AKL SOFT AND INFOSYS(INDIA) LTD.

ANNUAL REPORT 15TH

2009-2010

AKL SOFT AND INFOSYS INDIA LIMITED

Regd.Office

325' PatelRoad' -64 Ramnagar'Coin.rbatore I 009'

Boardof Directors

Mr' V Jagadish- ManagingDirector Mr. AkashKadandale- Director Devraj - Director Siddhiah Mr. Peranaidu

Auditors

Ashit T Macwan Nr' B/14, Sthaptya, SterlingHospital' 80052 Gurukul,Ahmedabad-3

Bankers

CharteredGrindlays Bank Standard 509, D.B Road.R S' Puram' Coimbatore 641002

wherein the shares Stock Exchanges Of the Companyare listed : I Ltd Stock Exchange ' The Coirnbatore Buildings' StockExchange TrichYRoad,Singanallur' -'15' Coimbatore ' 2. The Stock Exchar.rgeMumbai 25'r'Floor.P J'Towers' Dalal Street,Fort' ' Mun.rbai 400001 3' The Madras Stock Exchangel-td' Building' Exchange P o s tB o x N o l 8 l ' L I 1,Second inc Beach' ' Chennai 600001

NOTICE
NOfICE'islrereblgivcnthattheFifieenthAnnua|GcneralMeetingoItlremembers0ithe'AKL S e p t e m b c2 0 1 0a t 1 00 0 a m a t r. I s o F T & | N F O S Y S N D I A L I M l l h D $ i l l b c h e l do n l 0 ' r ' 009 to Coimbatore 641 Ollice of the Cornpanl'at 125' l'atcl Road' Ran.rnagat' registered the transact lblloriing business' ORDINARY BUSINESS: l.lorecctr'e.cons|oefandadopttheprotltandlossaccottntol.the(.ompanlf.orthel-ear endedonSl'.March.20l0andBalanceSheeraSatthatdateandL)irect0r.SRepofiand ' thereon Audilors'RePort 2.ToAppointal)lrectorrnplaceofMr'V..lagadishlrhoretiresb}rotationandbeingcligible. h oll'ers irnself ibl re-appointment' 3. -l andflx thcirrcmttneration the o appoint Auditors
Bv ordctof thc Board

't 20 Date : I SePtember. I 0 Place:Coimbatore

i S d / - V . J a g a ds h
/ a, rLr \r

M a n a g i n gD i l c c t o r

NOTES I. A I T H F 'A B O V E M E L ' I I N GI S A M E M B L R E N ' | I I I , L D I ' O A T I ' E N DA N D V O I ' F EN'II.I.L,I]DI()APP()INTAPROXYI.oA'I'TLNI),ANDV()l.EINSft]AD()lr N O T B I : A \ { L M B I - ' RO F l t l L H I M S L L I ' 1 H L R S F .A-N-D S U C l l lP R O X Y N E L D I I COMPANY.INSTRtINIENTOFI.Ilt]PROXYINoRDLRI.()BI]EtjFI]C.TIVt]Mt]Sl. BERI]CLIVEDBYIIItjCOMPANYNOiLESS'|HAN4tllIOL]RSBEI.ORE'IHL to are thc n'leeting requested hand of ies lNG. Ihe mernbcrs/prox desirous attending MEE.f r mr"etingentte at slip overtheattendance duly fillcdin andsigned thc closed will renlain Booksol'the (lompanv Transf'er and Share ol The Register Membcrs ( 0 d pt t t i o m2 , 1 ' r ' S e 2 0.1 0 o 3 0 ' 1 ' S e p t . 2 0 lb o t h a l s i n c l u s i r c ) '

2.

].Asameasurcol.ecol,lolT]\.AnnuirlRepilrtsrvillrrotbcdistributcdatthenecting.So. rcportwith thcm to the annual to are mcmbers rcquestcd brrngtheir copl of Annual Mecting. General

I A I : o r A K l . S O I : T N I ) I N I : O S Y SN D I A t ' T D ' .
Placc:Coirnbatore D a t e: 0 l ' ' S e P t e r n b e r . 20 l

: i:fi'"'

Directot'

DIRECTORS'REPORT To. Nlembers. of ral AnnualGene l!{ectirrg the Compan;l'ifieenth in havcpleasurc presentirrg Your Directors lear cndedon il'' March. for ofaccounts thc financial with the Auditedstatements together 2 01 0 . PERFORMANCE one a The Financiallear. underrevieu'rvasparticularl)' verv unf'avorablc to the softlvare to adlersellal'l'ected the IndianSoftt'are economies o1'the\\estern industrl. lhe slowdou,n hopethatin the current a in )'carthecompan) industr,v'suffered lossfbr the year.Yourdirectors perfbrmarrce. will bc ableto posta bctter DIVID|jNT) couldbc recommcnded. br In vie\\'ol'thclosssuf'tcred thc companlno dil idend DEPOSITS 58A of ol-seetiorr uithin the treaning an1, has 1he Company not accepted Fired Dcposits. Act. theCompanies 1956. DIREC'I'ORS and Meeting Cienelal AnnLral at is Mr. Akash Kadandate retiringb) fotation the ensuing bustness is a successf'ul lv1r. ollcrs himscllftrr reappointment. AkashKadandale beingeligible uill bc beneflcial irr llis in haringtearst'rfexperiencc managenrcnt. continuation thc board man ization. t0 theorgan AUDITORS resigncd Auditors ol'thecompanr medabad. Accountants.Ah Apaji Anrin& Co..Chartered N{is. reasons \1/s.Ashit L l\{ac\\an and ofpersonal o1'the compan\on account auditors as statutorv meeting the ol at ol'thecor.npan\ the cxtraordinalrgcncral auditors as \tasappointed statutor) Meeting. Gencral Antlual tlf ensuing theconclr-rsion l'heyxill holdolllcetill compan)'. CONSERVATION OF ENERGY, TECHNOLOGY, ABSORPTION AND FOREI(;N EXCHANGE EARNINGSAND OT]T(}O : No$' ne$' actir. there$'asno manuf'acturing itl in the company. Duringthc yearunderreport earnings outgo. or or and has technologl, bcenadopted absorbcd therewasno fbreignexchange OF EMPLOYEES UNDER SECTION 217 (2A) OF THE COMPANIES PAITTICULARS ACT, 1956. 'l'here 217 (2A) andas b1 lalling$ ithin the limitsprescribed thc Section areno cmplolees is of the undcr provision thesaidseclion notattached. ofstatement the such requircment

