(lllDlA}trD AKL Al{D SoFT H{FoSYS

REPORT 13.N Aill{UAL YEAR El{llED 31.03.2008

AKL SOFT AND INFOSYS (INDIA) LTD. NOTICE of the 13'r'AnnualGeneralMeeting Noticc is hercbygiven that the 13'r'AnnualGeneral Meetingof the
(INDIA)LIMITED"u'ill be heldon Monday. Membcrs of "RrL SOFTAND INFOSYS Nagar, the 30'hSep2008at 10.00 at 325, PatelRoad,Rar.n am Coirnbatore 641 009 to lo transact lhe lollouingbusiness:ORDINARYBUSINESS l. as To receive, consider adoptthe AuditedBalance and Sheet the colnpany at of
31" March 2008 andthe Profit and LossAccountfor the tlnancialyearendedas on and Auditorsthe thereon. that datealongwith Reports the Boardof Directors of
2.

To appointa Director in the placeof Mr.K.N. Vittal who retiresby rotationand beingeligible,offershirnselffor re appointment. To appointthe Auditorsand fix their remuneration.

Place: Coimbatore Date: 28th July 2008

By orderof the Board

Sd/- V. Jagadish Managing Director NOTES entitledto attendand vote at the meetingis entitledto appointa PROXY to l. A rnernber of neednot be a rnember the attendand vote on his behalfand the proxy so appointed Ofhce of the company.Proxiesto be effectivemust be deliveredat the Registered companynot lessthan48 hoursbeforemeeting. of of 2. The ShareTransfbrBook and Register Members the companywill rernainclosed 2008,both daysinclusive. 2008to 27't'September fiom 25tr' September

(rNDtA) LTD. AKL SOFTAND TNFOSYS

DIRECTOR'S REPORT'TO SHARE IIOLDERS Your directors happyto present are you the l3th Annual Reportof your Companyfor the yearended3 I " March 2008

PERFORMANCE The financial year, under review u,as parlicularly a very unlavorableone to the soft\vare industry.The slow down of the westemeconomies adversely affectedto the Indian softwareindustryin suflereda lossof Rs. 7,01,045 the yearas cornpared Rs. 12,76,566 for to last year. Your directorshopc that in the current year the colnpanywill be able to post a betterperforrnance.

DIVIDEND In view of tl-re losssuff'ered the companyno dividendcould be recommended. by

DEPOSI'I'S The Cornpanyhas not accepted any Fixed Deposits,within the meaningof Section Act, 1956. 58A of Cornpanies

DIRECTORS Mr. MANI VIJAYA RAGHAVAN is retiring by rotation at the ensuing Annual General Meeting and being eligible offers hirnself for reappointrnent. Mr.Mani Vijaya Raghavanis a successful businessrnan having years of experiencein management. His in continuation the boardwill be beneficial the organization. to

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CONSER\/ATIO\ OF' E\T-RG\'. TF-CI{\OI,OGY.' ABSORPTION AND FOREIGN EXCIIANGEEARI\GS .{\D OI.'t (]O: activity in the company. During thc' \ L-alunder rfpoft tncrc $ as no uranuf-acturing Nou netv technologyltas been adoptedor absorbedand there was no foreign exchange of eanrings outgo.

PARTICULARS OF EMPLOYF]ES UNDER SECTON 217 (2A) OI.' THE ACT, I956. CON,IPANIES 217 by s Thereareno ernployeefallingwitliin the lirnitsprescribed the Section (24) is of underthe provisions the saidsection not of anclas suchthe requirernent statement attached. UNDERSECTION217(2A)OF'THE COMPANIES OF DIRECTORS EMPT,OYEES ACT, 1956. that: confirrn hereby of Theboard directors
standards accounting the of In the preparation the annualaccounts, applicable had beenfollowed.

r)

ii)

The accounting policies are reasonableand prudent and are consistently of fbllowedto give a true and fair view of the stateof aff-airs the company'

i ii)

accounting of Properanclsufllcientcare is takenfor the maintenance adequate records tbr safcguardingassetsof the cornpany and for prevention and of deteclion fraudor irregularilies.

iv)

on havebeenprepared a'going concern'basis' accounts The arurual

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of Now tlie said auditorsare retiring with the conclusion the ensuingAnnual General -fhe said auditorshave confirmed fbr Meetingand are offbring. themselves reappointment. 224 (l-B) of the by would bc wcll within the limits prescribed Section the theirappointment Act, Cornpanies 1956.

