAct,1962 CustomDuty AppellateAuthorityuptoCommissionerLevel

2011-12 310.26

VATTaxAct,Gujarat ValueAddedTax Tribunal 2007-08and2008-09 862.39ServiceTax ServiceTaxon

ExemptedIncomeAdditionalCommissioner,ServiceTax-Ahmedabad

2009-10to2012-13 39.02

IncomeTax IncomeTax(Assessment)

CIT(Appeals) 2009-10 1.62

IncomeTax IncomeTax(Assessment)

CIT(Appeals) 2011-12 14.21

Company has transferred amount of ₹ 34,525/- to the Investor Education and Protection Fund inaccordancewiththeprovisionsofSection205A(5)inTheCompaniesAct,1956duringtheyear.

viii. Accordingtotherecordsofthecompanyexaminedbyusandtheinformationandexplanationsgiventous,thecompanyhasnotdefaultedinrepaymentofloansorborrowingstoanyfinancialinstitutionsorbankorGovernmentduringtheyear.TheCompanyhasnotissuedanydebentures.

ix. Based upon the audit procedures performed and the information and explanations given by themanagement,thecompanyhasnotraisedmoneysbywayofinitialpublicofferorfurtherpublicoffer(includingdebt instruments). The termLoanshavebeenapplied for thepurpose forwhich theywereobtained.

x. During the course of our examination of the books and records of the Company, carried out inaccordancewiththegenerallyacceptedauditingpracticesinIndia,andaccordingtotheinformationand explanations given to us, we have neither come across any instance of material fraud by theCompanyorontheCompanybyitsofficersoremployees,noticedorreportedduringtheyear,norhavewebeeninformedofanysuchcasebytheManagement.

xi. AccordingtotheinformationandexplanationsgivetousandbasedonourexaminationoftherecordsoftheCompany,theCompanyhaspaid/providedformanagerialremunerationinaccordancewiththerequisiteapprovalsmandatedbytheprovisionsofsection197readwithScheduleVtotheAct.

xii. Inouropinionandaccordingtotheinformationandexplanationsgiventous,theCompanyisnotanidhicompany.Accordingly,paragraph3(xii)oftheOrderisnotapplicable.

xiii. AccordingtotheinformationandexplanationsgiventousandbasedonourexaminationoftherecordsoftheCompany,transactionswiththerelatedpartiesareincompliancewithsections177and188oftheActwhereapplicableanddetailsofsuchtransactionshavebeendisclosedinthefinancialstatementsasrequiredbytheapplicableaccountingstandards.

xiv. Accordingtotheinformationandexplanationsgiventousandonthebasisofourexaminationoftherecords,theCompanyhasnotmadeanypreferentialallotmentorprivateplacementofshares,fullyorpartiallyconvertibledebenturesduringtheyearunderreview.Accordinglytheprovisionsofparagraph3(xiv)oftheorderarenotapplicable.

xv. Accordingtotheinformationandexplanationsgiventousandbasedonourexaminationoftherecordsof theCompany, theCompanyhasnotentered intonon-cash transactionswithdirectorsorpersonsconnectedwithhim.Accordingly,provisionsofparagraph3(xv)oftheOrderisnotapplicable.

xvi. Accordingtotheinformationandexplanationsgiventous,thecompanyisnotrequiredtoberegisteredundersection45-IAoftheReserveBankofIndiaAct,1934andaccordingly,theprovisionsof3(xvi)oftheOrderarenotapplicable.


Firm Registration N0.:113268W Place: Ahmedabad Date: 28th August 2018



(Standalone)


Annexure - B to the Auditors’ Report

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of theCompanies Act, 2013 (“the Act”)

Wehaveauditedthe internalfinancialcontrolsoverfinancial reportingofGSECLimited(“theCompany”)asof31March2018inconjunctionwithourauditofthestandalonefinancialstatementsoftheCompanyfortheyearendedonthatdate.

Management’s Responsibility for Internal Financial Controls

TheCompany’smanagementisresponsibleforestablishingandmaintaininginternalfinancialcontrolsbasedontheinternalcontroloverfinancial reportingcriteriaestablishedbytheCompanyconsideringtheessentialcomponentsofinternalcontrolstatedintheGuidanceNoteonAuditofInternalFinancialControlsoverFinancialReportingissuedbytheInstituteofCharteredAccountantsofIndia(‘ICAI’).Theseresponsibilitiesincludethedesign,implementationandmaintenanceof adequate internal financial controls thatwere operating effectively for ensuring the orderlyandefficientconductofitsbusiness,includingadherencetocompany’spolicies,thesafeguardingofitsassets,thepreventionanddetectionoffraudsanderrors,theaccuracyandcompletenessoftheaccountingrecords,andthetimelypreparationofreliablefinancialinformation,asrequiredundertheCompaniesAct,2013.

Auditors’ Responsibility

OurresponsibilityistoexpressanopinionontheCompany’sinternalfinancialcontrolsoverfinancialreportingbasedonouraudit.WeconductedourauditinaccordancewiththeGuidanceNoteonAuditofInternalFinancialControlsoverFinancialReporting(the“GuidanceNote”)andtheStandardsonauditing, issuedbyICAIanddeemedtobeprescribedundersection143(10)oftheCompaniesAct,2013,totheextentapplicabletoanauditofinternalfinancialcontrols, bothapplicable toanaudit of Internal FinancialControls and, both issuedby the Institute ofCharteredAccountantsofIndia.ThoseStandardsandtheGuidanceNoterequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetheradequateinternalfinancialcontrolsoverfinancialreportingwasestablishedandmaintainedandifsuchcontrolsoperatedeffectivelyinallmaterialrespects.

Ouraudit involvesperformingprocedures toobtainaudit evidenceabout theadequacyof the internal financialcontrolssystemoverfinancialreportingandtheiroperatingeffectiveness.

Ourauditofinternalfinancialcontrolsoverfinancialreportingincludedobtaininganunderstandingofinternalfinancialcontrolsover financial reporting,assessing the risk thatamaterialweaknessexists,and testingandevaluating thedesignandoperatingeffectivenessofinternalcontrolbasedontheassessedrisk.Theproceduresselecteddependontheauditor’sjudgment,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.

WebelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinionontheCompany’sinternalfinancialcontrolssystemoverfinancialreporting.

Meaning of Internal Financial Controls over Financial Reporting

Acompany’sinternalfinancialcontroloverfinancialreportingisaprocessdesignedtoprovidereasonableassuranceregarding the reliability of financial reportingand thepreparationof financial statements for external purposes inaccordancewithgenerallyacceptedaccountingprinciples.Acompany’s internal financialcontrolover financialreportingincludesthosepoliciesandproceduresthat(1)pertaintothemaintenanceofrecordsthat, inreasonabledetail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) providereasonableassurancethattransactionsarerecordedasnecessarytopermitpreparationoffinancialstatements inaccordancewithgenerallyacceptedaccountingprinciples,andthatreceiptsandexpendituresofthecompanyarebeingmadeonlyinaccordancewithauthorisationsofmanagementanddirectorsofthecompany;and(3)providereasonableassuranceregardingpreventionortimelydetectionofunauthorisedacquisition,use,ordispositionofthecompany’sassetsthatcouldhaveamaterialeffectonthefinancialstatements.

(Standalone)


Inherent Limitations of Internal Financial Controls over Financial Reporting

Becauseof the inherent limitationsof internal financialcontrolsover financial reporting, including thepossibilityofcollusionorimpropermanagementoverrideofcontrols,materialmisstatementsduetoerrororfraudmayoccurandnotbedetected.Also,projectionsofanyevaluationoftheinternalfinancialcontrolsoverfinancialreportingtofutureperiodsare subject to the risk that the internal financialcontroloverfinancial reportingmaybecome inadequatebecauseofchangesinconditions,orthatthedegreeofcompliancewiththepoliciesorproceduresmaydeteriorate.

Opinion

Inouropinion,theCompanyhas,inallmaterialrespects,anadequateinternalfinancialcontrolssystemoverfinancialreportingandsuchinternalfinancialcontrolsoverfinancialreportingwereoperatingeffectivelyasat31March2018,basedontheinternalcontroloverfinancialreportingcriteriaestablishedbytheCompanyconsideringtheessentialcomponentsof internalcontrol stated in theGuidanceNoteonAuditof InternalFinancialControlsOverFinancialReportingissuedbytheInstituteofCharteredAccountantsofIndia.





(Standalone)


BALANCE SHEET AS AT 31st MARCH,2018

(₹ in Lakhs)Particulars Notes 31st March,2018 31st March,2017

I.

1

EQUITY AND LIABILITIES

Shareholders’ funds(a)ShareCapital(b)ReservesandSurplus

12

755.00 2,232.03

755.001,868.16

2 Share application money pending for allotment - -3 Non-current liabilities

(a)Long-TermBorrowings(b)OtherLongTermLiabilities

34

201.54

9.27 180.5718.84

4 Current liabilities(a)Short-TermBorrowings(b)TradePayables(c)OtherCurrentLiabilities(d)Short-TermProvisions

5678

1,024.49 2,633.83

671.77 81.30

1,339.61838.40345.1187.34

TOTAL 7,609.06 5,433.03 II. ASSETS1 Non-Current Assets

(a)FixedAssets(i)TangibleAssets

(b)Non-CurrentInvestments(c)DeferredTaxAssets(Net)(d)Long-TermLoansandAdvances

910

11

1,676.92 256.04

90.18 324.28

1,628.34303.8980.06208.63

2 Current Assets(a)CurrentInvestments(b)Inventories(c)TradeReceivables(d)CashandBankBalance(e)Short-TermLoansandAdvances(f)OtherCurrentAssets

121314151617

5.00 22.37

3,483.33 673.54

1,068.52 8.88

255.0010.02857.58

1,022.711,050.43

16.38TOTAL 7,609.06 5,433.03

SignificantAccountingPolicies 24TheaccompanyingnotesareintegralpartsoftheFinancialStatements

As per our attached report of even date

For BJS & AssociatesChartered AccountantsFirm Registration No. 113268W




(Standalone)


(₹ in Lakhs) Particulars Notes 2017-18 2016-17I. Revenue From Operations

SaleofTradedGoods(Gross)Less:ExciseDutySale of Trading Goods (Net)SaleofServicesOtherOperatingRevenues 18

34142.04 -

34142.04 3573.38

252.00

33260.17-

33260.172975.17202.51

II. Other Income 19 424.20 166.24III. Total Revenue (I+II) 38391.62 36604.09IV. Expenses:

PurchaseofTradedGoodsChangesinInventoriesofStock-inTradeEmployeeBenefitsExpenseFinanceCostsDepreciationandAmortizationExpenseOtherExpenses

202122

23

34307.15 (12.35)410.99 267.89 279.79

2595.21

33234.39-

370.08235.31246.852183.42

Total Expenses 37848.68 36270.05V. Profit Before Exceptional Items And Tax (III-IV) 542.94 334.05VI. Exceptional Items - -VII. Profit Before Tax (V-VI) 542.94 334.05 VIII. Tax Expense:

(1)CurrentTax(2)DeferredTax(3)TaxAdjustmentofEarlierYears

143.60 (10.12)

0.15

112.702.110.02

IX. Profit for the Year (VII-VIII) 409.31 219.21 X. Earnings Per Equity Share (in ₹) 5.42 2.90

SignificantAccountingPolicies 24TheAccompanyingNotesareIntegralPartsoftheFinancialStatements






STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31st MARCH, 2018

(Standalone)


(₹ in Lakhs)PARTICULARS For the Year ended

31st March 2018For the Year ended

31st March 2017CASH FLOW FROM OPERATING ACTIVITIESProfit before tax and exceptional items 542.79 334.04 Adjustments For: DepreciationInterestPaidInterestreceivedBadDebtswrittenoff(Profit)/LossonSaleofFixedAssetsDividendReceivedMisc.Dr/Cr/Writtenoff

279.79 267.89 (72.53)

41.62 -

(3.40) 80.28

246.85235.31(75.67)336.68(24.07)(2.14)

-Operating Profit before working capital changes 1136.44 1051.00 MovementsinworkingcapitalAdjsutment for Decrease (Increase) in opearting assetsDecreaseinInventoriesIncrease/DecreaseinTradeandotherReceivablesIncrease/DecreaseinShortTermLoansandAdvances(Decrease)inShortBorrowings(Decrease)TradePayablesDecrease/(Increase)inotherCurrentAssetsDecreaseinShortTermProvisions(Decrease)inotherCurrentLiabilitiesIncreaseinCurrentInvestments

(12.36)(2747.64)

(18.09)(315.12)1795.42

7.50 (85.68)326.67

-

-1885.86385.01

(127.72)(1950.95)(10.57)(18.62)(18.72)(255.00)

Net Cash Flow from Operating Activities before tax and Exceptional Items (A)

(1049.30) (110.71)

TaxesPaid (109.55) (97.04)

Net cash generated from operating activities before exceptional items

(22.41) 843.25

ExceptionalItems - -

Net cash generated from operating activities (22.41) 843.25 CASH FLOW FROM INVESTING ACTIVITIES:IncreaseinMarginMoneyPurchaseofFixedAssetsSaleProceedsofFixedAssetsInterestreceivedDividendReceivedonInvestmentsPurchaseofInvestmentsSaleofInvestmentsLongTermLoansandAdvances

89.02 (328.37)

- 72.53

3.40 47.84

250.00 (115.66)

(36.52)(409.62)

55.8475.672.14

--

(36.87)Netcashflowfrominvestingactivities 18.76 (349.36)

CASH FLOW STATEMENT FOR THE YEAR ENDED 31st MARCH, 2018

(Standalone)


PARTICULARS For the Year ended 31st March 2018

For the Year ended 31st March 2017

CASH FLOW FROM FINANCING ACTIVITIES:11.39

(267.89)8.73

(235.31)OtherLongTermBorrowings(Net)InterestpaidNet cash flow from financing activities (256.50) (226.58)NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS

(260.15) 267.31

CashandcashequivalentsatthebeginningoftheyearCashandcashequivalentsattheendoftheyear

353.43 93.28

86.12 353.43






(Standalone)


1. Share Capital (₹ in Lakhs)Particulars As at 31st March, 2018 As at 31st March, 2017

Number Amount Number Amount AuthorisedEquitySharesofRs.10each 1,00,30,000 1,003.00 1,00,30,000 1,003.00

IssuedEquitySharesofRs.10each 75,50,000 755.00 75,50,000 755.00

Subscribed & fully Paid up

EquitySharesofRs.10each 75,50,000 755.00 75,50,000 755.00

Total 75,50,000 755.00 75,50,000 755.00 1.1 33,00,000 No. of Equity shares out of the total Equity Shares issued, subscribed & paid-up share capital were

allotted as Bonus shares in the last five years by capitalisation of Securities Premium A/c & General Reserve.

1.2 The reconciliation of the number of shares outstanding is set out below: (₹ in Lakhs)Particulars Equity Shares

SharesoutstandingatthebeginningoftheyearSharesIssuedduringtheyearSharesboughtbackduringtheyearAnyothermovement(pleasespecify)Sharesoutstandingattheendoftheyear

As at 31st March, 2018 As at 31st March, 2017 Number Amount Number Amount75,50,000 755.00 75,50,000 755.00

- - - -- - - -- - - -

75,50,000 755.00 75,50,000 755.00

1.3 Terms/rights attached to equity sharesTheCompanyhasonlyoneclassofequityshareshavingaparvalueofRs.10/-pershare.Eachholderofequityshares isentitled toonevoteper share. Thedividend ifproposedby theBoardofDirectors is subject to theapprovaloftheshareholdersintheensuingAnnualGeneralMeeting.Intheeventofliquidation,theliquidatormaydivideamongstthemembers,inpieceorkind,thewholeoranypartoftheassetsofthecompany,afterdistributionofallpreferentialamounts.