DIRECTORS OF EMPLOYEES UNDER SECTTON2r7 (2A) OF THE COMPANTES ACT, 1956. Theboard directors ol hereblconfirrn that: l. In the prcparation ofthe annual accounts. applicable the accountirrg standards been have follor.r cd. policies reasonable prLrdent areconsistentlr' 2. Theaccounting are and and folkrucdto gire a trueandtairvieu ofthe state o1'alfairs o1'the company. 3, Propcr sulflcicnt and carcis taken themaintenance lbr ofadequate accounting records fbr saf'eguarding assets thc compan\ and fbr prevention tl1' and detection tiaud or of irrcgularities. 21. Ihe arrnual preparcd a 'goingconccrn' accounts havebeen on basis. No*' the said auditors retiring uith the conclusion thc cnsuring are of Annual General l\leeting areotfcring. and themselves rc appointment. saidauditors tbr Thc have prcscribcd conflrmed theirappointrrent rrouldbc u'ell uithin the lirrits b1'Scction 224 ( I -B) of thc Companics 956. Act. I ATJDIT OBSERVA'|IONS As regards observation the nrade Auditorsregarding by non-recoverability loansand o{' sundry debtors. steps beirrg arc takcnto record sarne. tlre are to the of . Steps alsotaken regisler landin thename the( ompanr REPORTON CORPORATEGOVERNANC]E q()\crr]Jn(jca psrt()1'Annual on is Report and is annexed is Rcport [)irector corp()ratc of annexure A.

S M A N A G E M E N TD I S C U S S I O NA N D A N A L Y S I S : Report Management on Discussion Anallsisis annexed annexure-B. and in AKNOWLEDGEMENT Your dircctors *ish to thank the (lovernment agencies. authorities and Departments. ees bankers. customcrs ernploy 1brtheirsLrpport co<rperetiun. and and Forancl behall'o1'the on Iloard t tqly-\ Sdi-V..lagadish Managing I)irector

Place:Coimbatore Date : ;1[ltat

ANNEXTURE-A REPORTOF THE DIRECTORSON C]ORPORATE GOVERNANCE 'I

he Securities and F,.rchange Board ol' lndia (SEBI) constitutedthe Cr:tnnittee on Corponte Govcrnance promote raise standard to and the ol'Corporate Governance listcd of cornpanies. The Committec has made recommendation the composition the boardof dircctors. on of audit procedLrrc cornm ittce. board cle. 'I'hc companl'has takennt:ccssar)' to compl\ riith the clause .19ol'the rcvised steps of Listing Agreement givenbelorr' thc rcpost is ol'theDirectors theClorporatc on Governance. REPORTON CORPORATEGOVERNANCE I. COMPANY'S PHILOSOPHY ON CODE OF CORPORATEGOVERNANCE: The Cornpany believes f'unctioning a transparenr in in manncru,ith the basicphilosophy beingto enhance Sharcholder the valLre. kccpingin rnindthe necds and interest of'other stakeholders" corrpliance in thereol.The lbllo*irrg inlormationis placedbclore the shareholdcrs. I . B O A R DO I i D I R F - C T O R S

Nameof Director ShriV. Jagad ish

Shli AkashKadandale

L alcgof)

N o . o l B o a r c l ,\nended Meeting

l.astACiM Attendance Yes Yes Ycs

Chairnran D ircctor Director'

5
) )

5
)

ShriPcranaidu Devraj

No Directors having are f'hairmanship ofnrorethanfiveconrpanies uhcrc thel'are director. of Dircctor S h r iV . . l r : : r d i : h Shri .{kashKr,.lendalc Shri Peranaid Del ra.j u (No. Otherl)irectorship of Companl )

In linerviththe requirements o1'the codeol'thccofporate thc of sovcrnancc. board directors comprises threemembers. of Ilolever. Your C'ornpanl trling its levelbeslto accornplish is therevised clausc-.l9 listing of agreement.

AL]DI'I' ]OMMI'I'TEh C 'I'hc auditCommittce f'ollou non-excculir Dircctor has ing c

I --

Peranaid Devra.j u
-l

'I'he scope committee of includes. a Rcr'ie*ofcompanr's trnanciar reporting proccss the rinanciar and statcment. b. Revieuinternal control svstems f'unctioning internal and of :ruclit pr.cess. c. Post auditrevieuri ith statutor\ audititrs. Duringthe -"'ear underrevie*. Audit conrmittec met lbur tintesrilrereall thc memlrers attended meetings. ] . R I ] M U N E R A T I OC O M M I I ' T E E N : DLrring Vear. remuneration paidto Director. Remuneration the no uas So. conrrnittee not has been sti(utcd. con . 1 .S H A R E I I O I , D E RC O N I M I T I ' F - E S' I'hccorrpanr' complicd requircment has ;19 thc o1'the clause o1'thcListingagrecment, Mr. AkashKadandale. Dircctor heads committee. thc 'I'he composition shareholders in'estors' of cum grievance committce astbllor.rs: r.r.as

f-xamel

Dcsignation

O"*ui $ri n.r*riar.,

l---

M;.b"r.
Chairman

ShriAkash Kadand le a L,.

During )car.thecompan) notreceived complaints. the has an\ The Share receir,ed transf'er appror,ed 30"'o l' theeach lbr is on monthandaregiveneffict b1 thc Registrar Sharc and TranstirAgent.
f.