AUDIT COMMITTEE the compositionof The Board of directorshave conslitutedan Audit Cornrnittee, which is as follows:
l . Mr.K.N. Vittal

2 . Mr.Mani Vijaya Raghavan

AUDIT OBSERVATIONS of made by Auditors regardingnon-recoverability loans As regardsthe observation stepsarebeingtakento recoverthe same. and sundrydebtors.

of to the are Steps alsolaken register landin thename theCornpany.

ACKNOWLEDGEMENT and authorities Departments, agencies, wish to thankthe Government Your directors and fbr and customers ernployees theirsuppoft co-operation. bankers,
For and on behalfofthe Board Place: Coirnbatore 2008 Date: 2lJ'r'July Sd /-V. Jagadish ManagingDirector

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TO OF REPORT THE AUDITORS THB MEMBERS

BalancedSheetof AKL SOFT AND INFOSYS \\'e hare auditcdthe attached (INDIA) LIN'IITED at 3 i" March2008 and the annexed Profit and lossAccountfbr the as vearendedon that date.

generallyaccepted in with auditing standards our audit in accordance l. We conducted requirethat we plan and performthe auditto obtainreasonable India.Thesestandards assuranceabout whether the financial statelnentsare free frotn any rnaterial An misstatement. audit includesexatniningon test basis,evidencesupportingthe assessing An in amountsand disclosures the financialstatements. audit also includes, as rnadeby tnanagement, well principles usedand significantestimates the accounting We of the as evaluating overallpresentation the financialstatements. believethat our basisfor our opinion. auditprovidesa reasonable

2. (.1)

which to the bestof our all We haveobtained the infonnationand explanations ofour audit. for knowledgeandbelief were necessary the proposals

(ii)

as In our opinion properbooksof accounts, requiredby law havebeenkept by ofthose books. fonn our examination the companyso far as appears

(iii)

to and the Profit and LossAccountreferred in this repoftare The BalanceSheet with the booksof accounts. in asreement

(iv)

and Profit and LossAccountdealtwith by the ln our opinionthe BalanceSheet referredto in Section with the accountingstandards report are in compliance Act 211 (3C) of theCornpanies 1956.

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(")

fumishedto us, we areof the opirliorr Basedon the infonration and explanation as for that noneof the directorsare disqualifies appointr-nent a Directorof the Act in 27a(l) (g) of the Companies I 956. cornpany tems of Section

(ui)

In our opinion and to the best of our infonnation and according to the given to us. subject to recoverabilityof loans and advances explanations to to and amounting Rs.76,24,830 Sundrydebtorsatnounting Rs.14,19,972 to the which in our opinionare not recoverable. lossis understated thc extentof togetherwith Accountingpoliciesand not Rs.90,44,802 the said accounts and Act, 1956 in the tnannerso give the informationrequiredby the Cornpanics requiredand the Balance Sheetgives a true and fair views of state of the affair as to 3 l" March 2002 and the Profit and Loss Accountgives Cornpany's a true and fair view ofthe lossfor the vearendedon that date.

(Auditorsreporr)order 1988 and other Cornpanies 3. As requiredby the Manufacturing issuedby the CompanyLaw Board in terms of Section227 (4A) of the Colnpanres given to us and books and Act 1956and on the basisof infonnationand explanation recordsexaminedby us in the normal courseof our audit and to the best of our kno',vledee and belief. we further statethat

(i)

including properrecordsshowingfull particulars has maintained The cornpany As of detailsand situation fixed assets. per the informationand the quantitative have beenphysicallyverified by the given to us the fixed assets explanations havebeennoticed managernent duringthe periodand no materialdiscrepancies are on suchverificationexceptthat certainfixed assets yet to be transferedin the nameof the cornpanv.

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(i)

during the year. havebeenrevalued assets Nonc of the f-rrcd rnaintained has not takenloan from the parlieslisted in thc registers I'he conrpany under the Act, I 956 and frotn cotnpanies 30 unclerSectiorr - I of the Companies Act, 1956. 370 (lB) of the Cornpanies uncler Section as managcment definecl sar.ne in The cornpanyhas rnadeadvances the natureof loansto some partiesand the the same was yet to be rcnaid.We were inlorrncdhy the corltparly salneis no recoverable.

(ii)

( iii)

(iv)

given to us, there and explanations to In our opinionand according the infomration with the size of the colnmensurate arc adequateinternal control procedures, for the purchaseof stores,raw materials company and nature of its business, an<lfor and equipurents other assets plant and machinery, includingcomponents, saleof goods.