1.4 Out of Equity shares issued by the Company, shares held by its holding company, ultimate holding company and their subsidiaries/associates are as below:Particulars

Nature of Relationship

As at 31st March,2018

As at 31st

March,2017KomalInfotechPrivateLimited Holding

Company47,83,910 47,83,910

NOTES TO THE FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31st MARCH 2018

(Standalone)


1.5 Details of Shareholders holding more than 5% sharesName of Shareholder

Equity SharesAs at 31st March, 2018 As at 31st March, 2017

No. of Shares held

% of Holding No. of Shares held

% of Holding

KomalInfotechPrivateLimitedPritiR.ShahRakeshR.ShahShaishavR.Shah

4,783,9101,447,670636,090487,270

63.3619.178.426.45

4,783,9101,447,670636,090487,270

63.3619.178.426.45

As per records of company, including its register of shareholders/members and other declarations receivedfrom shareholders regardingbeneficial interest, theabove shareholding representsboth legalandbeneficialownershipofshares.

2. Reserves & Surplus (₹ in Lakhs)Particulars As at 31st March,

2018As at 31st March,

2017a. Securities Premium AccountAsperLastBalanceSheet 337.00 337.00b. General ReservesAsperLastBalanceSheet 168.23 168.23c. Surplus/Deficit in statement of Profit and LossAsperLastBalanceSheetAdd:ProfitFortheYearLess:ProposedDividendLess:TaxonProposedDividend

1,362.93 409.31

37.75 7.69

1,189.16219.2137.757.69

1,726.80 1,362.93

Total 2,232.03 1,868.16

3. Long-term Borrowings (₹ in Lakhs)Particulars Non-Current Current Maturities

As at 31st March, 2018




Secured Loans

201.54 180.57 241.34 138.83

Term loans Rupee Loan-FromOthers(AllaboveVehicleloansaresecuredagainstHypothecationofVehicles)

201.54 180.57 241.34 138.83Amountdisclosedunderthehead*OtherCurrentLiabilities(ReferNote-7) - - 241.34 138.83

Total 201.54 180.57 241.34 138.83* The Vehicle loans carries rate of interest ranging from 9.45% to 13.00% p.a.

(Standalone)


4. Other Long Term Liabilities (₹ in Lakhs)Particulars As at 31st March,


2017Trade PayableDuetoOthers 9.27 18.84

Total 9.27 18.84

5. Short-Term Borrowings (₹ in Lakhs)Particulars As at 31st March,


2017a) Secured LoansWorkingcapitalfacilitiesfromStateBankofIndiaWorkingcapitalfacilitiesfromDCBBankLimited(Secured against hypothecation of entire Stocks/Receivables & otherCurrentAssetsof theCompany (bothpresentand futureonpari passubasiswiththeBanks&PersonalGuaranteeofDirectors&theirrelatives)

650.72 243.18

128.46109.68

893.90 238.14 b) Unsecured Loans(i) Loans from Related Parties

KomalInfotechPvtLtdGSECAviationLtdKalpavrukshaEstateandFinancePvt.Ltd.KomalInfrastucturePvt.Ltd.

98.95 - - -

928.2210.6573.4219.88

98.95 1,032.17 (ii) Deposits Director’sDeposit 31.64 69.30

130.59 1,101.47 Total 1,024.49 1,339.61

6. Trade Payables (₹ in Lakhs)

Particulars As at 31st March, 2018


TradePayables-ForExpenses 296.05 208.35Others-ForPurchases 2,337.78 630.05

Total 2,633.83 838.40

7. Other Current Liabilities (₹ in Lakhs)Particulars As at 31st March,


2017

(a)Currentmaturitiesoflong-termdebt(ReferNote-3)(b)Unclaimeddividends(c)StatutoryDuesPayables(d)Trade/SecurityDeposit(e)AdvancefromCustomers(f)Provisionforbonus(g)OtherLiabilities

241.34 2.08

112.81 120.48 172.34

20.76 1.96

138.833.6141.6612.58

131.3816.120.93

Total 671.77 345.11

(Standalone)


8. Short-term Provisions (₹ in Lakhs)Particulars As at 31st March,


2017(a) Provision for Employee Benefits*Gratuity(Funded)LeaveEncashment(Unfunded)

1.80

14.07 5.5612.91

15.87 18.47 (b) Other ProvisionProposedDividendTaxonProposedDividendOthers

37.75 7.69

19.82

37.757.69

23.43 65.26 68.87

Total 81.13 87.34 * Long Term and Short Term classification is done based on actuarial valuation certificate.

9. Fixed Assets (₹ in Lakhs)Particulars Gross Block Accumulated Depreciation Net Block

Balance as at April

1, 2017

Additions/ (Disposals)

Deductions/ Adjustments

Balance as at March 31, 2018

Balance as at April 1,

2017

Depreciation charge for the

year

On disposals

Balance as at March 31,

2018



a. Tangible Assets Land-FreeholdBuildingsPlantandEquipmentFurnitureandFixturesVehiclesOfficeEquipmentComputersA.CMachines&Plant

20.931,106.03414.94350.44580.68455.48127.8255.69

-117.9045.7159.2923.2862.4911.468.24

--------

20.93 1,223.93

460.65 409.73 603.96 517.97 139.28

63.93

-239.68160.89247.17284.87397.17109.6944.20

-46.3734.6837.2198.9342.7812.587.24

--------

-286.05195.57284.38383.80439.95122.27

51.44

20.93 937.88 265.08 125.35 220.16

78.02 17.01 12.49

20.93866.35254.05103.27295.8158.3118.1311.49

Total 3,112.01 328.37 - 3,440.38 1,483.67 279.79 - 1,763.46 1,676.92 1,628.34

Previous Year 2,791.91 409.62 89.52 3,112.01 1,294.56 246.85 57.75 1,483.67 1,628.34 1,497.35

(Standalone)


10. Non-Current Investments (₹ in Lakhs)Particulars As at 31st

March, 2018As at 31st

March, 2017Trade Investments (Valued At Cost)Unquoted Investments:Non Traded Unquoted, fully paid-up In Wholly Owned Subsidiaries50000EquitySharesofGSECLogisticsLimitedofRs.10/-each(P.Y.50000SharesofRs.10/-Each)10000GSECGreenEnergyPrivateLimitedofRs.10/-each(P.Y.10000SharesofRs.10/-each)

5.00

1.00

5.00

1.00

6.00 6.00

Traded Quoted Investments: 73925EquitySharesfullypaidupofRe.1/-eachofAdaniEnterprisesLimited(P.Y.23925SharesofRe.1/-Each)23925EquitySharesfullypaidupofRs.10/-eachofAdaniTransmissionLimited(P.Y.23925SharesofRs.10/-Each)33789EquitySharesfullypaidupofRs.2/-eachofAdaniPortSpecialEconomicZoneLimited(P.Y.33789SharesofRs.2/-Each)44490EquitySharesfullypaidupofRs.10/-eachofAdaniPowerLimited(P.Y.44490SharesofRs.10/-Each)1000EquitySharesfullypaidupofRs.10/-eachofRelianceIndustriesLimited(P.Y.500SharesofRs.10/-each)6670EquitySharesfullypaidupofRs.10/-eachofTataSteelLimited(P.Y.5750SharesofRs.10/-each)10000EquitySharesfullypaidupofRs.2/-eachofAXISBankLimited(P.Y.10000SharesofRs.2/-Each)10000EquitySharesfullypaidupofRe.1/-eachofStateBankofIndiaLimited(P.Y.10000SharesofRe.1/-each)25000EquitySharesfullypaidupofRe.1/-eachofCadilaHealthcareLimited(P.Y.25000SharesofRe.1/-each)100000EquitySharesfullypaidupofRe.1/-eachofNeelaInfrastuctureLimited(P.Y.100000SharesofRe.1/-each)250EquitySharesfullypaidupofRs.10/-eachofGNFCLimited(P.Y.250SharesofRs.10/-each)100EquitySharesfullypaidupofRe.10/-eachofPANIndiaCorporationLimited(P.Y.100SharesofRs.10/-each)5EquitySharesfullypaidupofRe.1/-eachofPentamediaGraphicLimited(P.Y.5SharesofRe.1/-each)13700EquitySharesfullypaidupofRe.1/-eachofEnrichIndustriesLimited(P.Y.13700SharesofRe.1/-each)

107.17

-

-

26.42

3.88

29.50

40.36 - -

11.72

0.05

0.01

0.00

0.69

22.74

17.30

10.18

26.42

3.88

24.81

40.36

29.99

79.30

11.72

0.05

0.01

0.00

0.69

UNQUATED INVESTMENTS 667 Equity Shares of GITCO OF Rs.100 each(P.Y.667SharesofRs.100/-each)

0.67 0.67

Investments in Government Securities-Unquoted7YearsNationalSavingsCertificates(DepositedwithMamlatdarGandhidham)7YearsNationalSavingsCertificates(DepositedwithGovernerofKarwar)15000EquitySharesofKalupurCommercialCo.Op.BankLimitedofRs.25/-each(P.Y.15000SharessharesofRs.25/-each)

0.10

- 3.75

0.100.203.75

2 24.32 272.17

INVESTMENT IN PROPERTY

BLOCKD-SilverArcApartment 25.72 25.72

Total 256.04 303.89

AggregateamountofUnquotedInvestments 6.67 6.67

AggregateamountofQuotedInvestments(MarketValue) 244.55 414.27

(Standalone)


11. Long Term Loans & Advances (Unsecured,Considered Good) (₹ in Lakhs)



CapitalAdvanceDepositandBalancewithGovernmentAuthoritiesDepositwithOthersAdvanceIncomeTax(NetofProvisions)OtherLoansandAdvances

41.00 3.81

19.17 12.74

247.56

30.004.1120.2242.40111.90

Total 324.28 208.63 AdvanceincometaxandprovisionsfortaxationhavebeendisclosedonnetbasiswherealegalrighttosetoffexistsandtheCompanyintendstosettletheassetsandliabilityonanetbasis.

12. Current Investments (₹ in Lakhs)



Investment in Mutual FundPrincipalMutualFundSBIDuelAdvantageFund-SeriesXIX

-5.00

250.005.00

Total 5.00 255.00

13. Inventories (At Cost or net Realisable Value whichever is lower) (₹ in Lakhs)Particulars As at 31st


March, 2017TradedGoods 22.37 10.02

Total 22.37 10.02

14. Trade Receivables (₹ in Lakhs)Particulars As at 31st


March, 2017Unsecured- Considered goodOutstandingforperiodexceedingsixmonthsOtherReceivables

132.25 3,351.08

147.13710.45

3,483.33 857.58 Unsecured, considered doubtfulOutstandingforperiodexceedingsixmonthsOtherReceivables

--

--

Less:Provisionfordoubtfuldebts - -Total 3,483.33 857.58

15. Cash & Bank Balance (₹ in Lakhs)Particulars As at 31st


March, 2017(I) Cash & Cash EquivalentsCashOnHandBalanceswithBanks-InCurrentAccounts

5.20

88.08

3.36

350.07(II) Other Bank Balance-InFixedDepositAccountsasMarginMoneyagainstBankGuarantee(Maturitymorethan3Monthsbutlessthan12Months) 578.19 665.69-UnpaidDividendAccounts 2.07 3.59

Total 673.54 1,022.71

(Standalone)


16. Short-term Loans and Advances (Unsecured and Considered Good) (₹ in Lakhs)



LoansandAdvancestoRelatedParties(Int.FreeLoan)LoanstoEmployeesPrepaidExpensesBalances with Government AuthoritiesGSTCreditReceivableServiceTaxCreditReceivableSalesTaxCreditReceivableOtherLoansandAdvances

518.679.47

35.08

9.27-

25.00471.03

581.308.5286.04

-50.8025.00298.77

Total 1068.52 1050.43

17. Other Current Assets (Unsecured and Considered Good) (₹ in Lakhs)Particulars As at 31st


March, 2017InterestaccruedbutNotDueInvestmentinSilverCoins

8.270.61

15.770.61

Total 8.88 16.38

18. Other Operating Revenues (₹ in Lakhs)Particulars 2017-18 2016-17AuctionSaleCommissionIncomeConsultancyincome

--

252.00

0.51150.0052.00

Total 252.00 202.51

19. Other Income (₹ in Lakhs)Particulars 2017-18 2016-17Interest Income -InterestonBankDeposits-InterestonI.T.Refund-InterestonEntryTaxTaxRefundOther non-operating income :DividendIncomeFromNon-CurrentProfitonSaleofMutualFundProfitonSaleofFixedAssetsProfitonsaleofSharesForeignExchangeDifferenceBadDebtsRecoverAccountExcessProvisionforEarlierYearDutyDrawbackMisc.IncomeRateDifferenceKasar/DiscountOtherIncomeRentIncome

72.537.23

-

3.4055.43

-221.44

0.263.25

11.18-

25.290.57

21.60-

2.02

75.67-

17.13

2.13-

24.07-

5.554.751.870.472.060.250.7727.284.24

Total 424.20 166.24

(Standalone)


20. Change in Inventories of Finished Goods (₹ in Lakhs)

Particulars 2017-18 2016-17Inventories (at close)Finishedgoods/StockintradeInventories( at commencement)Finishedgoods/Stockintrade

22.37

10.02

10.02

10.02Total (12.35) 0.00

21. Employee Benefits (₹ in Lakhs)

Particulars 2017-18 2016-17(a)Salariesandincentives(b)RemunerationtoDirectors(c)Contributionsto-

(i)Providentandotherfund(ii)Gratuityfund

(d)Staffwelfareexpenses

266.85 97.15

12.84

- 34.15

231.58101.14

12.505.7819.08

Total 410.99 370.08

22. Finance Cost (₹ in Lakhs)

Particulars 2017-18 2016-17InterestExpenseBankChargesOtherBorrowingCosts

161.333.01

103.55

148.903.6482.77

Total 267.89 235.31

(Standalone)


23. Other Expenses (₹ in Lakhs)

Particulars 2017-18 2016-17RentandLicenseFees 294.10 318.06LandLeaseRentforGuestHouse 8.01 7.45RatesandTaxes 3.15 3.15Insurance 12.89 34.17Employer/EmployeeInsurance 171.74 162.90Electricity 59.79 57.57StationeryandPrinting 10.44 7.15PostageandTelephone 15.40 15.39Repair&MaintenanceCharges-Building 478.92 234.23-Others 5.30 2.23AuditorsRemuneration-AuditFee 0.85 1.44-TaxAuditFee 0.15 0.17ProfessionalFeesandLegalExpenses 42.84 55.16DetentionCharges 132.17 -Vehicle&ConveyanceExpenses 25.93 23.72Advertisement&PublicityExpenses 11.33 115.46TravellingExpenses 135.10 95.81GuestHouseExpenses 15.29 15.79MiscellaneousExpenses 83.34 64.42Directorfees&travelling 1.90 2.15SalesPromotion 188.63 39.41SecurityExpenses 55.15 45.58Royalty 536.36 436.14PackingMaterials 10.38 6.10Donation 12.34 18.72BadDebtsWrittenOff 41.62 334.82Misc.Dr/Cr/Writtenoff 12.31 1.76CommissionandAgencyCommssion 0.73 26.15DeputationChargestoCustomDepartment - 34.00CargoHandlingExpenses 46.91 24.21PriorPeriodExpenses 1.67 -RateDifferenceExpenses 112.50 -AdvancesWrittenOff 67.97 0.11

Total 2,595.21 2,183.42

(Standalone)


NOTES ON FINANCIAL STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2018

The Company and Nature of its Operations:

GSECLimited,(CIN:U52100GJ1965PLC001347)whichwasaGovernmentCompanyformerlyknownasGujaratStateExportCorporationLimited,isprimarilyengagedintheactivitiesofExport-Importfacilitiesandtradingbusiness.TheCompany is custodian of Air CargoComplexes at Ahmedabad, Indore, Raipur and Visakhapatnam. At Raipur itoperate theAirCargoComplex under commonuser domesticair cargo terminal (CUDCT).AtVisakhapatnam, itoperatesunderanOperationsandMaintenanceArrangementwithAndhraPradeshTradePromotionCorporationLimited(APTPC).TheCompanyalsodealsintradingofvariousincludingbutnotlimitedtoBitumen,Dyes,Chemicals,Casteroil,TextileandPetroleumProductsetc.

24. Significant Accounting Policies:

1. Basis for preparations of financial statements:The financial statements are prepared in accordance with the generally accepted accounting principles(“GAAP”)inIndiaunderthehistoricalcostconventiononanaccrualbasisandareinconformitywithmandatoryaccountingstandards,asprescribedundertheSection133oftheCompaniesAct,2013(Act)readwithRule7oftheCompanies(Accounts)Rules,2014.