G E N E R A IB O D Y M E E T I N ( ; ,
I - 0 c eitu n

l0/09i2007
315.Patel Road. Ranr -6.11009 Coirlbatore

There no spccial are resolr passed thecorrpanl b1 through posral ballot an1ofthc at above annual ,"n"ru,,n"",llins

6. qrs!LQ-rLl8!s: ,^, re.-ierv. qxanertv rhe Lrnaudireo. $ere resurrs taken recortt on ?#,ili",,X.;fil,;:;1;l by. qu,rrrcr Fro,u,"eve, i,;;;;;'i +r Li,,i"g'i;J.:":;:'j,"fnT";*""t,i:;:":,'": lla1se r,"." "f rrre,r:oncernecr exchanges nrrn'.i,..ir";J srock r"'ir,,"'""""p.dil;;iii:yr1o

(B) Compan). tbllorled has accounting stantlards diligentl_,. (C) Fufther. cornpan_tin theprocess I1.ing is oi. dor.r riskasscssntenl n systcm. (D) lrurther. compan), not receir,ed tLnds has an1 through caprtal markettlurjnqthc ).ear. (Fl) fransaction r.vith relate properll

discussed al lengrh :r:linffitecn ,},

disclosed notes accounrs in to and

( F ) Managemcnt discussion anarrsis and report attachcd andtormspart is to of thisreporl. ( G ) Irurther' Shri V 'lagadish. Managing Director of'r'e conpanr as certiriecl board to of directors thecontpanl. of regarding' r ' r P r r d r r q u u t r - c l a u(s e vrrrs L compliancel ru[-l_.fuur. ) o f c l a u s e ' 1 9 o of s v of listing agreement.
'fhe

c o m p a n _a r e t r a n s p a f e na n d \ t investor liiendll.Sreps being ar.e taken aisplf ,n"-.n,fu.a," to ..ru,,, o n t h e E D I F A R & Corporatc rvebsite. r.ihich bcing is cleveloped.

m e a n so f c o m n r u n i c a t j r ) n e t r \ e c n b t h e S h a r e h o l d e ra n d s

8. GENERALSHAREilOLDTTRS. tNFOR]VIA ilON Annual General Meeting Date :30,109/2010 (Date" Time& Venuc) T i m e: 1 0 . 0 a . r r . 0 Venue: i2.5.patelRoad. RamNagar. [.inancial Calendar Dateof BookClosLrre pavmenl Dividcnd Date 9. MANAGITMENT T l t ceo m p r n lr ri l l e o r n p h ri t ht n el e q u t r e m e n t s r o f t h es u b - c l a u Ve l . c l a u s e : o l9 R c r i s e d s o 1 . L rstrng Agreemenl. Coimbarore-(r4 I009 I ' ' A p r i l2 0 0 9r o j I ' r M a r c h 0t 0 2 fiom 2.1'r' Sept.20l0 30rr' to Sept. 2010 (13oth dar.s Ius e) inc ir No Dividend lared. dec

Date \ltlL"\: :
Place Cloimbatore :

F o r a n d O n b e h a l l ' o ft h e B o a r d o l l ) i r e c t o r

V..tagadish f_-hairrran

"

s_,J:t:.

ANNEXTT]REB MANA(;EMEN'DISCL]SSION D ANALYSIS I AN

t . OverallReview :
'I-hc perlbrrance overall dLrring tlnancial the rcar 2009- lras l0 becn satislilctor\. FinancialRevierv : Total turnor.er the vcar endcd3I" March.20l0 rvasRs.50 Lacs.This dccrease for ,,vas r n a i n l o n J c c o u n l) l T e d u c l i onr r i c e s . r r irp
J.

InternalControlSvstem and their adequacv: (ionsidering sizcofthe compan). the has srstemof internal control )our corrpanv adcquate to providereasonable assurztncc assets sal'eguarded protcctcd that are and liorn unauthorizect useor depos ition.

4 . Business Fl,nvironment :

ThePerlbrmance thecompanr theycarunder of lbr revierr rvas satisf'actorv.

5. Risk and Concern : T h e b u i l d i n g . p l a n t a n d m a c h i n e r r ' .r , e h i c l ea n d s t o c k s o l ' t h e c o r n p a n r a r . c a d e q L r a t e l ) i ns u r e d .

Cautionary Statement: Statements this reporton nlanagement in Discussion anallsisrrav be fbrvnard and looking statements rrithinthe meaninq applicablc of securitr' lawsor rcgulations. Thesc statements are based certain on assul.nplions expeclations and o1'future evcnts. Actual results could lro*eler. ditfir nlatcriallrliorr thoscexpresscd irnplicd. or lrnportanl fnctors that coulci rrakea dif'fbrenl the c'ompan\''s to operations include globaland domestic demand supply conditions. linishedgoods prices.ra$' malerialcost and ar.ailabilitland changes in government regulation and tax structure. economic developrnent riithin India and thc countries rvithwhichthe companv busincss has conlacts othcrf'actors al'td suchas lrtigation andindustrial ions. relat I'hccompanyassLrmes responsibilitics respcct lbnlard lookingstatcments no ghich in of rrav be amended nrodillcd lutLrre thebasis or in on ofsubseqLrent dereloDnrents. intbrrnation ol cvents.

Place:Cloirrbatore

BY ORDF,R ]'HF BOARI) DIRIIC]TORS OF OF 7 r"""t r \

Darc tl tl't4c :

v.lugolirn
C'ha irrnan

CERTIFICATION MANAGING BY DIRECTOR'TO I'HE BOART) r' Mr' V 'ragadish. Managing Direcror thcAKr- soFT & INI-OSys of INDrAl_TD. certifv thar
l. I h a v er c v i e w e dt h e f l n a n c i a l s t a t e m e n t f L , rt h|e e a r a n d t h a t isb r r l c t o t h e b c s to f . m l , k n o $ I c d g e b e l i e f: and a. lhese statements o not d c o n t a i na n ! t n a t e r i a i l v n l u f r e t o r C ') n t a i n\ t i t t c ne n t st h a t l n r i g h tb e , r . , i r r " u d i n " ' . g" b . T h e s es t a t e n t e n tg i v e a t r u e s andlirir view ofthe stat conkrrrnitl,. in alj rnaterial respccts. ri.ith the eri s t a t e m e no r o m i t t