(v)

rvithin the meaningof section58A of any has The cornpany not accepted deposits thereunder. Act, 1956andthe rulesfrarned the Cornnanies

(vi)

intemal audit system,commensurate In our opinion, the companyhas adequate with the sizeand natureof the business.

( i.)

that the companyis not requiredto naintain the costrecords We were infbrrned prescribedby the Central Governtnentunder Section 209(l) (D) of the Act. 1956. Comoanies

(ii)

According to the infonnation given to us the companyis not coveredunder Act. StateInsurance FundAct and Ernployee Provident

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(iii)

givento us' thereareundisputed Accordingto the infbmation and explanations -l'ax and Excise Dut; ln respectof lncoue Tax' Sales amounts,payable sheetdate' as six rnonths on the balance fbr outstanding a periodexceeding explanationsgiven to us no Personal According to the infonnation and to havebeencharged the revenueaccount or of expenses ernployees directors with obligationsor in accordance other that thosepayableunclercontractual ices pract ' husines: acccpted generally cotnpanywithin the ureaningof Clause ts The companY not a sick industrial (specialprovisions)Act 3(1) of the sick industrialcompanies (O) of Section 1985. to the of the said order are not applicable ln our opinton rest of the clauses company.

(iv)

(v)

(vi)

Place: Ahrlredabad Date :

For, Apaji Admin & Co' CharleredAccountants

(T.B. Sethna) Pafiner

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AKL SOFT AND INSOFYS(INDIA) LIMITED BALANCE AS SHEET AT 31-03-2008

As at 31" Mar. 08

DESCRIPTION O SOURCES F FUNDS: holdersFund Share Share Capital Reserves Surplus and

SCHEDULB

As at 3l't Mar.07

I TOTAL

2.79,02.2s02.79.02.2s0
U
t,

2.19,02.250 2,79,02.250

APPLICATION OF FUNDS: FixedAssets Investrnents loans& Advanccs CurrentAssets, Current Assets Inventories SundryDebtors Cash& Bank Balance Loans& Advances Less:CurrentLiabilities& Provisions Cunent liabilities Provisions Net CurrentAssets Expenditure Miscellaneous TOTAL For Apaji Adrnin & Co. CHARTERED ACCOUNTANTS

50,11 ,428 0

3 4 5

0 0 14,19,972 t4,19,9'72 14,,47,408 14,59,658 |,21,60,025 r , 21 , 3 9 , 6 5 5 |,50,21 ,405 | 5 0 t q 6 5 5 69,758 0 69.,758

U

1,49,5'7,647t,49,69,897 1 8 , 7 3 , 1 7 5 78,60,925 2,79,02.,250 2,79,02,250

DIRECTOR

(T.B.SETHNA) PARTNER PLACE:AHMEDABAD DATED : 18/06/200ti DIRECTOR PLACE: COIMBATORE DATED :2810712008

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(INDIA) LIMITED AKL SOFTAND INSOFYS

31.03-2008 FORTHEYEAR ENDED ACCOUNT & PROFI'f LOSS
As at 31" Mar. 08 As at 31" Mar.07

DESCRIP]-ION

SCHEDULE

INCOME:
Otlter Incotne

8 TOTAL

0
U

4,654 4.654 3,000 3,72,855 5,0s0

) )4 794

EXPENDITURE: Cost Personnel exPenses Otheroperating FinancialCharges Depreciation

0 9 l0 TOTAL 10,500 I,750 0 12,250

7,05,699

beforetaxation Net Lossfrom operation Provisionfor Taxation

(12,2s0) (7,01 ,045)

U

LossAftcr Taxation b/f Balance from previousYear in Balance profit & lossaccount

i,04s) (12,2s0) (7,0 6,63e) (73,t7,684)(66,r (13,29,934)(73,17,684)

ForApajiAdmin& Co. ACCOUNTANTS CHARTERED DIRECTOR

(T.8.SETHNA) PARTNER DIRECTOR

PLACE: AI'{MEDABAD DATED: l8/06/2008

-il*

PLACE: COIMBATORE DATED:2810712008

ON3I-03-2008 \ S C H E D U T -'E\ \ L \ L , D T O B A L A N C ES H E E TA S
Dcscription

As at 31" Mar.08

As at

31"
Mar.07

C S C H E D L ' L E ' _ S T T - T NC A P I T A L CaPital Share Authorized of equityshare Rs.l0/-each 55.00.000 & Subscribed paidup capital Issued. I 9,73,I 00 equity shareof Rs.I 0/- eachfully paid partly eachRs'2'50 of equityshare Rs'10128,g9,100 paidup pafty of i,t+,+bOequityshares Rs.l0/-eachRs 5'00 paid up