AllassetsandliabilitieshavebeenclassifiedascurrentornoncurrentaspertheCompany’snormaloperatingcycleandothercriteriasetoutintheScheduleIIItotheCompaniesAct,2013.

2. Method of Accounting:ThebooksofaccountsaremaintainedonaccrualbasisexceptincomefromDemurrageandHandlingChargesonunclearedcargoatAirCargoComplex,whichareaccountedonCashBasis.

3. Fixed Assets:FixedAssetsarestatedatcostofacquisitionorconstruction.Costincludestaxes,dutiesandotheridentifiabledirectexpenses.

4. Depreciation:

(a)DepreciationontangibleassetsisprovidedonwrittendownvaluemethodovertheusefullivesoftheassetsasprescribedinScheduleIIoftheCompaniesAct,2013.

Wherevertheuseful livesoftheassetsarementionedinSchedule-II isoveronorbefore31-03-2014fromtheiracquisitionyear,afterretaining5%ofthecostvalueasrealizablevalue.TheexcessWrittendownvalueofsuchAssetsarechargedtoProfit&LossAccount.

Wherethedetailsoftheassetsacquiredpriorto01-04-2004werenotavailable,theyearofacquisitionofsuchAssetsaretakenacertifiedbyManagement.

(b)Depreciationisprovidedonpro-ratabasisfromthedateofadditiontofixedassetsduringtheyear.

5. Investments:LongterminvestmentisstatedatCostofAcquisition.ProvisionfordiminutioninthevalueofLongTermInvestmentismadeonlyifsuchdeclineisotherthantemporary.

CurrentinvestmentarecarriedatthelowerofcostandQuoted/Fairvalue.

6. InventoriesInventoriesarevaluedatcostormarketvaluewhicheverislower.

7. Sales:Revenue fromSaleofProducts is recognizedondispatchorappropriationofgoods inaccordancewith thetermsofsalesanditsexclusiveofVATTaxandotherdutiesandcharges.

(Standalone)


8. Taxes on income:Currenttaxisdeterminedastheamountoftaxpayableinrespectoftaxableincomefortheperiod.Deferredtaxisrecognizedontimingdifference,betweentaxableincomeandaccountingincomethatoriginateinoneperiodandarecapableofreversalinoneormoresubsequentperiods.DeferredTaxAssetisrecognizedonlytothatextentthereisareasonablecertaintythatsufficientfuturetaxableincomewillbeavailableagainstwhichsuchdeferredassetscanberealized.Thecarryingamountofdeferredtaxisreviewedateachbalancesheetdate.

9. Foreign Currency Transaction:Transactionsinforeigncurrenciesarerecordedattheexchangeratesprevailingonthedateofthetransactions.Transactionsoutstandingattheyear-endaretranslatedatexchangeratesprevailingattheyear-endandthelosssodeterminedandalsotherealizedexchangegains/lossesarerecognizedintheProfit&LossAccount.

10. Retirement Benefits:GratuitywhichisdefinedbenefitsisaccruedbasedonactuarialvaluationasatBalanceSheetdate.ThepresentvalueoftheobligationisdeterminedusingtheProjectedUnitCreditmethod.ThecompanyhastakenapolicyunderGroupGratuitySchemeoftheLifeInsuranceCorporationofIndia.

LeaveEncashmentSalarywhichisdefinedbenefitisaccruedandprovidedforbasedonactuarialvaluationasatBalanceSheetdateattheendofthefinancialyear.

Retirementbenefits in the formofprovident fundwhether inpursuanceof laworotherwisewhich isdefinedcontributionschemeisaccountedontheaccrualbasisandchargedtoprofitandlossaccount.

25. Other Notes Forming Part Of Accounts:

(i)DetailsofPaymentstoAuditor(₹ in Lakhs)Particulars 2017-18 2016-17

a.Auditor 1.00 1.01

b.ForTaxationMatters - -

c.Certification(IncludedFeesandLegalExpenses.) - -Total 1.00 1.01

(ii) Salariesandwagesof₹ 97.15 Lakhs (PreviousYear₹ 101.14 Lakhs)being the remuneration toExecutiveDirectors’ of theCompany. The said remuneration is not in excess of the limits laiddownu/s 197 readwithScheduleVoftheCompaniesAct,2013.

(iii)Balanceofdebtors,creditors,loansandadvancesaresubjecttoconfirmationbythepartiesconcernedandadjustment,ifany.

(iv)ContingentLiabilitiesnotprovidedfor:

a. ClaimsagainstthecompanynotacknowledgedasdebtofRs.61.86Lakhs(PreviousYearRs.92.86Lakhs)b. BankGuaranteeissuedtoCustomsDepartment–AhmedabadofRs.2974Lakhs(PreviousYearRs.2974Lakhs)c. HigherdemandofRs.34.76LakhsincludingInterestfornonpaymentofthedemandraisedbyTheAirportDirector,IndoreforHangerRentfortheperiodfrom01.04.2008to20.06.2013,astheCompanyhassoughttoreversethisamountonthebasisofsimilarearlierreversal.Theagreementforrenewalofaircargocomplex licensewhichwasdueon 23.11.2011 is also not executed,pendingResolutionof this dispute.HowevertheworkatAirCargoComplex–IndorecontinuesandCompanyhasdepositedRs.Lakhsin2013-14underprotest.d. Demandraisedin2012-13byDirectorateofrevenueintelligenceforshortpaymentofCustomDutyforImportofBitumenatvariousportsofRs.310.26Lakhs.Asthecustomdepartmenthasadoptedthevaluedeclaredforimportsislowerthanthemarketvalue.Thecompanyhasobjectedtheabovedemandraisedinshowcausenotice,hencenoprovisionhasbeenmadeinthebooksofaccounts.

(Standalone)


e. Demandraisedin2012-13byTheAsst.CommissionerofCommercialTax,FlyingSquad–Ahmedabadof Rs. 887.39 Lakhs for notallowing input credit ofVATon thepurchasesofDrinkingWater Plant/WaterTreatmentPlantfortheyear2007-08and2008-09,asthesupplierfromwhomthepurchaseshavebeenmadehavenotpaidtheVattaxcollectedfromthecompany.Asthecompanyhaspreferredanappealbeforehigherauthoritiesnoprovisionintheaccounthavebeenmade.However,theCompanyhasdepositedRs.25Lakhsunderprotest.

(v)DisclosurespursuanttoAccountingStandard(AS)15(Revised)

Employees Benefits:- DefinedBenefitsPlansasperActuarialValuationonMarch31,2018.(₹ In Lakhs)Sr. No.

Particulars Gratuity Leave Encashment31.03.2018 31.03.2017 31.03.2018 31.03.2017

(1) The amounts recognized in the Balance Sheet as at the end of the year• PresentValueofFundedObligation• FairValueofPlanAssets• PresentValueofUnfundedObligation• Net(Assets)/liability

(53.13)51.33

-(1.80)

(51.90)46.34

-(5.56)

--

14.0814.08

--

(12.91)(12.91)

(2) The amounts recognized in Profit and Loss Account for the year• CurrentServiceCost• InterestCost• ExpectedReturnonPlanAssets• Actuarial(Gains)/Losses• ActualReturnonPlanAssets• TotalExpenses

5.790.41

-(11.97)

5.22(0.55)

4.680.28

-2.87

-7.38

1.650.94

-(1.42)

--

1.310.90

-1.68

--

(3) The Changes in Obligations during the year• PresentvalueofDefinedbenefitObligation

atthebeginningoftheyear• CurrentServiceCost• InterestCost• Actuarial(Gains)/Losses• BenefitPayments• PastServiceCost• PresentvalueofDefinedBenefitObligation

attheendoftheyear

51.90

5.793.78

(12.04)(1.53)

5.2253.12

43.82

4.683.492.70

(2.79)-

51.90

12.91

1.650.94

(1.42)0.00

-14.08

11.26

1.310.901.68

(2.24)-

12.91

(4) The changes in Plan Assets during the year• PlanAssetsatthebeginningoftheyear• Actuarialgainsand(losses)• ContributionbyEmployer• ActualBenefitPaid• Planassetsattheendoftheyear• ActualreturnonPlanAssets

46.34(0.07)

2.37(0.69)51.33

3.38

40.31(0.17)5.78

(2.79)46.343.22

------

------

Sr. No.

Particulars Gratuity (Funded)

Leave Encashment(Unfunded)

(5) Actuarial Assumption:DiscountRateTurnoverRateMortalitySalaryEscalationRateRetirementage

7.83%-

7%58Years

7.83%-

7%58Years

(Standalone)


(vii)RelatedPartyDisclosure:AsperAccountingStandard18(AS-18)RelatedPartydisclosureissuedbyICAIthedisclosureoftransactionwithrelatedpartiesasdefinedinAS-18aregivenbelow:-

A. List of Related Parties & Relationship:

Nature of Relationship Name of Related PartyHolding Company KomalInfotechPrivateLimitedSubsidiary Company GSECLogisticsLimited

GSECGreenEnergyPrivateLimitedFellow Subsidiary Company GSECAviationLimited

KomalInfraventuresPrivateLimitedKey Management Personnel RakeshRamanlalShah

SamirHanskumarMankadShaishavRakeshkumarShahRajiShaishavShah

Relative of Key Management Personnel PritiRakeshShahOther Related parties (Enterprise owned or significantly influenced by Key Management personnel)

GSECInfrastructurePrivateLimitedKalpavrukshaEstateAndFinancePrivateLimitedKeshavLandDevelopersPrivateLimitedPrerakCapitalServicesPrivateLimitedVishwaImportsLLP

B. Transaction during the year with related Parties: (Excluding Reimbursement): (₹ in Lakhs)Nature of Transaction Holding

CompanySubsidiary Company Fellow

Subsidiary Sister

Company

Other Related parties

Relative of

Director

Key Management Personnel

Komal Infotech Pvt.

Limited

GSEC Logistics

Ltd

GSEC Green Energy Pvt.

Limited

GSEC Aviation Limited

Kalpavruksha Estate And

Finance Private Limited

Priti R. Shah

Rakesh R. Shah

Shaishav R. Shah

Samir H. Mankad

Raji S. Shah

RentPaid - - - - - 24.96 - 3.10 - -

InterestPaid 47.04 - - 1.72 22.32 - 8.81 0.17 - -InterestReceived - - - - - - - - - -Remuneration - - - - - - 36.00 22.85 29.76 8.54

AdvanceOutstanding (98.95) 374.39 144.29 304.66 19.64 - (23.08) (8.56) - -LoanTaken 500.00 - - 205.00 2740.00 - 589.00 14.33 - -LoanGranted - 0.72 0.42 - - - - - - -LoanRepaid 1371.60 - - 520.66 28.53 - 640.80 8.27 - -LoanRepaidby - - 53.50 - - - - - - -

(viii) ThenetDeferredTax(Liabilities)/AssetsasonMarch31,2018amountingto₹(2.10)Lakhs(2016-17₹10.12Lakhs)hasbeenarrivedatasfollows. (₹ In Lakhs)

Deferred Tax Assets arising from 2017-18 2016-17ExpenseschargedinthefinancialStatementbutallowablefortaxpurposewhenpaidinfutureyears

Depreciation 8.20 3.23Gratuity&LeaveEncashment 0.39 1.42BonusProvision 1.53 1.20Others 0.00 (7.95)Net deferred Tax Assets/(Liability) 10.12 (2.10)

ThetaximpactfortheabovepurposehasbeenarrivedbyapplyingataxRateof33.063%beingtheprevailingtaxrateforIndiancompaniesundertheIncomeTaxAct,1961.Basedonthemanagement’sestimate;thecompanywouldhavesufficientTaxableIncomeinfuturetoutilizecreditavailableundertheIncomeTaxAct,1961.

(Standalone)


(ix) EarningperShare(EPS):(₹ In Lakhs) Particulars 2017-18 2016-17Netprofit/(Loss)afterTax 409.31 219.21NumberofEquityShare 7550000 7550000NominalValueofEquityShare 10.00 10.00Basic&DilutedEarningPerShare(In₹) 5.42 2.90

(x) OtherinformationrequiredintermsofClause5(viii)ofPart-IIofScheduleIIItotheCompaniesAct,2013.

Particulars (₹ In Lakhs)2017-18 2016-17

a C.I.F.valueofimportsof:TradingGoods - 1107.35Spareparts - -CapitalGoods - 137.80

b ExpenditureinForeignCurrencyOnForeignTravel 63.56 33.23ExpenditureinForeignCurrency:onpurchaseofcapitalitems - -

c Consumptionof:i.RawMaterials - -ii.StoreandSparesParts - -

d RemittanceinForeignCurrencyOnaccountsofAgencyCommission - -e EarninginForeignExchange(ValueofGoodsExported) - -

(xi) AspertherequirementofScheduleIIIoftheCompaniesAct,2013,theamountsoffinancialstatementshavebeenroundedofftothenearestlakhsofRupees.Hence,thedifferencesintotalandsub-totalofsomeitemsareinevitable.

26. Dividend Declaration for the year 2017-18TheBoardhasrecommendeddividendof₹0.50/-PaisaPerEquityshareof₹10/-eachi.e.5%(P.Y.₹0.50/-PaisaperEquitysharei.e.5%)fortheyearended31stMarch,2018subjecttotheapprovaloftheshareholdersattheAnnualGeneralMeeting.

InpursuancetoamendedCompanies(AccountingStandards)Rules,2016effectivefinancialyear2017-18andrevisedAccountingStandard-4on“ContingenciesandEventsoccurringafterBalanceSheetDate”,theproposeddividendof₹37.75Lakhsandtaxesof₹7.69Lakhsthereonarenotrecognizedasliability intheannualaccountsofthefinancialyearendingMarch,312018.

27. Segment Information:BasedontheguidingprinciplesgiveninAccountingStandardon‘SegmentReporting’(AS–17)asnotifiedbyCompaniesAccountingStandardsRules,2008,thecompany’sprimarybusinesssegmentsareAirportServiceandTradingActivitieswhichhavegottheirownrespectiveriskandreturnprofiles.

(Standalone)


Financialinformationabouttheprimarybusinesssegmentfortheyearended31stMarch,2018(₹ In Lakhs)

Cargo Handling Service

Trading Activities Total

2017-18 2016-17 2017-18 2016-17 2017-18 2016-17A. Revenue Services/SalesRevenue 3573.38 2975.17 34394.04 33465.68 37967.42 36440.85IntersegmentRevenue - - - - - -TotalRevenue 3573.38 2975.17 34394.04 33465.68 37967.42 36440.85 B. Result

SegmentResultProfit/Loss 3573.38 2975.17 99.25 228.29 3672.63 3203.46

OtherIncomeexcludingInterestIncome 344.44 73.44

OtherUnallocableExpenses 3286.00 2800.35

OperatingProfit 731.07 476.55

InterestIncome 79.76 92.80InterestExpenses 267.89 235.31ProfitBeforeTax 542.94 334.04

ProvisionForIncomeTax(includingDeferredTax) 133.63 114.83

Net Profit 409.31 219.21

C. Other Information

CapitalEmployed

SegmentAssets 2487.89 2378.98 4860.15 2495.16 7348.04 4874.14

SegmentLiabilities 395.23 269.62 2548.59 1038.40 2943.82 1308.02

OtherUnallocableCorporateAssetsandLiabilities - - (1371.73) (942.96)

Total Capital Employed 3032.49 2623.16

CapitalAssets/ExpenditureincludingCapitalWork-in-ProgressincurredduringtheYear 242.61 340.50 85.76 69.12 328.37 409.62

OtherUnallocableCapitalExpenditures - - - - - -

Total 242.61 340.50 85.76 69.12 328.37 409.62

D. Segment Depreciation 200.28 175.47 79.51 71.38 279.79 246.85

E. Non Cash Expenses other than Depreciation 0.00 0.00 41.62 334.82 41.62 334.82

Previousyear’sfigureshavebeenregrouped/reclassifiedwhenevernecessarytocorrespondwiththecurrentyear’sclassification/disclosure. As per our attached report of even date






(Consolidated)

To the Members of GSEC Limited

Report on the Consolidated Financial Statements We have audited the accompanying consolidated financial statements of GSEC Limited (hereinafter referred toas“theHoldingCompany”)anditssubsidiary(Theholdingcompanyanditssubsidiarytogetherreferredtoas“theGroup”)comprisingtheConsolidatedBalanceSheetasatMarch31,2018,theConsolidatedStatementofProfitandLossandtheConsolidatedCashFlowStatementfortheyearthenended,andasummaryofsignificantaccountingpoliciesandotherexplanatoryinformation.(hereinafterreferredtoas‘theconsolidatedfinancialstatements’)

Management’s Responsibility for the Consolidated Financial Statements

TheCompany’sBoardofDirectorsisresponsibleformattersstatedinsection134(5)ofcompaniesAct,2013(”theact”)thepreparationoftheseConsolidatedFinancialStatementsthatgiveatrueandfairviewofthefinancialposition,financial performance and cash flows of the Company in accordance with the accounting principles generallyaccepted in India, including theAccountingStandards specifiedunderSection133of theAct readwith rule7ofcompanies(accounts)Rules,2014.Thisresponsibility includesthemaintenanceofadequateaccountingrecords inaccordancewith theprovisionof theAct for safeguardingof theassetsof thecompanyand forpreventinganddetectingthefraudsandother irregularities ,selectionandapplicationofappropriateaccountingpolicies,makingjudgmentsandestimatesthatarereasonableandprudentanddesign,implementationandmaintenanceofinternalfinancial control, thatwereoperatingeffectively for ensuring theaccuracyandcompletenessof theaccountingrecords,relevanttothepreparationandpresentationoftheConsolidatedFinancialStatementsthatgiveatrueandfairviewandarefreefrommaterialmisstatementwhetherduetofraudorerror.