anl' matcrial

resurrs .rhc of operat;ns cash and florvs. n"r".;"1"rtLl,lil::t[::"il::";,il*:,i;

accounrins

2. Theseare.to thc besl of.our knouledge and beiiet.. transactions no entcrcd into bv the during rear ri,hich f.raudutcnr. rhe are iltegat violatir.,e rhecompanr.s or of code ::ilH: of. l acceptoverarr responsibilit) the compan\'s fbr intefnar conlrorsr,stcm and financral reporrrng 'fhis is monirorcci b-r rhe irrernar audir llnction. ,.,hi; .;.,;;;,;".r", *. e x a n r i n a t ia n de r a r u a t i o n ' t h e on o1 a d e q u a c l , u n d . f t b . t i u " nI"n t e r n a r rs. a u d i t o r k s* i t h a r l * the levels nranagement statutory of and auditors reports and signitjcant issues the Audit to Ctommittee rhelloard.l.he autlitors of anduraii .oln,r'i oran1'correctire actiontakenwith regard signiricant ro deliciencies ",]0,r'j;;i:ltrr1.:I;r'sed 21. I indicate theauditors to andto theauditcommittee : a. Signilicant changes internal in control or,crfinancial leponrng ciLrring lear. the b. Sign iticant changesn a c c o u n l i n g l i c i ed u r i n g t po s t h er e a r ;
c . l n s t a n c eo 1 ' s i g n i l i c a n i a u d s lt hare ber manasemenr ororher empt.lees,,rho hare r,r",i,."ll.'"il'li..Jlllillli:i,ff":; controlsvstem oi.rihich rrc

principrcs incruding Accounring Stancrards. ,,0n,,.,b;:'i:t*.*:::'il:, ffiil"t

over flnancial reporting.

Horrever. dLrring \ear there the *,ereno such changes instarrces. or

o"t",

Place:Lloimbatorc M a n a g i n gD i r e c t o r .

/rfilr-'v

J.\-

DECLARATION BY GOVERNANCE

THE

MANAGIN(;

DIRECTOR ABOTJT

CORPORA.I'E

I. Mr' V Jagadish. c'hairman r\Ianaging & Director AKr- Sofi& Inrosr rndiaLimitecl oi s herebl, contirnr pursuant clause I Xd) of'thelistinc to 19( agreemenr that: l Theboard directors AKt. Sofi& Infbsys of of IndiaLirnited laidrlo*n a codco1'concjuct has hasbeen placed thecompanr,'s on *ebsite.

2 All themembers the board *c, as scnior of as managemcnt personar havecornplied rvitnthe saidcode conduct thc yearended I ', March20I 0. of iirr .l
I ' l a c e :C o i m b a t o r e

Dat"'lltl*1--

V..lagadish

{'t'laL'L

L l h a i r m a n M a n a g i n gD i r e c t o r &

AUDITORS' CERTIFIC]ATE ON CORPORA,'I-E GOVERNANCE 'I o. 'l he Mcmbers o1' Akl sofi& Inlirsvs IndiaLirrited we haveexanrined compliancc the conditions the of o1'corporate Governancc AKL soft & b) InfbsrsIndial-irritedlbr thc 1'ear ended Marchil. 2010.as stipulated clause49 of the on in listing Agreements thc saidCompanv of u'iththeStock lJxchanges. Thecompliance ofconditions ofCorporate Govcrnance thercsponsibilitl is ofthe management. Our exarnination limitedto a rcvier.r thc plocedures implemenlation was of and thereol' adopted b; the Corrpanl fbr ensuring compliance the conditions ( orporare tlre ol' ol' Ciovernancc irs stipulated the said ClaLrsc. is neither audit nor an expression the opinionon the in It irn of flnancial statement the C'ompanr. of In our opinion andto thc bestol'our infbrmation according the explanations and to givento us and based the rcpresentations on madeby the Directors and the Management. cerlifi-that u'e Companlhascomplied ith the conditions Corporate r.i of Governance slipulated Clausc as in 49 ol'thcabove-nrentioncd L isting Agreement. We state thatsuchcornpliance neither assurancc to the future is as as viabilityof thc Companr nor the elliciencrot ef'lectivencss r.rhich managelrlent conducted aftairs r.r ith the has thc o1'thc L0mpan\.
P l a c c: A h r n e d a b a d

Date ; j,-l56;WfD :

REPOItT Atrl)l'l'OR'S
To The Mcmbers A K l . S o i t& I n f o s l s( l n d i a )L l d Coimbt0rc . a B S o h W e h a v ea L r d i t etd e a t t a c h e d a l a n c e h e e t f A K L S o l r & I n l b s l s( l n d i a )l . i n r i t c dC o i m b t o r e s a t - l l ' ' M a r c h . on with the Proflt & LossAccounttbr the l ear enclccl thatdateanncredthereto and repo( thitt: 20 I 0 together g ) T re i s e W e c o n d u c t eo u r a u d i ti 0 a c c o r d a n cu ' i t ha u d i t i n g t a n d a r d sc n e r a l l a c c e p l e dn I n d i a . h o s cs l a r l d a r d s q u i r e d are assrrrancc about$hclher the llnancialstatcnlenls ftee of that we plan and pcrlbfm tlte audit to obtainreasonablc a s g . e o m a t c r i an i s s t i r t e m e nA.l t a u d i t i n c l u d e s x a r n i n i n g .n a t e s tc h e c kb a s i s e r i d e n c e u p p o r t i n t h e a m o u n i s n d l l p n t l a h m d i s c l o s u r e sa d eb 1 ' m a n a g e m e n ts.w c l l a s e v a l u a t i ntg eo v e r a l l i n a n c i as t a t e m e n tr e s e n t a t i oW.e b e l i e v eh a t a basisfor our opinion. our audit provides reasonable L (Auditofs Report)Order. I9lllJ.issucdb) the Ccntral and other Companies As requifcdb1 the Nlanulacturing a A . 2 2 7 ( . l A ) o 1 ' t h c o n p a n i e s c l . 1 9 5 6u e g i v e i n l h c a n n e \ u r c s t a t e m e n i C it o G o v e r n m e nn t e r m s f t h e S c c t i o n 4 specifiedin paragraph & 5 ol'the saidorder. on the rratters I to funher to oul corn ents in the anne\urereterred in pa|agraph abole. q.- fcport thal : a. e a a ' s W c h a v eo b t a i n e d l l t h e i n f b r l l a t i o n n de x p l a n a t i o rwlh i c ht o t h e b c s to f o u r k n o w l e d g a n db e l i c fr v e r e the nccessar)'fbr purposcofour Audit. In our opinion proper books ofaccounts as requiredb1 larv harc bcen kept by the companyso far as it ofbooks ofaccounts. f-rom our cxamination appears \ I n o u r o p i n i o nt h e B a l a n c eS h e e ta n d P r o f l t & l - o s s A c c o u n ta f c d r l $ n u p i n a c c o r d a n c\c i t h t l r e s re t I a c c o u n t i ns t a n d a r d s l c r r c do i n S e c t i o n I I ( i C ) o i l h e c o n l p a n i eA c t . l c ) 5 6 . g d.