5s,00,000 55,00,000

, 1 , 9 7 ,I30 0 0 1 , 9 7 , 3 1 , 0 0 0 9,22,000

9,22,000

2,79,02.250 2,79,02,250

SCHEDULB 3-SUNDRYDEBTORS good) and (Unsecured considered More than 6 Ironlhs Others

14.|s,e'72 t+,tr,ozz |
14,19,972 14,r9,912 |

ANDBANKBALANCES scnpouln 4-cASH I^ _ t

I L asnBalance I Bank Balance
I o.^-,r^-,r /-L^,+orprl ll.inrllqvs Rank

t4,37,042 14,47,s42 | 5,201 s,201 I 6,915 s.l6s l

t4,47.408

r4,59,6s8

SCHEDULE s-LOANS AND ADVANCES doubtful Unsecured considered in recoverable cashor kind or for the Value Advances to be received AdvancetowardscaPitalitetns SundrvDePosits

78,25,9s5

7't 75 955

43,30,000 43,30,000 4,0'70 4.070 5 I ,2I ,60.02 1,21,60,025 69,'758 s8 69,T 69,758 69"75ft

6 SCHEDULE _ CURRENTLIABILITIES Creditors Sundry

- l2-

Description EXPENDITURE 7 SCHEDULE _ I\IISCELLANEOUS Expenditure Prelirninary PublicIssueExpenditure Profit and LossAccount

As at 31" Mar.08 74.t37 4,69,104 13,29,934

As at 31" Mar.07 74,137 4,69,104 1 3 , 1,7 8 4 6

7 8 , 7 3 , t ' 7 s 78,60,925 8 SCIIEDULE _OTHERINCOME lnterest bankdeposits on

SCHEDULE 9 _ OTHER OPERATION EXPENSES

Audit Fees know how writtenoff Technical writtenoff expenses Prelirninary writtenoff Publicissueexpenses

10,500 0 U 0

10.500 2,s0,000 18,534 93,821 r 7) R55

r0,s00
1O SCHEDULE - FINANCALCHARGES and Bankcharees cornmission

- | )-

SCHEDULE 2 FIXED ASSE'TS

BLOCK GROSS PARTICULARS Depreciation Upto NetBlock

AS COST Total ADDITIONS 31.032003 ON 0'1.04.2002 13,21 .604

I For

I the I Year

As Total on 31.032002

Ason Ason 31.032008 31.03.2008

Land Buildings

0 0
0 0 0

13,21 ,604

,604 13,21 ,604 13,21

3,32,549

3,32,549 57,669 0
48,97,10418,88,704 0 1,52,349 68,373 0

57,669 2,74,880 2,74,880

& Plant Machinery 48,97.104 Equipments

Vehicle 1,52,349

3 18.88,70430,08,400 0,08,400
68,373 83,976 83,976

3,75,623

3,75,623 2,00,544 0
2.16,620 26,500 37,500 67,438 0
2 AO4

2,00,544 1,75,079 1,75,079 182 67,438 1,49,182 1,49, 2,404 24,096 34,211 24,096 34,211

Computer
UPS

2,16,620 0 26,500
27,500 73,59,849 7359849 0

AirConditioner
Total

0 0 0

3,289 0

3,289

73,59,849 22,88,421 0 7359849 1963626.8 0

22,88,421 50,71,42850,71,428 324194 22,88,421 50,71,428

Year Previous

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SCHEDULE : l4 NOTES ON ACCOTINTSACCOTJNTINGPOLTCIES BASIS OF ACCOUNTING The financialstatelnents prepared are underhistoricalcostconvention and on accrualbasis.

FIXED ASSETSAND DEPREDCIAT'ION FixedAssetsarestated costand includcsall expenditure Capitalnature. at of Depreciationhad been provided on straight Line Method in accordance with the rate specified underSchedule XIV ofthe Cornpanies Act 1956.Depreciation additionsduring on the year is providedon pro-ralebasiswith reference the,date of installation. respect to It of assets costingup to Rs.5,000each,the policy of the companyis to chargel00o/o depreciation in the yearin which suchassets installed put to use. are or Hou'ever, depreciation providedfor the yearunderconsideration, thereis no business no is as during the year.