OurresponsibilityistoexpressanopinionontheseConsolidatedFinancialStatementsbasedonouraudit.

WehavetakenintoaccounttheprovisionsoftheAct,theaccountingandauditingstandardsandmatterswhicharerequiredtobeincludedintheauditreportundertheprovisionsoftheActandtheRulesmadethereunder.

WeconductedourauditinaccordancewiththeStandardsonAuditingspecifiedundersection143(10)oftheAct.ThoseStandardsrequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhethertheConsolidatedFinancialStatementsarefreefrommaterialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in theConsolidated Financial Statements. The procedures selected depend on the auditor’s judgment, including theassessmentoftherisksofmaterialmisstatementoftheConsolidatedFinancialStatements,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorconsidersinternalfinancialcontrolrelevanttotheCompany’spreparationof theConsolidatedFinancialStatementsthatgivetrueandfairview inordertodesignauditproceduresthatareappropriateinthecircumstances.AnauditalsoincludesevaluatingtheappropriatenessofaccountingpoliciesusedandthereasonablenessoftheaccountingestimatesmadebyCompany’sDirectors,aswellasevaluatingtheoverallpresentationoftheConsolidatedFinancialStatements.

WebelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinionontheConsolidatedFinancialStatements.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaidConsolidatedFinancialStatements,givetheinformationrequiredbytheActinthemannersorequiredandgiveatrueandfairviewinconformitywiththeaccountingprinciplesgenerallyacceptedinIndia;

a. inthecaseoftheConsolidatedBalanceSheet,ofthestateofaffairsoftheCompanyasatMarch31,2018;b. inthecaseoftheConsolidatedStatementofProfitandLoss,oftheprofitfortheyearendedonthatdate;and

INDEPENDENT AUDITOR’S REPORT

(Consolidated)


c. inthecaseoftheConsolidatedCashFlowStatement,ofthecashflowsoftheCompanyfortheyearendedonthatdate.

Report on other Legal and Regulatory Requirements

1.Asrequiredbysection143(3)oftheAct,wereportthat:

a)Wehavesoughtandobtainedalltheinformationandexplanationswhichtothebestofourknowledgeandbeliefwerenecessaryforthepurposesofourauditoftheaforesaidconsolidatedfinancialstatements;

b)Inouropinionproperbooksofaccountasrequiredbylawmaintainedbyholdingcompany,itssubsidiaryincludedin thegroup including relevant records relating topreparationof theaforesaidconsolidated financial statementshavebeenkeptsofarasitappearsfromourexaminationofthosebooksandrecordsoftheHoldingCompanyandsubsidiary.

c) ConsolidatedBalanceSheet, theConsolidatedStatementofProfitandLossandtheConsolidatedCashFlowStatementdealtwithbythisreportareinagreementwiththerelevantbooksofaccountmaintainedbytheHoldingCompany,itssubsidiaryincludedintheGroup,includingrelevantrecordsrelatingtothepreparationoftheconsolidatedfinancialstatements.

d) Inouropinion,theaforesaidconsolidatedfinancialstatementscomplywiththeIndianAccountingStandardsprescribedunder Section133of theAct, readwith theCompanies (IndianAccounting Standards)Rules, 2015,asamended;

e)OnthebasisofthewrittenrepresentationsreceivedfromthedirectorsoftheHoldingCompanyasonMarch31,2018takenonrecordbytheBoardofDirectorsoftheHoldingCompanyandreportsofthestatutoryauditorsof itssubsidiary,noneofthedirectorsoftheGroupcompany,isdisqualifiedasonMarch31,2018frombeingappointedasadirectorintermsofSection164(2)oftheAct.

f)WithrespecttotheadequacyoftheinternalfinancialcontrolsoverfinancialreportingoftheholdingCompanyandthesubsidiariesincorporatedinIndiaandtheoperatingeffectivenessofsuchcontrols,refertoourseparatereportin“Annexure A”;and

g)WithrespecttotheothermatterstobeincludedintheAuditor’sReportinaccordancewithRule11oftheCompanies(AuditandAuditors)Rules,2014,inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous:

(i) Thecompanydoesnothaveanypendinglitigationswhichwouldimpactonthefinancialstatementsofthecompany.

(ii) TheCompanydidnothaveanylong-termcontracts includingderivativecontractsforwhichtherewereanymaterialforeseeablelosses.

(iii) Therehasbeennodelayintransferringamounts,requiredtobetransferred,totheInvestorEducationandProtectionFundbytheCompany.





(Consolidated)


ANNEXURE ‘A’ TO THE INDEPENDENT AUDITOR’S REPORT

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of theCompanies Act, 2013 (“the Act”)

Inconjunctionwithourauditof theconsolidatedfinancial statementsof theHoldingCompanyasofand for theyearendedMarch31,2018,wehaveauditedtheinternalfinancialcontrolsoverfinancialreportingofGSECLimited(hereinafterreferredtoas“theHoldingCompany”),itssubsidiarycompanywhichareincorporatedinIndia,asofthatdate.

Management’s Responsibility for Internal Financial Controls

The Respective Management of The Holding Company and its subsidiaries is responsible for establishing andmaintaining internal financialcontrolsbasedon the internalcontroloverfinancial reportingcriteriaestablishedbytheCompanyconsidering theessential components of internal control stated in theGuidanceNoteonAudit ofInternalFinancialControlsoverFinancialReportingissuedbytheInstituteofCharteredAccountantsofIndia(‘ICAI’).These responsibilities includethedesign, implementationandmaintenanceofadequate internalfinancialcontrolsthatwereoperatingeffectivelyforensuringtheorderlyandefficientconductofitsbusiness,includingadherencetocompany’spolicies,thesafeguardingofitsassets,thepreventionanddetectionoffraudsanderrors,theaccuracyandcompletenessoftheaccountingrecords,andthetimelypreparationofreliablefinancialinformation,asrequiredundertheCompaniesAct,2013.


OurresponsibilityistoexpressanopinionontheCompany’sinternalfinancialcontrolsoverfinancialreportingbasedonouraudit.WeconductedourauditinaccordancewiththeGuidanceNoteonAuditofInternalFinancialControlsoverFinancialReporting(the“GuidanceNote”)andtheStandardsonAuditing,issuedbyICAIanddeemedtobeprescribedundersection143(10)oftheCompaniesAct,2013,totheextentapplicabletoanauditofinternalfinancialcontrols, bothapplicable toanaudit of Internal FinancialControlsand,both issuedby the InstituteofCharteredAccountantsofIndia.ThoseStandardsandtheGuidanceNoterequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetheradequateinternalfinancialcontrolsoverfinancialreportingwasestablishedandmaintainedandifsuchcontrolsoperatedeffectivelyinallmaterialrespects.

Ouraudit involvesperformingprocedures toobtainauditevidenceabout theadequacyof the internal financialcontrols system over financial reporting and their operating effectiveness. Our audit of internal financial controlsoverfinancial reporting includedobtaininganunderstandingof internalfinancialcontrolsoverfinancial reporting,assessingtheriskthatamaterialweaknessexists,andtestingandevaluatingthedesignandoperatingeffectivenessofinternalcontrolbasedontheassessedrisk.Theproceduresselecteddependontheauditor’sjudgment,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.

WebelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinionontheCompany’sinternalfinancialcontrolssystemoverfinancialreporting.

Meaning of Internal Financial Controls over Financial Reporting

Acompany’s internal financialcontroloverfinancial reporting isaprocessdesigned toprovide reasonableassur-anceregardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewithgenerallyacceptedaccountingprinciples.Acompany’sinternalfinancialcontroloverfinancialreportingincludesthosepoliciesandproceduresthat

(1)pertaintothemaintenanceofrecordsthat,inreasonabledetail,accuratelyandfairlyreflectthetransactionsanddispositionsoftheassetsofthecompany;(2)providereasonableassurancethattransactionsarerecordedasnecessarytopermitpreparationoffinancialstatementsinaccordancewithgenerallyacceptedaccountingprinciples,andthatreceiptsandexpendituresofthecompanyarebeingmadeonlyinaccordancewithauthorisationsofmanagementanddirectorsof thecompany;and(3)providereasonableassuranceregardingpreventionor timelydetectionofunauthorisedacquisition,use,ordispositionofthecompany’sassetsthatcouldhaveamaterialeffectonthefinancialstatements.

(Consolidated)


Inherent Limitations of Internal Financial Controls Over Financial Reporting

Becauseof the inherent limitationsof internal financialcontrolsover financial reporting, including thepossibilityofcollusionorimpropermanagementoverrideofcontrols,materialmisstatementsduetoerrororfraudmayoccurandnotbedetected.Also,projectionsofanyevaluationoftheinternalfinancialcontrolsoverfinancialreportingtofutureperiodsare subject to the risk that the internal financialcontroloverfinancial reportingmaybecome inadequatebecauseofchangesinconditions,orthatthedegreeofcompliancewiththepoliciesorproceduresmaydeteriorate.

Opinion

Inouropinion,theHoldingCompanyanditssubsidiaries,whichareincorporatedinIndiahave,inallmaterialrespects,anadequateinternalfinancialcontrolssystemoverfinancialreportingandsuchinternalfinancialcontrolsoverfinancialreportingwereoperatingeffectivelyasat31March2018,basedontheinternalcontroloverfinancialreportingcriteriaestablishedbytheCompanyconsideringtheessentialcomponentsofinternalcontrolstatedintheGuidanceNoteonAuditofInternalFinancialControlsOverFinancialReportingissuedbytheInstituteofCharteredAccountantsofIndia.






(Consolidated)

(₹ in Lakhs)Particulars Notes As at 31st March,2018 As at 31st March,2017

I. EQUITY AND LIABILITIES1 Shareholders’ Funds

(a)ShareCapital(b)ReservesandSurplus

12

755.002149.32

755.001773.17

2 Share application money pending allotment - -

3 Non-current liabilities(a)Long-termBorrowings(b)DeferredTaxLiabilities(Net)(c)OtherLongtermLiabilities(d)Long-TermProvisions

3

4

489.99-

9.27-

329.74-

18.84-

4 Current liabilities(a)Short-TermBorrowings(b)TradePayables(c)OtherCurrentLiabilities(d)Short-TermProvisions

5678

1481.752633.82

684.0981.13

1422.48849.90349.9887.32

TOTAL 8284.38 5586.43II. ASSETS1 Non-Current Assets

(a)FixedAssets(i)TangibleAssets 9 2187.13 2196.23

(b)Non-CurrentInvestments(c)DeferredTaxAssets(Net)(d)Long-TermLoansandAdvances

10

11

250.1990.18

344.33

298.0480.06238.16

2 Current assets(a)CurrentInvestments(b)Inventories(c)TradeReceivables(d)CashandCashEquivalents(e)Short-TermLoansandAdvances(f)OtherCurrentAssets

121314151617

5.0022.37

3617.17680.25

1077.819.93

255.0010.02986.581025.52479.4017.42

TOTAL 8284.38 5586.43SignificantAccountingPolicies&NotesonFinancialStatements 24






BALANCE SHEET AS AT 31st MARCH,2018

(Consolidated)


(₹ in Lakhs)Particulars Notes 2017-18 2016-17

I. Revenue From OperationsSaleofTradingGoodsSaleofServicesOtherOperatingRevenuesLess:Exciseduty

18

34142.043573.38

252.00

-

33260.172975.17202.51

-

II. Other Income 19 449.34 166.24

III. Total Revenue (I + II) 38416.76 36604.10IV. Expenses:

CostofTradingGoodsSoldChangesinInventoriesofStock-inTradeEmployeeBenefitsExpenseFinanceCostsDepreciationandAmortizationExpenseOtherexpenses

202122

23

34307.14(12.35)411.00267.90290.93

2596.02

33234.39-

370.08235.40270.742188.39

Total expenses 37860.63 36299.01

V. Profit before exceptional and extraordinary items and tax (III-IV) 556.13 305.09

VI. Exceptionalitems - -

VII. Profit before extraordinary items and tax (V - VI) 556.13 305.09

VIII. ExtraordinaryItems - -

IX. Profit before tax (VII- VIII) 556.13 305.09X Tax expense:

(1)Currenttax(2)Deferredtax(3)ShortProvisionForLastYears

143.60(10.12)

1.06

112.822.110.09

XI Profit (Loss) for the period from continuing operations (IX-X) 421.59 190.07

XII Profit/(loss)fromdiscontinuingoperations - -

XIII Taxexpenseofdiscontinuingoperations - -XIV Profit/(loss)fromDiscontinuingoperations(Aftertax) (XII-XIII) - -

XV Profit (Loss) for the period (XI + XIV) 421.59 190.07XVI Earnings per equity share (in ₹) 5.58 2.52

As per our attached report of even dateFor BJS & AssociatesChartered AccountantsFirm Registration No. 113268W




STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31st MARCH, 2018


(Consolidated)

(₹ in Lakhs)

PARTICULARS For the Year ended 31st March 2018

For the Year ended 31st March 2017

CASH FLOW FROM OPERATING ACTIVITIES

Profit before tax and exceptional items 412.39 305.07

Adjustments For: DepreciationInterestPaidInterestreceived(Profit)/LossonSaleofFixedAssetsDividendReceivedRentIncomeMisc.Dr./Cr.Writtenoff

290.93 267.89 (72.54)(13.46)

(3.40)-

121.90

271.17235.31(75.67)(24.07)(2.14)(3.36)336.69

Operating Profit before working capital changes 1003.70 1043.00

Movements in working capital

Adjsutment for Decrease (Increase) in opearting assetsDecreaseinInventories(Increase)inTradeandotherReceivables(Increase)inShortTermLoansandAdvancesDecreaseinotherCurrentAssets(Decrease)inShortTermBorrowingsIncreaseinTradePayables(Decrease)inotherCurrentLiabilitiesIncreaseinShortTermProvisions(Decrease)inShortBorrowings

(12.35)(2752.48)

(17.77)7.50

(314.40)1783.93

334.11 57.80

-

-1882.84394.54(10.29)(255.00)(1947.65)(18.90)(18.62)(123.95)

Net Cash Flow from Operating Activities before tax and Exceptional Items (A) (913.67) (97.03)

TaxesPaid (110.47) (98.07)

Net cash generated from operating activities before exceptional items

(20.44) 847.90

ExceptionalItems - -

Net cash generated from operating activities (20.44) 847.90

CASH FLOW FROM INVESTING ACTIVITIES:IncreaseinMarginMoneyPurchaseofFixedAssetsSaleProceedsofFixedAssetsInterestreceivedDividendReceivedonInvestmentsPurchaseofInvestmentsRentReceivedRedemptionofmutualFundLongTermLoansandAdvances

89.02 (328.37)

60.00 72.54

3.40 47.85

- 250.00

(115.66)

(36.52)(409.62)

55.8475.672.140.003.36

-(36.87)

Net cash flow from investing activities 78.77 (346.00)

CASH FLOW STATEMENT FOR THE YEAR ENDED 31st MARCH, 2018

(Consolidated)


CASH FLOW FROM FINANCING ACTIVITIES:Addition/RepaymentofSecured/UnsecuredLoans(Net)OtherLongTermLoansandAdvancesInterestpaid

(58.08)

11.39 (267.89)

(8.72)9.11

(235.31)

Net cash flow from financing activities (314.58) (234.92)

NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS (256.25) 266.98

Cashandcashequivalentsatthebeginningoftheyear 356.25 89.27

Cashandcashequivalentsattheendoftheyear 100.00 356.25

As per our attached report of even dateFor BJS & AssociatesChartered AccountantsFirm Registration No. 113268W





(Consolidated)

NOTES TO THE FINANCIAL STATEMENTSAS AT AND FOR THE YEAR ENDED 31st MARCH 2018

1. Share Capital (₹ in Lakhs) Particulars As at 31st March, 2018 As at 31st March, 2017

Number Amount Number Amount AuthorisedEquitySharesofRs.10/-eachIssuedEquitySharesofRs.10/-eachSubscribed & fully Paid upEquitySharesofRs.10/-each

Total

1,00,30,000 1,003.00 1,00,30,000 1,003.00

75,50,000 755.00 75,50,000 755.00

75,50,000 755.00 75,50,000 755.00

75,50,000 755.00 75,50,000 755.00

1.1 33,00,000 shares out of the Equity Shares issued, subscribed & paid-up share capital were allotted as Bonus shares in the last five years by capitalisation of Securities Premium A/c & General Reserve.