l.

b.

rrith the booksof and Protrt& LossAccounrdealt\\ ith b) this rcporl are in agrecmcnt lhe Balance Sheet - anclSundrl Debtors to amounting Rs. 76.2'1.830 rabilit-v' loansand advances of subiect lccove to accounts o a m o u n t i nt g R s . I . 1 . 1 9 . 9 7 2 - w h i c h i n o u r o p i n i o n n o t r e c o v c r a b l e . t h e l o s s i s u n d c r s r a l e d t o t h e e x t e n t o P a s R s . 9 0 . 4 ' 1 . 8 0 2a - d t h e s a i d a c c o L r n t o g e t h e r v i t h A c c o u n t i n g o l i c i e s n d n o l g i v e i h c i n f b r m a t i o n ,n S t r a b 1 t h eC o n r p a n i cA c t . I g 5 6 i n t h er n a n n es o r e q u i r e d n dt h c B a l a n c e h e eg i v c sa t r u ea n df h i r s required '' of the stateof the Company'saftairsas to 3 l March.20 10 and thc Profit& LossAccounlgi\,es a true and l'airview ofthe lossfor the \ear endedon thai dale. b a ec i o O n t h e b a s i s l ' u r i t t e n f e p r e s e n t a t i orn s e i V eido n r t h c d i r e c t o r s n d t a k e no n r e c o r d s i t h c B o a r do l as from being appointed Directorsrve rcpofi that none ol'thc directorsof the compant are clisqualilied 19 cs ol c l d i r e c t o r s ' t h e o t n p a nu n d e r c l a u s e ( g ) o f s u b - s e c l i o n ( l ) o f s e c t i o n 2 T ' l o f t h e c o r n p a n i5 6 A c t .

t n n I n o u r o p i n i o na n d t o t h c b e s to f o u r i n t b r m a t i o a n d a c c o r d i n go l h e e x p l a n a t i og i v c n l o u s t h e s a i d ancl givesthe infi)rmation requirecl givesa true & fair vic\t. subiect thc notcsthereon to accounts (i) (ii) 1 a o s S t I n t h ec a s e f B a l a n c e h e e o f t h e s t a t e l a f i ' a i r o f t h e c o m p a n ) s o n 3 l ' ' M a r c l l . 0 1 0 . o AND o l tf o l n t h cc a s e l l ' r o f l t& l - o s sA c c o L r n os t h e l - o s s b f t h e) e a r e n d c d n t h a td a t e . For Ashit L Mac\lan Accountants Chartcrcd

. .lo , ..:
Place:Ahmcdabad D a t e: : ' j . . . i t . { C

( A s h i tT . M a c w a n ) Proprietor M c mN o . 1 0 7 8 9 I

ANNEXTIRE THE AUDITORS' TO REPORT

Annc\tlre to the Atlditor-s' Rcport ref'erred in paragraph ol' oLnrepon of cr,enclate thc acuo..rs to I 01 l i r r t h e1 ' e ae n d e d n 3 r " M a r c h .2 0 r 0 o | A K t - S o r i& I r r r b s _I"n s i aI - i m i t e d . o r -d J I ' h eC i o m p a n h a s n t a i n t a i n c d r o p e rr e c o r d so s h o u 'l u l l p a r t i c L r l airn c l u d i n g y p t s q u a n t i t a t i vd e t a i l s e a n d s i t u a t i o n f i t s F i x e dA s s c t s . i x e dA s s e t s f t h e c o m p a n \ . h a v b c c np l l s t a o F o e b l verified y the m a n a g e m e n t dn o d i s c r e p a n c ya s n o t i c e d . an u N o n eo f t h e F i x e dA s s e t s a sb e e nr e v a l r r ec l u r i n uh ev e a r . h d t I n o u r o p i n i o nt h e t e r l r s a n c ic o n d i t i o n s n * l r i c h l o a n sh a v e b c e nt a k e n o fiurn the firrrrs other & p a f l i e sl i s t e di n t h e l e g i s t e rn l a i n t a i n c d n d e rs c c t i o n3 0 1 a r e n o t p r i n a u f a c i e .p r e . j L r c l i c io t n e t al interest the compan\'. of L I h e c o n l p a n y a s g i v e n l o a n s1 . ,t h e c o n r p a n i eu n d e rt h e s a m em a n a g e n r e n t h s w h i c h i s p r i m at a c i e p r e j u d i c i a o t h e i n t c r e so f t h e c o m p a n r . tl t