RETIREMENT BENEFITS l. Provident Fund is not applicable the company. to 2. At present gratuityis not applicable the company. to

OTHER NOTES ON ACCOUNTS Estirnatecl valueof Contactoutstanding Capitalaccount on NIL. Expenditureincurredrelating to Public Issue is a mortisedover a period of l0 years. 3. Advancerecoverable cashor kind includesadvance the natureof loan which in in are without any stipulationregarding interestand for which confirmations the are not obtained. the absence stipulation to interest portionsof the interest In of as no hasbeenconsidered accrued. as 4. Statistical Infomation 3 I -3-2008 3t-03-2005 Capacity (i) Licensed Capacity Not applicable Not applicable (ii) InstalledCapacity Not applicable Not applicable KGS / NDS ..l5-l. 2.

Turnover' NIL NIL Raw uraterial NIL NIL Rarvtnaterial NIL NIL Goods Finished NII, NIL Raw materialconsutned Production Stockin Hand Raw Material NIL NIIOpeningstock NIL NIL stock Closing Finished Goods NIL NIL Openingstock NIL NIL Closingstock Semi Finished Goods NIL NIL Openingstock NIL NllClosingstock consumed and raw rnaterials stores of Value and Percentage importedand indigenous NIL NIL (i) Raw material-indigenous NIL NII' consurned-lndigenous (ii) Stores l . Value of irnPonson CIF basrs Goods (i) Capital and SPares (ii) On Stores NIL NIL NIINIL

in 2 . Expenditure ForeignCurrencY (a) On ForeignTravel and SPares (b) On Stores Rernuneration 3 . Managerial

NII' NIL

NIL NIL

to Remuneration ManagingDirector Nll' (i) Salary (ii) Money valueof perquisites NIL Breakup of Audit Fees For Audit For Other Services For Expenses

NIL NIL

Rs.10,5000 NIL NIL

1 Rs. 0,500 NIL NIL

the overdrawnliability to In caseof amountoutstanding srnallindustrialundertaking is Rs.NIL. u'as paid to the for consideration the land and building at Coirnbatore o . The Purchase be transferred in the name of the Managing Director and the assetsare yet to company. - l6-

in of and liabilities two concerns has ll.The cornpany takenover the assets with (based agreement entered on which trvo of the Directorsare interested thern). The conlpany has paid towards technical know how to those conccrns.

will fetch 12.ln the opinion of the Board,CurrentAssets,Loansand advances of if in stated, realized the normalcourse business. the arnount

13.No provisionfor taxationhas beenniadeas the companyhas not madeany profit duringthe year.

to where necessary confirm to yearsfigureshave beenregrouped 14.Previous currentyearsclassification.

For Apaji Admin & Co. CHARTEREDACCOUNTANTS

DIRECTOR

(T.B. ETHNA) S PARTNER PLACE:AHMEDABAD DATED: 18/06/2008

DIRECTOR PLACE: COIMBATORE DATED :2810712008

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ABSTRACTAND COMPANIESGENERAL BALANCE SHEE'I' PROFILE

ACT PART lV _ SCHEDUI,E VI OF CON{PANTES

RBGISTRATION DETAILS l8l-6017 of 1995 II 3l-03-2008 NIL NIL BonusIssue PrivatePlacernent NIL NIL

Number Registration StateCode date Balancesl.reet PublicIssue Right lssue

(Rs'In 000'S) OF AND DEVELOPI\IENT FUNDS OF MOBILTSATION POSITION Total Liabilities ofFunds Source Paidup Capital Resele & SurPlus Loans Secured Loans Unsecured 21,902'25 2'7,902'25 Total Assets Applicationof Funds Net Fixed Assets lnvestments Net CurrentAssets Miscellaneous ExPenditure '64'7 14'957 54.24 5'071'43 27 '902'25

PERFoRMANCEoI..THECOMPANY(AmountinRs.Thousands) Tumover Total ExPenditure Proht BeforeTax Profit After Tax EamingsPer Share DividendRate 12 25 02 25) (12'25) NIL N IL - l8-'

GENERIC NAMES OF TIIREE PRINCIPAL PRODUCTS

Code) (l) IternCodeNo. (11'C ProductDcscriPtion

Not Applicable Soltuare& Weh Designing.

AS PEROUR REPORTOF EVEN DATE APJI ADMIN & CO. CHARTEREDACCOUNTANTS (T.8. SETHNA) PARTNER DIRECTOR

DIRECTOR

PLACE: AHMEDABAD DATE : 18.06.2008

PLACE: COIMBATORE DATE :28.07.2008

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