1.2 The reconciliation of the number of shares outstanding is set out below: (₹ in Lakhs) Particulars Equity Shares

As at 31st March, 2018 As at 31st March, 2017

SharesoutstandingatthebeginningoftheyearSharesIssuedduringtheyearSharesboughtbackduringtheyearAnyothermovement(pleasespecify)Sharesoutstandingattheendoftheyear

Number Amount Number Amount75,50,000 755.00 75,50,000 755.00

- - - -- - - -- - - -

75,50,000 755.00 75,50,000 755.00

1.3 Terms/rights attached to equity sharesTheCompanyhasonlyoneclassofequityshareshavingaparvalueofRs.10.Theequityshareshaverights,preferencesandrestrictionswhichareinaccordancewiththeprovisionsoflaw,inparticulartheCompaniesAct,2013

1.4 Out of Equity shares issued by the Company, shares held by its holding company, ultimate holding company and their subsidiaries/associates are as below:

Particulars Nature of Relationship

As at 31st

March,2018As at 31st

March,2017

EquitySharesKomalInfotechPrivateLimited

HoldingCompany

47,83,910 47,83,910

1.5 Details of Shareholders holding more than 5% shares Name of Shareholder Equity Shares

As at 31st March, 2018 As at 31st March, 2017

No. of Shares held

% of Holding No. of Shares held

% of Holding

KomalInfotechPrivateLimitedPritiR.ShahRakeshR.ShahShaishavR.Shah

47,83,91014,47,6706,35,9404,87,270

63.36 19.17 8.42 6.45

47,83,91014,47,6706,35,9404,87,270

63.3619.178.426.45

(Consolidated)


2. Reserves & Surplus (₹ in Lakhs)Particulars As at 31st

March, 2018 As at 31st

March, 2017

a. Securities Premium Account

OpeningBalanceAdd:SecuritiespremiumcreditedonShareissueClosingBalance

337.00

337.00

337.00

337.00

Capital Reserve 15.00 15.00

b. General Reserves

OpeningBalance(+)CurrentYearTransfer(-) Amount Persuant to Scheme of Amalgamation[ReferNoteNo.24(v)]ClosingBalance

168.23--

183.23

168.23--

168.23

c. Surplus/Deficit in statement of Profit and Loss

Openingbalance(+)NetProfit/(NetLoss)Forthecurrentyear(+)TransferfromReserves(-)ShortProvisionofincometaxofearlieryears(-)ProposedDividend(-)TaxonProposedDividend(-)InterimDividends(-)TransfertoReservesClosingBalance

1252.94421.59

--

37.757.69

--

1629.09

1108.30190.07

--

37.757.69

--

1252.93

Total 2149.32 1773.17

3. Long-term Borrowings (₹ in Lakhs)Particulars Non-Current Current Maturities





-201.54

144.17144.29

-180.57

149.17-

-241.34

--

-138.83

--

Secured LoansTerm loans Rupee Loan-FromBanks-FromOthers(AllaboveloansaresecuredagainstHypothecationofMotorcars)LoanFromShaishavR.ShahLoanFromGSECLimited

489.99 329.74 241.34 138.83Amountdisclosedunderthehead*OtherCurrentLiabilities(Note-7) 241.34 138.83

Total 489.99 329.74 241.34 138.83

(Consolidated)


4. Other Long Term Liabilities (₹ in Lakhs)Particulars As at 31st


March, 2017TradePayable 9.27 18.84

Total 9.27 18.84

5. Short-term Borrowings (₹ in Lakhs)Particulars As at 31st


March, 2017a) Secured LoansWorkingcapitalfacilitiesfromStateBankofIndiaWorkingcapitalfacilitiesfromDCBBankLimited(SecuredagainsthypothecationofentireStocks/Receivables&otherCurrentAssetsoftheCompany(bothpresentandfurutreonparipassubasiswiththeBanks&PersonalGuaranteeofDirectors&theirrelatives)

650.72243.18

128.46109.68

893.91 238.14b) Unsecured Loans(i)Loansrepayableondemand 82.87 82.87

82.87 82.87(ii)LoansfromRelatedparties KOMALINFOTECHPRIVATELIMITEDGSECAVIATIONLIMITEDGSECLIMITEDKALPAVRUKSHAESTATEANDFINANCEPRIVATELIMITEDKOMALINFRASTUCTUREPRIVATELIMITED

98.95-

374.39--

928.2210.65

-73.4219.88

473.34 1032.17(iii) DepositsDirector’sDeposit 31.64 69.30

587.85 1184.34Total 1481.75 1422.48

6. Trade Payables (₹ in Lakhs)Particulars As at 31st


March, 2017TradePayables-ForExpensesOthers-ForPurchases

296.05 2,337.78

208.35630.05

Total 2,633.82 838.40

7. Other Current Liabilities (₹ in Lakhs)Particulars As at 31st


March, 2017(a)Currentmaturitiesoflong-termdebt(b)Unclaimeddividends Other payables (specify nature)a)StatutoryDuesPayablesb)Trade/SecurityDepositc)AdvancefromCustomersd)Provisionforbonuse)OtherLiabilities

241.342.08

112.81130.48173.66

20.762.97

138.833.61

41.6612.58131.3816.120.93

Total 684.09 345.11

(Consolidated)


8. Short-term Provisions (₹ in Lakhs)Particulars As at 31st


March, 2017(a) Provision for employee benefitsGratuity(Funded)LeaveEncashment(Unfunded)

1.8014.08

5.5612.91

15.87 18.47(b) OthersProposedDividendTaxonProposedDividendOtherProvisions

37.757.69

19.82

37.757.6923.42

65.26 68.85Total 81.13 87.32

9. Fixed Assets (₹ in Lakhs) Particulars Gross Block Accumulated Depreciation Net Block

Balance as at April

1, 2017

Additions/ (Disposals)

Deductions/ Adjustments

Balance as at

March 31, 2018

Balance as at April 1,

2017

Depreciation charge for the year

On disposals

Balance as at

March 31, 2018

Balance as at

March , 2018

Balance as at

March , 2017

a. Tangible Assets (Not Under Lease)LandBuildingsPlantandEquipmentFurnitureandFixturesVehiclesOfficeEquipmentComputersA.CMachines&Plant

395.471269.19560.59355.02581.17496.38127.8255.69

-117.9045.7159.2923.2862.4911.468.24

--

118.78-----

395.471387.09487.52414.31604.45558.86139.2863.93

-272.99246.49250.54285.28435.92109.6844.20

-52.7039.0137.5498.9642.9012.587.24

--

72.23-----

-325.69213.26288.09384.24478.81122.2751.43

395.471061.40274.26126.23220.2180.0517.0112.50

395.47996.20314.10104.47295.8960.4618.1411.49

Total 3841.32 328.37 118.78 4050.92 1645.10 290.93 72.23 1863.79 2187.13 2196.23

Previous Year’s Details 3521.23 409.60 89.52 3841.31 1431.67 271.17 57.75 1645.09 2196.23 2089.56

(Consolidated)


10. Non-Current Investments (₹ in Lakhs)Particulars As at 31st March,


2017

Other Investments

Investment in Equity Instruments

QUOTED INVESTMENTS

73925EquitySharesfullypaidupofRe.1/-eachofAdaniEnterprisesLimited 107.18 22.74

(P.Y.23925SharesofRe.1/-Each)

23925EquitySharesfullypaidupofRe.1/-eachofAdaniTransmissionLimited 0.00 17.30

(P.Y.23925SharesofRs.10/-each)

33789EquitySharesfullypaidupofRe.1/-eachofAdaniPortSpecialEconomicZoneLimited 0.00 10.18


44490EquitySharesfullypaidupofRe.1/-eachofAdaniPowerLimited 26.41 26.41


1000EquitySharesfullypaidupofRs.10/-eachofRelianceIndustriesLimited 3.89 3.89


6670EquitySharesfullypaidupofRs.10/-eachofTataSteelLimited 29.50 24.81


10000EquitySharesfullypaidupofRs.2/-eachofAXISBankLimited 40.36 40.36

(P.Y.10000SharesofRs.2/-Each)

10000EquitySharesfullypaidupofRe.1/-eachofStateBankofIndiaLimited 0.00 29.99

(P.Y.10000SharesofRe.1/-each)

25000EquitySharesfullypaidupofRe.1/-eachofCadilaHealthcareLimited 0.00 79.30


100000EquitySharesfullypaidupofRe.1/-eachofNeelaInfrastuctureLimited 11.72 11.72


250EquitySharesfullypaidupofRs.10/-eachofGNFCLimited(P.Y.250SharesofRs.10/-each) 0.05 0.05

100EquitySharesfullypaidupofRs.10/-eachofPANIndiaCorporationLimited 0.01 0.01


5EquitySharesfullypaidupofRe.1/-eachofPentamediaGraphicLimited 0.00 0.00


13700EquitySharesfullypaidupofRe.1/-eachofEnrichIndustriesLimited 0.69 0.69


UNQUATED INVESTMENTS

667EquitySharesofGITCOOFRs.100/-each 0.67 0.67


15000EquitySharesofKalupurCommercialCo.Op.BankLimitedofRs.25/-each 3.75 3.75

(P.Y.15000SharessharesofRs.25/-each)

InvestmentsinGovernmentSecurities-Unquoted

7YearsNationalSavingsCertificates 0.10 0.25

(DepositedwithMamlatdarGandhidham)

7YearsNationalSavingsCertificates 0.00 0.20

(DepositedwithGovernerofKarwar)

224.32 272.32

INVESTMENT IN PROPERTY

BlockD-SilverArcApartment 25.72 25.72

Total 250.04 298.04

(Consolidated)


11. Long Term Loans & Advances (Unsecured and Considered Good) (₹ in Lakhs)Particulars As at 31st


March, 2017CapitalAdvanceDepositandBalancewithGovernmentAuthoritiesDepositwithOthersAdvanceIncomeTax(NetofProvisions)OtherLoansandAdvances

60.163.81

20.0412.74

247.58

49.164.1121.1051.89111.91

Total 344.33 238.17

12. Current Investments (₹ in Lakhs)Particulars As at 31st


March, 2017InvestmentinMutualFund

PRINCIPALMUTUALFUND - 250.00SBIDuelAdvantageFund-SERIESXIX 5.00 5.00

Total 5.00 255.00

13. Inventories (₹ in Lakhs)Particulars As at 31st


March,2017

TradingGoods 22.37 10.02

Total 22.37 10.02

14. Trade Receivables (₹ in Lakhs)


As at 31st March,2017

Unsecured- Considered goodOutstandingforperiodexceedingsixmonthsOtherReceivables

266.083351.09

273.11713.47

3617.17 986.58Unsecured, considered doubtfulOutstandingforperiodexceedingsixmonthsOtherReceivables

--

--

- -

Less:Provisionfordoubtfuldebts - -

Total 3617.17 986.58

15. Cash & Cash Equivalents (₹ in Lakhs)Particulars As at 31st


March, 2017a. Balances with banks-InCurrentAccounts-InFixedDepositAccountsasMarginMoneyagainstBankGuarantee-UnpaidDividendAccounts

94.25

578.19 2.07

352.35665.683.59

b. Cash on hand 5.74 3.90Total 680.25 1,025.52

(Consolidated)


16. Short-term Loans and Advances (Unsecured and Considered Good) (₹ in Lakhs)Particulars As at 31st

March , 2018As at 31st

March , 2017LoanandadvancestorelatedpartiesLoanstoEmployees(Unsecured,consideredgood)PrepaidExpenses(unsecured,consideredgood)

518.689.47

35.08

10.268.5286.04

Balances with Statutory/Goverenment AuthoritiedCENVATCreditReceivableGSTCreditReceivableServiceTaxCreditReceivableSalesTaxCreditReceivable

-9.28

-25.00

0.08-

50.8025.00

78.83 170.44Other Loans and Advances (Unsecured , including advance to Suppliers)Unsecured,ConsideredGood 471.03 298.78

471.03 298.78Advance Income Tax(Net of Provision) 9.28 0.00

Total 1077.81 479.47

17. Other Current Assets (₹ in Lakhs)Particulars As at 31st


March, 2017InterestaccruedonFDRAdvancegiventoshilpShreeAssociatesInvestmentinSilverCoins

8.271.050.61

15.771.050.61

Total 9.93 17.42

18. Other Operating Revenues (₹ in Lakhs) Particulars 2017-18 2016-17AuctionSaleCommissionIncomeConsultancyincome

--

252.00

0.51150.0052.00

Total 252.00 202.51

19. Other Income (₹ in Lakhs) Particulars 2017-18 2016-17InterestIncomeInterestonI.T.RefundEntryTaxRefund-KarwarDividendIncomeIncomeonMutualFundProfitonSaleofFixedAssetsProfitonsaleofSharesForeignExchangeDifferenceBadDebtsRecoverAccountExcessProvisionforEarlierYearDutyDrawbackMisc.IncomeMisc./Dr./Cr.BalanceWrittenBackRoundOffKasar/DiscountOtherIncomeRentIncome

72.537.23

-3.40

55.4313.46

221.440.263.25

11.18-

25.2911.69

0.5721.60

-2.02

75.670.4117.132.14

-24.07

-5.554.751.870.472.06

--

1.0227.284.24

Total 449.34 166.66

(Consolidated)


20. Change in Inventories of Finished Goods (₹ in Lakhs)Particulars 2017-18 2016-17Inventories(atclose)Finishedgoods/Stockintrade 22.37 10.02Inventories(atcommencement)Finishedgoods/Stockintrade 10.02 10.02

Total (12.35) 0.00

21. Employee Benefits (₹ in Lakhs)Particulars 2017-18 2016-17(a)Salariesandincentives 266.85 231.58(b)RemunarationtoDirectors 97.15 101.14(c)Contributionsto

(i)Providentandotherfund 12.84 12.50(d)Gratuityfundcontributions - 5.78(e)Staffwelfareexpenses 34.15 19.08

Total 411.00 370.08

22. Finance Cost (₹ in Lakhs)Particulars 2017-18 2016-17InterestExpense 161.33 148.99BankCharges 3.02 3.64OtherBorrowingCosts 103.55 82.77

Total 267.90 235.40

(Consolidated)


23. Other Expenses (₹ in Lakhs) Particulars 2017-18 2016-17RentandLicenseFees 294.10 318.06LandLeaseRentforGuestHouse 8.01 7.45RatesandTaxes 3.16 5.93Insurance 12.89 34.33Employer/EmployeeInsurance 171.74 162.90Electricity 59.92 58.45StationeryandPrinting 10.44 7.15PostageandTelephone 15.40 15.39Repairs,Maintenance&RenovationtoBuilding 261.88 234.23AuditorsRemuneration 1.16 1.95FeesandLegalExpenses 43.32 55.31VehicleExpenses 23.01 21.61DetentionCharges 132.17 -Conveyance 2.91 2.11Advertisement&PublicityExpenses 11.33 115.46TravellingExpenses 135.13 95.81GuestHouseExpenses 15.29 15.79MiscellaneousExpenses 83.36 64.57Directorfees 1.90 2.15SalesPromotion 188.63 39.41SecurityExpenses 55.15 45.58Royalty 536.36 436.14PackingMaterials 10.38 6.10Donation 12.34 18.71BadDebtsWrittenOff 41.62 334.82Misc.Dr/Cr.Writtenoff 12.32 2.37ComputerRepairngExpenses&HardwareExpenses 5.30 2.23Commission 0.73 26.15DeputationChargestoCustomDepartment - 34.01CargoHandlingExpenses/GroundHandling 263.95 24.20PriorPeriodExpenses 1.67 -Discount/RateDifferenceExpenses 112.50 -AdvancesWrittenoff 67.96 -

Total 2596.02 2188.39

(Consolidated)


NOTES ON FINANCIAL STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2018

24. Significant Accounting Policies:

A. Basis of preparation of Consolidated Financial StatementsTheseconsolidatedfinancialstatementshavebeenpreparedtocomplywiththeGenerallyAcceptedAccountingPrinciples in India (IndianGAAP), including theAccountingStandardsnotifiedunder the relevantprovisionsof theCompaniesAct,2013.