5 . T h e c o m p a n lh a sn o t g i V e l l o a nt o i t s e n t p l o v c ets c r e l b r ch eq L r e s t i o n h t o f r e p o r l i n gt d o e sn o ta r i s e . i 6 . I n o t t ro p i n i t l t & a c c o r d i n qo t h c i n f b r n r a t i o& e r p l a n a t i o nq i r c n [ o t r s r t n s t h c r ea r c a d e q u a tie t e r n a l n c o n t r o p r o c e d u rte c o l n t n e n s u r au e h t h e s i z eo f t h e c o r n p a n & n a t u r e f i t s l o tit r o b s s i n e srs i t h r e q a r o r l o p u r c l ) i l \ (o 1 ' : r L , r c s r r r r r r r a t e r i a l st.c m . t r u d c d i r r c l u d i n lc r , t p { , t | c i ) t s . . i plr,,f l* rrracl,ilicrr. c r l l r i p D t c & l r r l l t c r . r . . c l $ i t l rr c g a r J o t l t e\ a l c . o f g r r o r j , ll s t 1 . l n - t l u r p i n i o n& a c c o r d i n go t h e i n f o r t n a t i o& e x p l a r r a t i o g isr , e n o o t n n t u s t h et r a n s a c t i ofn r p u r c h a s c b ol ra"" nlaterialtrade itl pttrsuancc ofcontractsofagrecnenti entcrecl the registcr& aggrcgatrng ill duringthe vear to Rs. 50.000/-or more in respcct cachpar11 of rra."e bcen ma.re-at pri".-rihi.h or. r c a s o n a b i n r e g a r do t h e p r c r a i l i n g l a r k ep r i c c . le " t n t

8 . A s c x p l a i n e do . s . t h e c o r . p a n )h a sr c g u r a p r o c e d u rr o r d c t e r n i n i n s f u n s e n , i c c a b r e t r c o & damaged
stores. raw nratcrials linishedgoods& the samehasbeenproperry & deartri ith in the acco.rts. 9 . D i r e c t i v e is s u e d r t h e R e s e r l eB a n ko f I n d i aa n d t h e p r o v i s i o n f s e c t i o n s b o 58-Aofthe Cornpanies A c t . 1 9 5 6a n d r u l e sf i a n r e dt h e r er r n c e r r c n o t a p p r i c a b l a s t h c c o m p a n \ a e hasnot acccpted nr a p r r hi ed e 1 o r i t . . l 1 0 .A s t h e p a i d L r pS h a r e a p i t a lo f . t h ec o m p a n \a n t i t h c a r ' e r a g a n n u a t u r r o . " e r C e l o f r h ec o r n p a n d o e s ' n o tc x c e e dh e p r c s c r i b c ld n r i t t h c c o l n p a n ) . d i n o t r c q u i r e o h a ' e I n t e r n a i t r . d t Audit. | . A c c o r d i n go t h e C e n t r a G o v e r n m e n ta sn o t m a d eo r d e ru n d e rS e c t i o n 0 9 ( t l h 2 I ) ( d )o f t l r eC o m p a n i e s A c t . 1 9 5 6 b r t h e i n d u s t r ri n r v h i c h h e c o n t p a l t i\s o p e r a r i n g . f t

12. A c c o r d i n go t h e i n f o r n r a t i oar d e x p l a n a t i o n s v e nt o L r s o u r r d i s p u l ea r n o u np a l a l . r l e t rn gi n d t

in respcct of InconreIax. SalcsTax. Custon I)Lttr anclexcised u t r u e r e o r r ts t a n d i na s g at il" \{arch.20l0 c \ c e p tt h e f i r l l o l i n g .

t i . A c c o r d i n go t h e i n f o r l r a t i o n n d e x p l a n a t i o n si \ e n t o u s a r r da s p e r t h e r e c o r d s a i 1 e r a i l a b l e t a g m a

to rus Pro'ident Fund Scherre is irrlroducedby the c.mpanl, and conrpanr has depositedbotn e m p l o l e r s ' c o n t r i b u t i o n e m p l o l , e e s ' c o n t r i b u t iro,nt h i n p e c i f i e t i m c . & i i s d

t 4 . Accordingto tlre informaticttt explanations and gi\en to us rro personal c)ipenses the emplol,ees of or

dircctors llave been charged Io revenue accoulrts.other than those pavabre under contractuar o b l i g a t i o n r i n a c c o r d a n c c i t h b u s i n e sp r a c t i c e . o l s

( ( o ) o f s t r bs e c t i o n l ) o f g u i t h i n t h e r n e a n i t ro f c l a u s e l i s n o t s i c k i n d u s t r i ac o l r p a l l ) 1 5 .1 h c c o r n p a n y Act' I985 l o , , r f a n i e si i p e c i a l P r o v i s i o n s ) J s e c t i o n o f r h eS i " f t n a u r t n o t t h c r cr r e r e t c o m p a n \u e u c r c i n l b r t n c dh a t ac & m a n u f a c t t t r i n g t i v i t )0 1 ' t h e t 1 6 . I n r e s p e co f t h c t r a d i n g on itl booksdoesnot anse t't"'qtt"tiir" t.tfptovidiriglbr loss goodshetrce no damaged

F o r A s hi t T M a c u a n - ' i--:'.---{harte red Accountants ,

i; . |
:

'\."'\ -rr\-11 ,-'

;t:l

l'lacc : Ahncdabad Date:o1 .'. ,.'0

'r.. \.

' . . ( r A s h iT . M a c \ a n ) t :r' Proprtetor M e r nN o ' 1 0 7 8 9 1

AKL SOFT & INFOSYSINDIA LIMITET) B A L A N C E S H E E TA S A T 3 l s t M a r c h . 2 0 l 0

DESCRIPTION
SOI.JRCES FT,INDS OF : Shareholders Fund Share Capital Reserved Surplus &

SCHEDLILE

A sa t 3 l s t March,l0

As at 3lst March, 09

TOTAL RS, APPLICATION FUNDS: OF

L ixedAssets InVcstnrents & CurrentAssets.krans Advances Current Assets SundrlDehtr'rs Cash& Bank Balance Loans Adr rnces & Less:Current Liabilities Provrsrons &
)

2.79.02.250 0 2,79,02,250

2.79.02.250 0 2,79,,02,251)

9 45.1.116 0

50.71.42u
0

-)