B. Principles of ConsolidationTheconsolidated financial statements relate toGSEC Limited (‘theCompany’) and its subsidiaryCompanies. Theconsolidatedfinancialstatementshavebeenpreparedonthefollowingbasis:

a)Thefinancial statementsof theCompanyand its subsidiarycompaniesarecombinedona line-by-linebasisbyaddingtogetherthebookvaluesoflikeitemsofassets, liabilities, incomeandexpenses,afterfullyeliminatingintra-group balances and intra-group transactions in accordance with Accounting Standard (AS) 21 - “ConsolidatedFinancialStatements”

b)Thedifferencebetweenthecostofinvestmentinthesubsidiaries,overthenetassetsatthetimeofacquisitionofsharesinthesubsidiariesisrecognisedinthefinancialstatementsasGoodwillorCapitalReserve,asthecasemaybe.

c)Thedifferencebetweentheproceedsfromdisposalof investment insubsidiariesandthecarryingamountof itsassets less liabilitiesasofthedateofdisposal isrecognisedintheconsolidatedProfitandLossStatementbeingtheprofitorlossondisposalofinvestmentinsubsidiary.

d)MinorityInterest’sshareofnetprofitofconsolidatedsubsidiariesfortheyearisidentifiedandadjustedagainsttheincomeofthegroupinordertoarriveatthenetincomeattributabletoshareholdersoftheCompany.

e)Minority Interest’sshareofnetassetsofconsolidatedsubsidiaries is identifiedandpresented intheconsolidatedbalancesheetseparatefromliabilitiesandtheequityoftheCompany’sshareholders.f)Gains/Lossesarisingonthedirectsalebythecompanyofitsinvestmentsinsubsidiariesorassociatedcompaniestothirdpartiesaretransferredtoconsolidatedstatementsofprofitandloss.Suchgainsor lossesarethedifferencebetweenthesaleproceedsandnetcarryingvalueofinvestments.

g)As faraspossible, theconsolidatedfinancialstatementsarepreparedusinguniformaccountingpolicies for liketransactionsandotherevents in similarcircumstancesandarepresented in the samemanneras theCompany’sseparatefinancialstatements.Surplusordeficitsarisingonsaleofcompany’sownsharesheldbyitssubsidiariesalongwiththetaxthereonistakentocapitalreserve.

C. Investments other than in subsidiaries and associates have been accounted as per Accounting Standard (AS) 13 on “Accounting for Investments”.

D. Other significant accounting policies these are set out under “Significant Accounting Policies” as given in the Company’s separate financial statements.

25 . Other Notes Forming Part Of Accounts:

(i)DetailsofPaymentstoAuditor (₹ in Lakhs)Particulars 2017-18 2016-17a.Auditor 1.00 1.01b.Fortaxationmatters - -c.Certification(IncludedinFeesandLegalExpenses). - -

Total 1.00 1.01

(ii) Salariesandwagesof₹97.75Lakhs(PreviousYear₹101.14Lakhs)beingtheremunerationtoExecutiveDirectors’oftheCompany.Thesaidremunerationisnotinexcessofthelimitslaiddownu/s197readwithScheduleVoftheCompaniesAct,2013.

(Consolidated)


(iii)Balanceofdebtors,creditors,loansandadvancesaresubjecttoconfirmationbythepartiesconcernedandadjustment,ifany.

(iv)ContingentLiabilitiesnotprovidedfor:

A. Claimsagainstthecompanynotacknowledgedasdebtof₹61.86Lakhs(PreviousYear₹92.86Lakhs)

B. BankGuaranteeissuedtoCustomsDepartment–Ahmedabadof₹2974Lakhs(PreviousYear₹2974Lakhs)

C.Higher demandof ₹ 34.76 Lakhs including Interest for non-payment of thedemand raisedby TheAirportDirector, Indore forHangerRent for theperiod from01.04.2008 to20.06.2013,as theCompanyhas sought toreversethisamountonthebasisofsimilarearlierreversal.Theagreementforrenewalofaircargocomplexlicensewhichwasdueon23.11.2011isalsonotexecuted,pendingResolutionofthisdispute.HowevertheworkatAirCargoComplex–IndorecontinuesandCompanyhasdeposited₹35Lakhsin2013-14underprotest.

D. Demandraisedin2012-13byDirectorateofrevenueintelligenceforshortpaymentofCustomDutyforImportofBitumenatvariousportsof₹310.26Lakhs.Asthecustomdepartmenthasadoptedthevaluedeclaredforimports is lowerthanthemarketvalue.Thecompanyhasobjectedtheabovedemandraised inshowcausenotice,hencenoprovisionhasbeenmadeinthebooksofaccounts.

E. Demandraised in2012-13byTheAsst.CommissionerofCommercialTax,FlyingSquad–Ahmedabadof₹ 887.39LakhsfornotallowinginputcreditofVATonthepurchasesofDrinkingWaterPlant/WaterTreatmentPlantfortheyear2007-08and2008-09,asthesupplierfromwhomthepurchaseshavebeenmadehavenotpaidtheVat taxcollected fromthecompany.As thecompanyhaspreferredanappealbeforehigherauthoritiesnoprovisionintheaccounthavebeenmade.However,theCompanyhasdeposited₹25Lakhsunderprotest.

(v)DisclosurespursuanttoAccountingStandard(AS)15(Revised)

Employees Benefits:- DefinedBenefitsPlansasperActuarialValuationonMarch31,2018.(₹ In Lakhs)

Sr. No. Gratuity Leave Encashment

Particulars 31.03.2018 31.03.2017 31.03.2018 31.03.2017

(1) The amounts recognized in the Balance Sheet as at the end of the year

PresentValueofFundedObligation (53.13) (51.90) - -

FairValueofPlanAssets 51.33 46.34 - -

PresentValueofUnfundedObligation - - 14.08 (12.91)

Net( Assets)/liability (1.80) (5.56) 14.08 (12.91)

(2) The amounts recognized in Profit and Loss Account for the year

CurrentServiceCost 5.79 4.68 1.65 1.31

InterestCost 0.41 0.28 0.94 0.90

ExpectedReturnonPlanAssets - - - -

Actuarial(Gains)/Losses (11.97) 2.87 (1.42) 1.68

ActualReturnonPlanAssets 5.22 - - -

Total Expenses (0.55) 7.38 - -

(Consolidated)


(3) The Changes in Obligations during the year

PresentvalueofDefinedbenefitObligationatthebeginningoftheyear 51.90 43.82 12.91 11.26


InterestCost 3.78 3.49 0.94 0.90


BenefitPayments (1.53) (2.79) - (2.24)

PastServiceCost 5.22 - - -

Present value of Defined Benefit Obligation at the end of the year 53.12 51.90 14.08 12.91

(4) The changes in Plan Assets during the year

PlanAssetsatthebeginningoftheyear 46.34 40.31 - -

Actuarialgainsand(losses) (0.07) (0.17) - -

ContributionbyEmployer 2.37 5.78 - -

ActualBenefitPaid (0.69) (2.79) - -

Planassetsattheendoftheyear 51.33 46.34 - -

Actual return on Plan Assets 3.38 3.22 - -

Sr. No.

Particulars Gratuity (Funded) Leave Encashment (Unfunded)


7.29%-

7%58Years

7.29%-

7%58Years

(vi)RelatedPartyDisclosure: AsperAccountingStandard18(AS-18)RelatedPartydisclosureissuedbyICAIthedisclosureoftransactionwithrelatedpartiesasdefinedinAS-18aregivenbelow

A. Name of Related parties & Description of Relationship with whom Transactions where made during the year.

Nature of Relationship Name of Related Party

HoldingCompany KomalInfotechPrivateLimited

SubsidiaryCompany GSECLogisticsLimited

GSECGreenEnergyPrivateLimited

FellowSubsidiaryCompany GSECAviationLimited

KomalInfraventuresPrivateLimited

(Consolidated)


(3) The Changes in Obligations during the year

PresentvalueofDefinedbenefitObligationatthebeginningoftheyear 51.90 43.82 12.91 11.26


InterestCost 3.78 3.49 0.94 0.90


BenefitPayments (1.53) (2.79) - (2.24)

PastServiceCost 5.22 - - -

Present value of Defined Benefit Obligation at the end of the year 53.12 51.90 14.08 12.91

(4) The changes in Plan Assets during the year

PlanAssetsatthebeginningoftheyear 46.34 40.31 - -

Actuarialgainsand(losses) (0.07) (0.17) - -

ContributionbyEmployer 2.37 5.78 - -

ActualBenefitPaid (0.69) (2.79) - -

Planassetsattheendoftheyear 51.33 46.34 - -

Actual return on Plan Assets 3.38 3.22 - -

Sr. No.

Particulars Gratuity (Funded) Leave Encashment (Unfunded)


7.29%-

7%58Years

7.29%-

7%58Years

(vi)RelatedPartyDisclosure: AsperAccountingStandard18(AS-18)RelatedPartydisclosureissuedbyICAIthedisclosureoftransactionwithrelatedpartiesasdefinedinAS-18aregivenbelow

A. Name of Related parties & Description of Relationship with whom Transactions where made during the year.

Nature of Relationship Name of Related Party

HoldingCompany KomalInfotechPrivateLimited

SubsidiaryCompany GSECLogisticsLimited

GSECGreenEnergyPrivateLimited

FellowSubsidiaryCompany GSECAviationLimited

KomalInfraventuresPrivateLimited

KeyManagementPersonnel RakeshRamanlalShah

SamirHanskumarMankad

ShaishavRakeshkumarShah

RajiS.Shah

RelativeofKeyManagementPersonnel PritiRakeshShah

Other Related parties (Enterprise owned or significantlyinfluencedbyKeyManagementpersonnel)

GSECInfrastructurePrivateLimited

KalpavrukshaEstateAndFinancePrivateLimited

KeshavLandDevelopersPrivateLimited

PrerakCapitalServicesPrivateLimited

VishwaImportsLLP

B. Transaction during the year with related Parties (Excluding Reimbursement) (₹ in Lakhs) Nature of

Transaction

Holding Company

Fellow Subsidiary Company

Relative of Director

Key Management Personnel

Komal Infotech Pvt.

Limited

GSEC Aviation Limited

Priti R. Shah Rakesh R. Shah

Shaishav R. Shah

Samir H. Mankad

Raji S. Shah

RentPaid - - 24.96 - 3.10 - -InterestPaid 47.04 1.72 - 8.81 0.17 - -Remuneration - - - 36.00 22.85 29.76 8.54Outstandingason31.03.2018 (98.95) 304.66 - (23.08) (8.56) - -

LoanTaken 500.00 205.00 - 589.00 14.33 - -LoanRepaid 1371.60 520.66 - 640.80 8.27 - -

(vii)ThenetDeferredTax(Liabilities)/AssetsasonMarch31,2018atasfollows.(₹ in Lakhs)Deferred Tax Assets arising from 2017-18 2016-17NetdeferredTaxAssets/(Liability) 90.18 80.06

ThetaximpactfortheabovepurposehasbeenarrivedbyapplyingataxRateof33.063%beingtheprevailingtaxrateforIndiancompaniesundertheIncomeTaxAct,1961.Basedonthemanagement’sestimate;thecompanywouldhavesufficientTaxableIncomeinfuturetoutilizecreditavailableundertheIncomeTaxAct,1961.

(viii)EarningperShare(EPS): (₹ in Lakhs)Particulars 2017-18 2016-17Netprofit(Loss)afterTax 421.59 190.07NumberofEquityShare 75,50,000 75,50,000

NominalValueofEquityShare 10.00 10.00

Basic&DilutedEarningPerShare(In₹) 5.58 2.52

(Consolidated)


(ix)OtherinformationrequiredintermsofClause5(viii)ofPart-IIofScheduleIIItotheCompaniesAct,2013 (₹ in Lakhs)

Particulars 2017-18 2016-17a C.I.F.valueofimportsof:

TradingGoodsSparepartsCapitalGoods

---

1107.35-

137.80b ExpenditureinForeignCurrency

OnForeignTravelExpenditureinForeignCurrency:onpurchaseofcapitalitems

63.56

-

33.23

-c Consumptionof:

i.RawMaterialsii.StoreandSparesParts

--

--

d RemittanceinForeignCurrencyOnaccountsofAgencyCommission - -e EarninginForeignExchange(ValueofGoodsExported) - -

(x)AspertherequirementofScheduleIIIoftheCompaniesAct,2013,theamountsoffinancialstatementshavebeenroundedofftothenearestlakhsofRupees.Hence,thedifferencesintotalandsub-totalofsomeitemsareinevitable.

26. Segment Information:BasedontheguidingprinciplesgiveninAccountingStandardon‘SegmentReporting’(AS–17)asnotifiedbyCompaniesAccountingStandardsRules,2008,thecompany’sprimarybusinesssegmentsareAirportServiceandTradingActivitieswhichhavegottheirownrespectiveriskandreturnprofiles.

Financialinformationabouttheprimarybusinesssegmentfortheyearended31stMarch,2018(₹ in Lakhs) Air Cargo Trading Activities Others Total

2017-18 2016-17 2017-18 2016-17 2017-18 2016-17 2017-18 2016-17A. Revenue

Services/SalesRevenue 3573.38 2975.17 34394.04 33462.68 - - 37967.41 36437.85IntersegmentRevenue - - - - - - - -

TotalRevenue 3573.38 2975.17 34394.04 33462.68 - - 37967.41 36437.85B. Result Segment Result Profit/Loss 3573.38 2975.17 99.25 228.29 - - 3672.63 3203.46OtherIncomeexcludingInterestIncome

369.58 73.44

OtherUnallocableExpenses

3297.95 2829.62

OperatingProfit 744.26 447.28InterestIncome 79.76 93.21InterestExpenses 267.90 235.40

ProfitBeforeTax 556.13 305.09ProvisionForIncomeTax(includingDeferredTax)

134.53 115.02

(Consolidated)


Net Profit After Tax 421.59 190.07C. Other Information CapitalEmployed

SegmentAssets 4119.98 2778.24 3225.54 2175.09 938.85 633.10 8284.38 5586.43

SegmentLiabilities 477.61 269.74 2278.83 1287.01 2578.18 1456.07 5334.62 3012.82

OtherUnallocableCorporateAssetsandLiabilities

- - - - - - - -

Total Capital Employed 2949.76 2573.61

CapitalAssets/ExpenditureincludingCapitalWork-in-ProgressincurredduringtheYear

242.61 340.50 85.76 69.12 - - 328.37 409.62

OtherUnallocableCapitalExpenditures

- - - - - - - -

Total 242.61 340.50 85.76 69.12 - - 328.37 409.62

D. Segment Depreciation 188.26 175.47 102.67 95.70 - - 290.93 271.17E. Non-cash Expenses other than Depreciation

- - 41.62 334.82 - - 41.62 334.82

Previousyear’sfigureshavebeenregrouped/reclassifiedwhenevernecessarytocorrespondwiththecurrentyear’sclassification/disclosure. As per our attached report of even date






NOTICEisherebygiventhatthe52ND ANNUAL GENERAL MEETINGoftheMembersofGSEC LIMITEDwillbeheldonFriday,the28th day of September, 2018at11:00 a.m.atSheth Sri Kasturbhai Lalbhai Hall, Gujarat Chamber of Commerce and Industries’ Building, Ashram Road, Ahmedabad - 380 009totransactthefollowingbusiness:

ORDINARY BUSINESS:-1 To receive, consider and adopt the Audited Standalone and Consolidated Financial Statements of theCompany including audited Balance Sheet, as at 31stMarch, 2018, Statement of Profit and Loss andCash FlowStatementfortheyearendedon31stMarch,2018togetherwiththeDirectors’ReportandtheAuditors’Reportthereon.