4 5

l9.l9.97i I 8.67.,108

l4.l9.972

I .21 .60.025 1.59.47.,106 6 9 " 78 5

14.59.658 I .21 .60.025 1.50.i9.655 6 9 . 78 5

liabi ties Current

Provisions Assets Net Clurrent Miscellaneous pr-nditurc Er

1.58.77.648 7
75.0-5.4-56

1.4q.6().fto7

T0TAL RS,
. \ s p e r o u r l { r ' p , r f lu l ' e r c r r d ; r l cl l l J e l l c J i

2,79,02,250

78.60.925 2,79,02,250

For AshitT. Macwan Accountants C hartered

l F o rA K I S , ' f t& I n J h s rrs n J i r t I t c l

,L,
2,/ \ ,t"

t ./

(AshilT. Macu'an) Proprietor Mem No. I 07891 Place: Ahrledabad Datc:.';,..( r"0

Dircctor

Place: Cloirrbtore Datc : l/lf L.to

AKL SOFT& INFOSYS INDIA LIMITEI) PROFIT& LOSSACCOTJN'I FORTHI,tYEAR ENDED-llsr March,20l0
DESCRIPTION INCOME:
I nconte

SCHEDTlLE

As at - 1 1 sM a r c h ,l 0 t

As at 3l st March,09

Othcr Income

50.00.000
i5 000

EXPENDITURE:
Opelating expenses Financial Charges DepreeiaJion

TOTAL RS
9 l0 TOTAL RS

50,-35,000

0 10.500 1.750 0 12,250

.+0.01.1.+ .I
l.-i.r.856

5.-r2.2ri I
16,,67,,281
.i.67.71c)

Nct Profit lronr operation befbretaxa on Provisionlbr Taxation Proflt After Taxation
R a l a n e e l l i o m p r e ri o L r : b lclr

- r2.250
-12.252 -73.17.684 -73.29.9i4

3 . 6 77t 9 . -7329931 -69622) 5

Brlanccin profil& l(rss ecount

As per our Reponof evcndate attached

F o rA s h i t l . M a o r a n Chanered Accountaltts -\
I

F o I A K L S o f i & I n l i r s l s( l n d i a )l . r d

'f ( A s hi t . M a c r a n ) 1 . Proprictor
!!. i

,.

i'

M e mN o . I 0 7 8 9 1 Place:Ahmedabad D a t c : . r - , .! i ) - , r i O Place:Coinblore Date : .j I tf zara

SCHEDULE ANNEXEDTO BALANCESHEETAS ON3lst MARCH.2010 A sa t 3 l s t As at 3lst March, Description March,0 l 09

Schedulc ShareCapital I Authorisccl Share Capital 55.00.000 EquityShares 10r-each o1'Rs.

55000000 55000000

55000000 55000000

Subscrihed Paidup Capital IssucJ. & I 9.73.1 EquityShare 00 o1'Rs. 0,11 eachfullv paid 28.99.700 Ectuitr,Shares o1'Rs. l0i- cachRs.2.50 Panl Paidup 1.84",+00 o1-Rs. l0/- eachRs.5/- I)arll eouitv shares Paidup Total Rs.

19711000

I 973 000 I

7t+qt -i0

7t.+9t5 0

922000 27902250

922000 27902250

Schedule Sundn Debtors 3 (t-lnsecured considered and Good) More than6 rnonths

Within Monrhs 6
TotalRs.

H 19972 500001
I9l 997i

l.+ 9971 I
0

1419972

Schcdule ( ash & Bank Balances 4 Cashon Hand BankBalanccs s Chaftcred Cirindlar Bank Standard Total Rs.

18s7042
5201 5165 IU67.+08

1437042 -5201 -5 165 1.1.17408

Schedule Loans& Advances 5 (Unsecured Considercd Doubtfirl) & in to Advances be rccoverable cashor kind lbr Valueto be rcceir ed CapitalItents Adl'ancetou,ards Deposits Sundr-v Total Rs.

7ul5 5 9 5 4310000 1070 121 0025 6

7825955 ,li 3000t) 4070

l 2r60025

l>tlnJr\ ( rcLlrl('rs

rr975l{l

r,qTiRl

Schedule Miscellancous 7 Exps. Prelirrinarl,Exps PublicIssue lixps Protlt & LossAccount 'I-otal Rs.

74137 '1(r9l 04 6962215 7505456

71137 4691 0;l 7329934 787317 5

Schedule lncome 8 Proiectlncome Otherlncome Total Rs,

5000000 -i5000 50i 5u00

0 0

ichedule Other OperationalErps 9 Errrployecs Emolumenls Audit Fees OtherExps Total lts.

3572650 10500 117994

10500 0 10500

.+001 I .+'1

r l l n r c r e& t( . r m m i s . i ol np s s

t;:t<Srll

17501

SCHEDULE NOTESON ACCOUNTS ACCOUNTING I1 & POLICIES BASISOF ACCOTJNTING

T h e f i n a n c i a l t a t e n e n ta r c p r e p a r e o n t h eb a s i s f h i s t o r i c a lo s tc o n v e n t i oa n do n a c c r u ab a s i s . d s s o c n l F I X E D A S S T E SA N D D E P R E C I A T I O N l - j x e d s s c t s r es t a t e d t c o s ta n d i n c l L r d c s l t h ee x p e n d i t u r e C a p i t a N a t u r e . A a a al of l Depreciation has been provided on SLM in accordancc \\'ith the ratc specified under ScheduleXtV of the ConpaniesAcl. I956. Depreciation additions on duringthe ),earis providcdon pro-ratabasisrvith refcrence the to dateof inslallation. RETIREMENT BENEFITS P r o v i d e n t L i n d C r a t u i t \i s n o l a p p l i c a b lte t h ec o n p a n \ . F & o O T H E R N O T E SO N A C C O T J N T S E s t i m a t ev a l L l e f C l o n t r a c tu t s t a n c l i n g C a p i t aa c c o u n tR s .N I L d o o on l s E x p e n d i t u ri e c u r r c d c l a t i n go P u b l i cl s s u e s a m o r t i s eo v e ra p e r i o d f l 0 y e a r s . n r t i d o Advance recolerablc in cash or kind includcsadvancein tl're natLrre loan uhich are uithoul arry of stipulationregarding the interest and fbr rvhich contlrmationsarc not obtained. In the absenceof stipulation to inlerest podionsofthe interest beenconsidereo accntcd. as no has as ,1. Statistical Inlbrrnation L 2. L

inr Stock V a l u eo l ' I onCIFBasis i t u r ei n I o r e i s nC I n c o m e n F o r e i ! 1C i n A u d i tF c c s Ihe purchasc consideration the Land and Building at Coinrbtore$as paid to the ManagingDirector tbr jn and thc asscts 1et to be transferred the namcofthe Compan). are l n t h eo p i n i o n f t h e t s o a r d u n e n tA s s e t sl.- o a n s n d A d v a n c eu i l l f c t c ht h e a r n o u ns t a t e di.f r e a l i z e dn o C a s t i the ordinar!'course businsss. of 7 . Previous Year Figureshavebeenregrouped rearran-qe r.lherever or necessarr.
J,

NIL

NIL

I r o r s ht l . N l a c u a n A i Chartered Accountants '/' ,-. I ' i

i.

f o f A K F S o f '& I n i b s \s ( l n d i a )l - t d t

\.h' r,f\"
Dircctor'

( A s h i tT . M a c w a n , ) Proprietor M e n N o . I 0 7 8 cI) Place:Ahmedabad D a l e: o j - ' , . . : . . r i o

ou"' t 1r1 t*

Place:Coinbatore

C B A L A N C E S H E E T A B S T R A C TA N D C O M P A N I E S E N E R A P R O F I L E PART IV SCHEDULEVI OF THE COMPANIES ACT. I956 RegistrationDetails Number Rcgistratio Balance ShectDate Public ssue I R i g h tl s s u e 1 8 - 6 0 1o f I 9 9 5 7 l 3 I - 0 3 - 2 00 NIL NIL StatcCode Isstte Llonus P Private lacemcnt I8 NIIN _

o P o s i t i o n M o b i l i s a t i o n f F u n d s( R s . I n 0 0 0 ' s ) & IoialLiabilities of Sources Funds P a i du p C a p i t a l Rcscrves Surplus & Loans Secured Loans tJnsecLrrcd

t7902.15 2790).25

-lotal Assets A p p l i c a t i oo f F u n d s n Net Fixed Asscls Invcstments Assets Nct CLrrrent [:-rps. Miscellancotts

17902.25 , 1 59 r . S 6 l 15887.6-5 56 7505:1.

P e r f o r m a n c o f t h e C o m p a n l ( A r n t . i n R s .0 0 0 ' s ) e Iurnovcr Plofit Befbre lax IlarningPerShare l - d a lE x p e n d r l u f c ProfitAtier Tar Di\ idendRate .16.67 1.67

L67

o G e n e r i cN a m e s f t h e T h r e e P r i n c i p a lProducts I I t e mC o d eN o . r\s per Our Rcporttlf Even Dale ( F o rA K F S o l i & I n f i r s l s l n d i a )L t d N.A.

For Ashii T. Mac\ran Accountants Cha11ered

/ 7>"
(Ashit l-. Mac\\'an) Proprretor M c mN 0 . 1 0 7 8 9 1 Place:AhmeCabad Date : *' j ._,, :,,, , c

^L/-

Director

.p--,,,,*,,,

PlaceI Coimbtore D a t c: 2 1 1 1 1 - , 1 o

MARCH' 20IO C A S H F L O W S T A T E M E N I ' F O RT H E Y E A R E N D E DO N S I S T PARTICT]LARS

31.01.2010 l i . 6 7 . 79

n Rs. 31.03.2009 ,12250 0 t.750

AcrlvlrlEs EIsH FLo\ r lRot\l oPERATING

Net Profit Belirre lax ior Adiustment -Depreclatroll -l inancial Interest Charges & P O p e r a t i n g r o f i t b e f o r eW o r k i n g C a p i t a lC h a n g e s in tbr Adjudtrnent changes \!orking Capital -SundryDebbrs - l r ' a nA d r r n c c st n dC u r r ( r l lA \ \ c l s Cash gcneratedfrom OPerations
- | , r re . P ; ; , 1 lN^, r..t Fr^u fr^m oneratino {ctir itie\ - A

5 .i 2 . 2 IIt (r l .l l.8 -5 t0iI1156 -500001 1750 0

5 . 4| . 6 0 6 0

-r0500
4l ..170 -20.t70

10.500 0 0 0 1.750 1,750 12,250 1,t,J7,408 1,1,59,658

B CASII FLOW FROM INVESTINGACTIVI I'LS

-Purchase Fixed Asscts on -Proceeds tiom Saleol'Fi\ed Assets Net Cash used in inresting actir ities - B

u (1.1r.856)
1,33.856
{,07.750 I1.59,65lJ 18.67.t08

A C A S HF L O W F R O M F I N A N C I N G C T I V I T I E S -f inancial Interest Charges &

n-r r-..h Fl,,u frirm Finrncinp Acti\ ilie\ - C

I"l i .."rr"7d"..rsc in cash & cash equvalents(A+B+c) a C a s h& C a s h E q u i } a l c n t s s a t I 1 . 0 3 ' 2 0 0 9 s C a s h& C a s h E q u i v a l e n t a s a t 3 1 . 0 3 . 2 0 1 0

NOTE -Th.turh

methodas setout in AS 3 on Cash underthc Indirect has Flo$, Statement becnprepared Rules'2006 Standardl (AccoLlnting b1 issucd Conlpanies Flow Statemenl

[ : o r .A s h i tT . M a o r a n Accountants Chartefed

-\.

P,,

l A s h i tT . M a o r a n ) Proprietor M c mN o . 1 0 7 8 9 1 : I)lace Ahrnedabad D a t e :c ; . , L , l .4 c

'

l ) l - o rA K L S o f t& t r r l b s v(s n c l i a t - i m i t e d ./

I
I

.r fa'(j5
l)ircct0r

P l a c eC o i t r r b a t o r e :

oate: 1l tl 2..1a