2 TodeclareadividendonequitysharesfortheFinancialYearendedMarch31,2018.

3 ToappointaDirectorinplaceofShriSamirHanskumarMankad(DIN:00421878),whoretiresbyrotationandbeingeligibleseeksre-appointment.

SPECIAL BUSINESS:-4 AppointmentofShriMaheswarSahu(DIN:00034051)asanIndependentDirectorofthecompany.

Toconsiderandifthoughtfit,topasswithorwithoutmodification(s),thefollowingresolutionasanORDINARY RESOLUTION:

“RESOLVED THATpursuanttoprovisionofSections149,152,ScheduleIVandotherapplicableprovisions,ifany,of theCompaniesAct,2013andtheCompanies (AppointmentandQualificationofDirectors)Rules,2014(includinganystatutorymodification(s)orre-enactmentthereofforthetimebeinginforce),ShriMaheswarSahu(DIN:00034051),whowasappointedasanAdditionalDirectoroftheCompanybytheBoardofDirectorswitheffect fromApril27,2018andwhoholdsofficetill theconclusionofensuingAnnualGeneralMeetingintermsofSection161oftheCompaniesAct,2013andinrespectofwhomtheCompanyhasreceivedanoticeinwritingfromamemberunderSection160oftheCompaniesAct,2013,proposingcandidatureofShriMaheshwarSahufortheofficeofDirector,beandisherebyappointedasanIndependentDirectoroftheCompanytoholdofficeforatermof5years.”

5 AppointmentofSmt.RajiShaishavShah(DIN:06893581)asaDirectoroftheCompany.


“RESOLVED THATinaccordancewiththeprovisionsofSection161andotherapplicableprovisions,ifany,oftheCompaniesAct,2013readwiththeCompanies(AppointmentandQualificationofDirectors)Rules,2014,Smt.RajiShah(DIN:06893581)whowasappointedasanAdditionalDirectoroftheCompanybytheBoardofDirectorswitheffectfromMarch30,2018andholdsofficeuntiltheconclusionofensuingAnnualGeneralMeetingandinrespectofwhomtheCompanyhasreceivedanoticeinwritingfromamemberunderSection160oftheCompaniesAct,2013signifyingtheintentiontoproposeappointmentofSmt.RajiShahasaDirectoroftheCompany,beandisherebyappointedasaDirectoroftheCompanyliabletoretirebyrotation.”

6 AppointmentofSmt.RajiShaishavShah(DIN:06893581)asaWhole-timeDirectoroftheCompany.


“RESOLVED THAT pursuanttotheprovisionsofSection196,197andanyotherprovisions,ifany,oftheCompaniesAct,2013readwithScheduleVofthesaidActalongwithrulesmadethereunder,approvalbeandisherebygrantedfortheappointmentofSmt.RajiShah(DIN:06893581),asaWhole-timeDirectoroftheCompanyonthetermsandconditionsasstatedbelow:

(A) Tenure:1stApril,2018to31stMarch,2021

(B) Salary:Salaryplusallowanceswithdifferentbreakupberevisedandpayablemonthly/yearlybasiswithinoveralllimitofyearlypackagenotexceedingRs.18,00,000/-,subjecttoceilingofthemanagerialremunerationundertheCompaniesAct,2013andrulesmadethereunder,foreachyear.

NOTICE OF 52ND ANNUAL GENERAL MEETING


(C) Increment:Anannualincrementintherangeof15%-20%dependingupontheperformance,onthetotalsalaryamount.

(D) Perquisites: Inadditiontothesalary,thesaidDirectorshallbeeligibleforthefollowingperquisites:

I. MedicalReimbursement:ExpensesincurredforselfandherfamilysubjecttoaceilingofRs.24,000/-peryearorRs.72,000/-overaperiodofthreeyears.II. ContributiontoProvidentFund,SuperannuationFundorAnnuityFundtotheextenttheseeithersinglyorputtogetherarenottaxableundertheIncomeTaxAct,1961.III. Gratuitypayableataratenotexceedinghalfmonth’ssalaryforeachcompletedyearofservice.IV. Encashmentofleaveattheendofthetenure.V. PersonalCarforofficialuseandpurposeshallbeprovidedbytheCompany.ExpensesforDriverandFuelReimbursementshallbemade.VI. Inadditiontoabove,thesaidDirectorshallbeentitledtoallotherperquisitesandbenefitsasapplicabletotheExecutiveDirectorsoftheCompanyaspertheRemunerationPolicyframedbytheNominationandRemunerationCommitteeandexistingrulesandpoliciesoftheHRDepartmentoftheCompany.

RESOLVED FURTHER THATthesaidDirectorshallbeliabletoretirebyrotation.

RESOLVED FURTHER THATintheeventoflossorinadequacyofprofitsinanyfinancialyear,sheshallbepaidremunerationbywayofsalaryandperquisitesasspecifiedabove,howeverinanycase,thetotalremunerationshallnotexceedthelimitasspecifiedinScheduleVoftheCompaniesAct,2013.

RESOLVED FURTHER THATtheaboveremunerationpayabletohershallbesubjecttolimitsasmaybeprescribedfromtimetotimeundertheprovisionsoftheCompaniesAct,2013,Schedulethereofandrulesthereunderaswellasanyotherstatutoryprovisionasmaybeapplicable,includingstatutorymodificationsthereof,ifany.

RESOLVED FURTHER THAT theBoardbeand isherebyauthorizedtodoall suchacts,deedsandthingsandexecuteallsuchdocuments, instrumentsandwritingsasmayberequiredandtodelegatealloranyof itspowershereinconferredtoanyCommitteeofDirectorsorDirector(s)togiveeffecttotheaforesaidresolution.”

NOTES: 1 Amemberentitledtoattend,andvoteisentitledtoappointaproxy,or,wherethatisallowed,oneormoreproxies,toattendandvoteinsteadofhimself,andthataproxyneednotbeamember.

2 PursuanttoprovisionsofSection105oftheCompaniesAct,2013,readwiththeapplicablerulesthereon,apersoncanactasaproxyonbehalfofmembersnotexceedingfiftyandholdingintheaggregatenotmorethantenpercentofthetotalsharecapitaloftheCompanycarryingvotingright.Incasetheproxyisproposedtobeappointedbyamemberholdingmorethan10%ofthetotalsharecapitalofthecompanycarryingvotingrights,thensuchproxycannotactasaproxyforanyotherpersonorshareholder.

3 Aproxy,inordertobeeffective,mustbereceivedattheregisteredofficeofthecompanynotlessthan48hoursbeforethecommencementofthemeeting.

4 A statementpursuant toSection102(1)of theCompaniesAct, 2013 relating to theSpecialBusiness tobetransactedattheMeetingisannexedhereto.

5 CorporatemembersintendingtosendtheirauthorizedrepresentativestoattendthemeetingarerequestedtosendtotheCompanyacertifiedcopyoftheBoardResolutionauthorizingtheirrepresentativetoattendandvoteontheirbehalfatthemeeting.

6 OnlybonafidemembersofthecompanywhosenamesappearontheRegisterofMembers/Proxyholders,inpossessionofvalidattendanceslipsdulyfilledandsignedwillbepermittedtoattendthemeeting.Thecompanyreservesitsrighttotakeallstepsasmaybedeemednecessarytorestrictnon-membersfromattendingthemeeting.

7 MembersarerequestedtobringtheircopiesofAnnualReporttotheMeeting.

8 Incaseofjointholdersattendingthemeetingonlysuchjointholderwhoishigherintheorderofnameswillbeentitledtovote.

9 Companyhasfixed28thSeptember,2018asrecorddateforthepurposeofdeterminingtheentitlementofdividend.


10 The unclaimed/unpaid dividend till the financial year endedMarch 31, 2010 has been transferred to theInvestorEducationandProtectionFundoftheCentralGovernment(“theFund”).Shareholdersarerequestedtonotethatonceunpaid/unclaimedamountsaretransferredtotheFund,noclaimshalllieagainsttheFundortheCompany.Shareholderswho have not yet encashed their dividendwarrants are requested to do so sufficiently in advancebeforethesaidtransferstakeplace.PursuanttotheprovisionsofSection124(6)oftheCompaniesAct,2013,andtheInvestorEducationandProtectionFundAuthority(Accounting,Audit,TransferandRefund)Rules,2016,asamendedfromtimetotime,allequitysharesoftheCompanyonwhichdividendhasnotbeenpaidorclaimedfor7consecutiveyearsormoreshallbetransferredbytheCompanytoInvestorEducationandProtectionFund.TheCompanyhasalsowrittentotheconcernedshareholdersintimatingthemtheirparticularsoftheequitysharesduefortransfer.NoclaimshalllieagainsttheCompanyinrespectoftheseequitysharesposttheirtransfertoInvestorEducationandProtectionFund.Upontransfer,theshareholderswillbeabletoclaimtheseequitysharesonlyfromtheInvestorEducationandProtectionFundAuthoritybymakinganonlineapplication.TheCompanyhasalreadytransferred13,530EquitySharestothedesignatedAccountofIEPFduringtheyear2017-18.11 Membersarerequestedtointimateanychangeofname,addressetc.toRTAi.e.M/s.BigshareServicesPrivateLimitedatA/802,SamudraComplex,NearKlassicGoldHotel,OffCGRoad,Ahmedabad-380009or theSecretarialDepartmentoftheCompanyatregisteredofficeimmediately.

12 Members desirous of getting any information about the accounts and operations of the Company arerequestedtosubmittheirqueriesaddressedtotheCompanySecretaryatleast7daysinadvanceofthemeetingsothattheinformationcalledforcanbemadeavailableatthemeeting.

13 MemberswhoareholdingphysicalsharesinidenticalorderofnamesinmorethanonefolioarerequestedtosendtotheCompanyorCompany’sShareTransferAgentthedetailsofsuchfoliostogetherwiththesharecertificatesforconsolidatingtheirholdinginonefolio.Thesharecertificateswillbereturnedtothemembersaftermakingrequisitechanges,thereon.MembersarerequestedtousethenewsharetransferformSH-4forthesame.

14 MembersholdingsharesinsinglenameandphysicalformareadvisedtomakenominationinrespectoftheirshareholdingintheCompany.TheNominationFormSH13prescribedbytheGovernmentcanbeobtainedfromtheRegistrarandTransferAgentortheSecretarialDepartmentoftheCompanyatitsRegisteredOffice.

15 MembersdesiringforcancellingormakinganyvariationinthedetailsofnominationarerequiredtosubmitSH14asprescribedbytheGovernmentandtheformcanbeobtainedfromtheRegistrarandTransferAgentortheSecretarialDepartmentoftheCompanyatitsRegisteredOffice.

16 MembersmayalsonotethattheNoticeofthe52ndAnnualGeneralMeetingandtheAnnualReportforthefinancial period ended on 31.03.2018 will also be available on the Company’s website www.gsecl.co.in for theirownload.

17 TheinvestorsmaycontacttheCompanySecretaryforredressaloftheirgrievances/queries.Forthispurpose,theymayeitherwritetohimattheregisteredofficeaddressore-mailtheirgrievances/queriestothee-mailaddress:[email protected].

18 ARouteMapshowingtheDirectionstoreachthevenueofthe52ndAnnualGeneralMeetingisattachedherewithaspertherequirementofSecretarialStandards-2onGeneralMeeting.


19 Details of Directors seeking appointment/re-appointment at the 52nd Annual General Meeting of theCompany:

Name of Director Shri Samir Hanskumar Mankad

Smt Raji Shaishav Shah Shri Maheswar Sahu

DateofBirth July13,1960 February21,1982 January01,1954

DIN 00421878 06893581 00034051

DateofAppointment March08,2004 March30,2018 April27,2018

RelationshipwithDirectors

None SpouseofShriShaishavShahWholetimeDirectorofthecompanyandDaughterin-LawofShriRakeshShahManagingDirectorofthecompany

None

Qualifications B.E.(Mechanical),M.B.A. BCom B.Sc. (Engg.) in Electrical in 1977 fromNIT, Rourkela and M.Sc. from University ofBirminghamin1994.

Expertiseinfunctionalarea

AirCargooperations,Logisticsandalliedservices

AdministrativeandFinance Strategicplanning,policymakingandimplementation.

BoardMembershipinotherCompaniesasonMarch31,2018

1.GSECLOGISTICSLIMITED2.GSECAVIATIONLIMITED

1.GSECINFRASTRUCTUREPRIVATELIMITED2.GSECGREENENERGYPRIVATELIMITED3.KOMALINFRAVENTURESPRIVATELIMITED4.KOMALINFOTECHPRIVATELIMITED5.KALPAVRUKSHAESTATEANDFINANCEPRIVATELIMITED

1.NATIONALALUMINIUMCOLTD2.HEUBACHCOLOURPRIVATELIMITED3.GOLDPLUSGLASSINDUSTRYLIMITED4.IRMENERGYPRIVATELIMITED5.GIFTSEZLIMITED6.MAHINDRAWORLDCITY(JAIPUR)LIMITED7.GVFLLIMITED8.SOLVAYSPECIALITIESINDIAPRIVATELIMITED9.ASPIREDISRUPTIVESKILLFOUNDATION10.SMEMAVENSFOUNDATION11.GVFLADVISORYSERVICESLIMITED

Chairman/MemberoftheCommitteeoftheBoardofdirectorsinothercompaniesasonMarch31,2018

NIL NIL Membership01andChairmanship01

NumberofSharesheldintheCompanyasonMarch31,2018

NIL NIL NIL

By Order of the Board of Directors,

Chintan PatelCompany Secretary

August 28, 2018Registered Office: 2ndFloor,GujaratChamber’sBuilding,AshramRoad,Ahmedabad-380009.


EXPLANATORY STATEMENT AS REQUIRED UNDER Section 102(1) OF THE COMPANIES ACT, 2013

ThefollowingstatementsetsoutallmaterialfactsrelatingtocertainSpecialBusinessesmentionedintheaccompanyingNotice.

Item No. 5ShriMaheswarSahuhasbeenappointedbytheBoardofDirectorsoftheCompanyasanAdditionalDirector(Category:Independent)witheffectfromApril27,2018.HeholdsofficeuntiltheensuingAnnualGeneralMeetingunderSection161(1)oftheCompaniesAct,2013.

TheCompanyhasreceivednoticeinwritingundertheprovisionsofSection160oftheCompaniesAct,2013fromamemberproposingthecandidatureofShriMaheswarSahufortheofficeofIndependentDirector,tobeappointedassuchundertheprovisionsofSection149oftheCompaniesAct,2013.

ShriSahuhasdoneB.Sc.(Engg.)inElectricalin1977fromNIT,RourkelaandM.Sc.fromUniversityofBirminghamin1994.HejoinedIndianAdministrativeService(IAS)in1980.HehasservedtheGovernmentofIndiaandGovernmentofGujaratinvariouscapacitiesformorethanthreedecadesbeforeretiringasAdditionalChiefSecretary,GovernmentofGujaratin2014.Hiscareerspanincludesmorethan20yearsofserviceinindustryandmore than10 yearsofactive involvement inPSUmanagement.Hehadworkedmore than3 yearsinUnitedNationsIndustrialDevelopmentOrganization.Hewasinstrumental inorganizationoffourVibrantGujaratevents.HeservedasdirectorinmanyCPSEs.HewasalsoChairman/DirectorinmanyStatePSUs.Hisareaofspecialization includesstrategicmanagement,publicadministration,corporategovernanceetc.andextensiveexperienceandexpertiseinhisareawilladdtremendousvaluetothefunctioningoftheBoardandperformanceoftheCompany.

HedoesnotholdanysharesintheCompany.

ShriSahuhasgivenhisconsenttoactasaDirectorandheisnotdisqualifiedintermsofSection164oftheCompaniesAct,2013forbeingappointedasDirector.

The Company has received declaration from him that he meets with the criteria of independence asprescribedundersubsection(6)ofSection149oftheCompaniesAct,2013andRulesmadethereunder.

TheBoardisoftheopinionthatShriSahufulfillstheconditionsspecifiedinthesaidActandtheRulesmadethereunderandalsopossessappropriatebalanceofskills,experienceandknowledgesoastoenabletheBoard to discharge its functions andduties effectively and he is independent of themanagement. ShriSahuisproposedtobeappointedasanIndependentDirectorforatermof5yearsuptoApril26,2023.TheCompanyhasreceivedthenoticefrommemberproposingcandidatureofShriSahufortheappointmentasaDirector.

TheBoardrecommendstheResolutionsetoutunderitemno.5forapprovalofmembers.

ExceptShri Sahu,beinganAppointee,noneof theotherDirectorsof theCompanyor their relativesareconcernedorinterested,financiallyorotherwise,inthisresolution.

TheCompanyisnotrequiredtoappointKeyManagerialPersonnelintheCompany.

Item No. 6 & 7Smt.RajiShaishavShahwasappointedasanAdditionalDirectorontheBoardoftheCompanywitheffectfromMarch30,2018inaccordancewiththeprovisionsofSection161oftheCompaniesAct,2013.Atthesamemeeting, the Boardalsoappointed Smt. Raji ShahasaWhole TimeDirector foraperiodof threeyearsfromApril01,2018onthetermsandconditionsassetoutbelowasapprovedbytheBoard,subjecttoapprovalofthemembersattheensuingAnnualGeneralMeeting(AGM).

Ascompanyneedssuchprofilewholooksaftercompany’sdaytodayaffairsincludingfinancialactivities,appointmentofSmt.RajiShahisfoundmostsuitableforthesaidpost.Afterconsideringthesame,theBoardrecommendsherappointmentasaWholetimeDirectoroftheCompanyinbestinterestsoftheCompany.

PursuanttotheprovisionsofSection161oftheCompaniesAct,2013,Smt.RajiShahwillholdofficeuptothedateofensuingAGM.TheCompanyhasreceivednoticeinwritingundertheprovisionsofSection160oftheCompaniesAct,2013fromamemberproposingthecandidatureofSmt.RajiShahfortheofficeofDirector.


Theproposal fortheappointmentofSmt.RajiShahasaWhole-timeDirectoroftheCompanyasperthetermsandconditionsmentionedbelow,isthereforeplacedbeforethemembersforapproval.

ThedetailsofremunerationpayabletoSmt.RajiShahandthetermsandconditionsoftheappointmentaregivenbelow:

Tenure:1stApril,2018to31stMarch,2021

(A) Salary:Salaryplusallowanceswithdifferentbreakupberevisedandpayablemonthly/yearlybasiswithinoveralllimitofyearlypackagenotexceeding₹18,00,000/-,subjecttoceilingofthemanagerialremunerationundertheCompaniesAct,2013andrulesmadethereunder,foreachyear.

(B) Increment:Anannualincrementintherangeof15%-20%dependingupontheperformance,onthetotalsalaryamount.

(C) Perquisites:Inadditiontothesalary,thesaidDirectorshallbeeligibleforthefollowingperquisites:

I. MedicalReimbursement:ExpensesincurredforselfandherfamilysubjecttoaceilingofRs.24,000/-peryearorRs.72,000/-overaperiodofthreeyears.II. ContributiontoProvidentFund,SuperannuationFundorAnnuityFundtotheextenttheseeithersinglyorputtogetherarenottaxableundertheIncomeTaxAct,1961.III. Gratuitypayableataratenotexceedinghalfmonth’ssalaryforeachcompletedyearofservice.IV. Encashmentofleaveattheendofthetenure.V. PersonalCarforofficialuseandpurposeshallbeprovidedbytheCompany.ExpensesforDriverandFuelReimbursementshallbemade.VI. Inadditiontoabove,thesaidDirectorshallbeentitledtoallotherperquisitesandbenefitsasapplicabletotheExecutiveDirectorsoftheCompanyaspertheRemunerationPolicyframedbytheNominationandRemunerationCommitteeandexistingrulesandpoliciesoftheHRDepartmentoftheCompany.

TheBoardrecommendstheResolutionsetoutunderitemno.6and7forapprovalofmembers.

ExceptSmt.RajiShah,beinganappointeeandShriRakeshShah,ManagingDirector,ShriShaishavShahWholeTimeDirectorandtheirrelatives,noneoftheotherDirectorsoftheCompanyandtheirrelativesareconcernedorinterested,financiallyorotherwiseinthisresolutionsetoutatitemno.6and7.

TheCompanyisnotrequiredtoappointKeyManagerialPersonnelintheCompany.

STATEMENT PURSUANT TO CLAUSE (B) OF SECTION II OF PART-II OF SCHEDULE V OF THE COMPANIES ACT, 2013

I. GENERAL INFORMATION:1 NatureofIndustry AirCargoServices,exportandtradingactivities.2 Date or Expected Date of Commencement of

CommercialProductionNotapplicableasthecompanyhasalreadyundertakencommercialactivitieslongback.

3 In case of New Companies, expected date ofcommencementofactivitiesasperprojectapprovedbyfinancialinstitutionsappearingintheprospectus.

NotApplicable


4 Financialperformancebasedongivenindicators. (₹ in Lakhs)Particulars 2017-18 2016-17TotalIncome 38,391.62 36,604.10ProfitBeforeTaxandDepreciation(IncludingExceptionalItem) 822.73 580.89

Depreciation 279.79 246.85ProfitBeforeTax 542.94 334.04Tax 133.63 114.83ProfitAfterTax 409.31 219.21EquityCapital(facevalue₹10/-) 75,50,000 75,50,000EarningsperShare(₹) 5.42 2.90

5 Exportperformancebasedongivenindicators.(₹ in Lakhs)Particulars 2017-18 2016-17ForeignExchangeEarning - -ForeignExchangeOutgo - 33.23

6 ForeignInvestmentsorCollaboration,ifany.

TheCompanydidnothaveanyforeigninvestmentsorcollaborations.

II INFORMATION ABOUT THE APPOINTEE:

1 Background Details: Smt.RajiShahisholdingthebachelordegreeofcommerceandpossessingrelevantexperienceinthefieldoffinanceandotherrelevantareas.ShehadactedasaWholeTimeDirectorintheCompanyforthetermApril1,2016toSeptember28,2017.

2 Past Remuneration: Detailsofpastremunerationpaidismentionedhereinbelow:Period Remuneration PaidApril1,2016toMarch31,2017 Rs.17,09,000/-April1,2017toSeptember28,2017 Rs.8,54,340/-

3 Recognition or awards: NIL

4 Job Profile and her suitability: TheWhole-timeDirectordevotesherfulltimetothecompanyandshoulderstheresponsibilitytowardstheexecutivedecisionmakingandoverallfinancemanagement.ShealsoassiststheManagingDirectorintheoverallmanagementandadministrationoftheCompanyasandwhenneeded.

Herexperience in the fieldof finance,managerialaptitudeand logical thinking isbeneficial to theCompany forbringingthenewoutlookintotheBoardofDirectors.ConsideringthistheBoardofDirectorshasthoughtadvisabletocontinuetoavailherserviceasaWholeTimeDirector.

5 Remuneration proposed: Asdetailsgivenabove.

6 Comparative remuneration profile with respect to industry, size of the company, profile of the position and person :BeinginaserviceindustrywiththeresponsibilityentrustedbytheGovernmentwithnodirectcompetitor,nosuchstatisticsisavailableorcanbeframedout.

7 Pecuniary relationship directly or indirectly with the company, or relationship with the managerial personnel, if any: Smt.RajiShahdoesnotholdanysharesinthecompany.ShehasnopecuniaryrelationshipwiththeCompanytobereportedexcepttotheextentofremunerationdrawnbyher.

She is spouseofShri ShaishavShah,Whole TimeDirectoranddaughter in lawofShriRakeshShah,ChairmanandManagingDirector.


III OTHER INFORMATION:

1 Reasons of Loss or Inadequate Profits:-TheCompany’smainoperations i.e.air cargohandlingandalliedservicesarecompletelydependentontheimportsandexportsinandoutofthestatewhicharefurtherdependentonthe localandexternalenvironment.TheCompany isveryprone,eventothesmallfluctuations innationalandinternationaleconomy.

Moreover,thereisadirectinvolvementoftheGovernmentofIndia,throughitsvariousauthoritiesanddepartmentsintheoperationsofthecompany.ThehandlingandotherservicechargesaredecideddirectlybytheconcernedDepartment which naturally are highly customer friendly and hence render little room for the profitability for thecompany.Further,thereareprettyhighmaintenanceandoperationscostshavetobebornebythecompanymainlyduetoconstantlyincreasingGovernmentRoyalty,spacerentandothermaintenancecostsincurredforthelatesthighcapacitivemachineriesandtools.

Thetradingbusinessofpetrochemicals,bitumenetcisalsorestrictedtothenumberofindustrialcustomerswhichareunlikelytofluctuatemuch.Hence,thereislittleroomtoincreasethereachofthecompanytothewholenewlevelsinshorttomediumterm.

2 Steps taken or proposed to be taken for improvement: AfteracquiringthecompanyfromthethenGovernmentofGujarat,lotofeffortswereundertakenforredefining,restructuringandimprovisingtheoperationsoftheCompany.Thecompanyhasbeennowstabilizedandhasreachedtothenewlevelofgrowththankstothediversifiedbusinessestakenupandtheteameffortsofthenewmanagement.

Thenewaircargocomplexwith8Xcapacitytohandletheaircargoagainsttheexistingonehasbeenbuilt.Latesttechnology has been introducedand the operations has been completely redefinedandmademore customerfriendly.Themanagementofthecompanyconstantlylooksafterandcategorizesthenewavenuesofbusinessestoaddprofitability.Thecompanyhasalsobeenmoderatetoaggressiveintakingupthemarketingeffortstoincreaseitsoperations.TheCompanycontinuestofocusonthequalityoftheservicesprovided,upholdingofitshighbusinessvalues,increaseinitscostcompetitiveness.Thecompanyisexpectedtoachievenewheightsintermsofvolumeofoperationsandprofitabilityinlongterm

3 Expected increase in productivity and profits in measurable terms: AsalreadymentionedinPointno.1,beingdependentontheexternal factors intermsofthemainoperationsofthecompany, it ishardtoprojectthefutureoperationsandprofits.However,thereisastrongcontentanddedicationofthemanagementofthecompanytoregisterthegrowthintermsofincreaseinoperationsaswellastheprofitabilityofthecompanyonayeartoyearbasis.

By Order of the Board of Directors,

Chintan PatelCompany Secretary

August 28, 2018Registered Office: 2ndFloor,GujaratChamber’sBuilding,AshramRoad,Ahmedabad-380009.


GSEC LIMITEDCIN: U52100GJ1965PLC001347

Reg. Office: Gujarat Chamber s’ Building, Ashram Road, Ahmedabad-380009, Gujarat, INDIA.Phone: 79-2655 4100/2657 5757 Fax: 79-26584040

E mail: [email protected],

52ND ANNUAL GENERAL MEETING - SEPTEMBER 28, 2018 AT 11.00 A.M.

DP. Id* Name & address of the registered shareholder

Client Id*

Regd. Folio No.

I/We certify that I/We am/are a registered shareholder / proxy for the registered shareholder of theCompany.

I/Weherebyrecordmy/ourpresenceatthe52ndAnnualGeneralMeetingoftheCompanybeingheldonFriday28thSeptember,2018at11:00AMatShethSriKasturbhaiLalbhaiHall,GujaratChamberofCommerceandIndustries’Building,AshramRoad,Ahmedabad-380009.

___________________________Signature of Member/s/ Proxy

NOTE:AmemberorhisdulyappointedProxywillingtoattendthemeetingmustfill-upthisAdmissionSlipandhandoverattheentrance.*Applicableforshareholdinginelectronicform.


GSEC LIMITEDCIN: U52100GJ1965PLC001347

Reg. Office: Gujarat Chamber s’ Building, Ashram Road, Ahmedabad-380009, Gujarat, INDIA.Phone: 79-2655 4100/2657 5757 Fax: 79-26584040

E mail: [email protected],

Form No MGT-11(Pursuant to section 105(6) of the Companies Act, 2013 and rule 19(3) of the companies (Management

and Administration) Rules, 2014)

NameoftheMember

RegisteredAddress

EMailId

FolioNo./ClientID

I/We,beingthemember(s)of__________________sharesoftheabovenamedcompany,herebyappoint:

(1) Name: ________________________________________________________________________________________

Address: ________________________________________________________________________________________

Email ID: ___________________________________ Signature: _______________ or falling him/her:

(2) Name: ________________________________________________________________________________________

Address: ________________________________________________________________________________________


(3) Name: ________________________________________________________________________________________

Address: ________________________________________________________________________________________


asmy/ourProxy toattendandvoteonpoll forme/usonmy/ourbehalfat the52ndAnnualGeneralMeetingoftheCompanytobeheldonFriday,the28thSeptember,2018at11:00AMatShethSriKasturbhaiLalbhaiHall,GujaratChamberofCommerceandIndustries’Building,AshramRoad,Ahmedabad-380009andatanyadjournmentthereofandrespectofsuchresolutionmentionedbelow:


Resolution No. Resolution #OptionalFor Against

Ordinary Business

1 ConsiderandadoptAuditedFinancialStatements,ReportsoftheBoardofDirectorsandAuditors.

2 DeclarationofDividendonEquityShares.

3 Re-appointmentofShriSamirHanskumarMankad(DIN:00421878),whoretiresbyrotation.

Special Business

4 Appointment of Shri Maheswar Sahu (DIN: 00034051) as anIndependentDirectorofthecompany.

5 Appointment of Smt. Raji Shaishav Shah (DIN: 06893581) as aDirectoroftheCompany

6 Appointment of Smt. Raji Shaishav Shah (DIN: 06893581) as aWhole-timeDirectoroftheCompany.

Signedonthis________________________dayof________________2018

Signatureofshareholder:_________________________________________Affix

RevenueStamp

SignatureofProxyholder(s):_______________________________________

NOTE:1 ThisformofproxyinordertobeeffectiveshouldbedulycompletedanddepositedattheRegisteredOfficeoftheCompany,notlessthan48hoursbeforethecommencementofthemeeting.2 FortheResolutions,ExplanatoryStatementandNotes,pleaserefertotheNoticeofthe52ndAnnualGeneralMeeting.#3 Itisoptionaltoput‘X’intheappropriatecolumnagainsttheResolutionsindicatedintheBox.Ifyouleavethe‘For’or‘Against’columnblankagainstanyorallResolutions,yourProxywillbeentitledtovoteinthemannerashe/shethinksappropriate.4 Pleasecompletealldetailsincludingdetailsofmember(s)inaboveboxbeforesubmission.

ROUTE MAP FOR AGM HALL - SHETH SRI KASTURBHAI LALBHAI HALL

REGD. OFFICE2ndFloor,GujaratChamber’sBuilding,AshramRoad,Ahmedabad-380009,Gujarat,INDIA.

Ph.:+91-79-26554100/26575757/26585757Fax:[email protected]

AHMEDABADAirCargoComplex,OldAIrport,Ahmedabad-380003.Ph.:+91-79-22864747/5656,Fax:+91-79-22864646

INDOREDABHAirport,OldAirportBuilding,DomesticCargoTerminal,Indore-452005.

Ph.:0731-2977774

VISAKHAPATNAMC/oAndhraPradeshTradePromotionCorporationLimited,InternationalAirCargoComplex,Old

TerminalBuilding,VisakhapatnamAirport,Visakhapatnam-530009.Ph.:0891-2794199

RAIPURSwamiVivekanandaAirport,Raipur(Chhattisgarh)-492015

Ph.:0771-2418577

www.gsecl.co.in

contents7 52 nd annual report dear fellow shareholders, i take immense pleasure in sharing with you...

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