AKL SOFT AND INFOSYS (INDIA) LIMITED ANNUAL REPORT 2008-2009 NOTES ON ACCOUNTS BASIS OF ACCOUNTING: The financial statements are prepared under historical cost convention and on accrual basis. FIXED ASSETS AND DEPRECIATION: Fixed Assets are stated at cost and includes all expenditure of Capital nature. Depreciation had been provided on straight Line Method in accordance with the rate specified under Schedule XIV of the Companies Act 1956. Depreciation on additions during the year is provided on pro-rate basis with reference to the date of installation. It respect of assets costing up to Rs.5,000 each, the policy of the company is to charge 100% depreciation in the year in which such assets are installed or put to use. However, no depreciation is provided for the year under consideration as there is no business during the year. RETIREMENT BENEFITS: (iv) 1. Provident Fund is not applicable to the company. (iv) 2. At present gratuity is not applicable to the company. OTHER NOTES ON ACCOUNTS: 1. Estimated value of Contact outstanding on Capital account NIL. 2. Expenditure incurred relating to Public Issue is a mortised over a period of 10 years. 3. Advance recoverable in cash or kind includes advance in the nature of loan which are without any stipulation regarding the interest and for which confirmations are not obtained. In the absence of stipulation as to interest no portions of the interest has been considered as accrued. 4. Statistical Information: 31-3-2009 1-03-2008 capacity Capacity Not applicable Not applicable (ii) Installed Capacity Not applicable Not applicable KGS/NDS Turnover: Raw material NIL NIL Raw material NIL NIL Finished Goods NIL NIL Raw material consumed NIL NIL Production: Stock in Hand Raw Material: Opening stock NIL NIL Closing stock NIL NIL Finished Goods: Opening stock NIL NIL Closing stock NIL NIL Semi Finished Goods: Opening stock NIL NIL Closing stock NIL NIL Value and Percentage of imported and indigenous raw materials and stores consumed: (i) Raw material-indigenous NIL NIL (ii) Stores consumed-Indigenous NIL NIL 1. Value of imports on CIF basis: (i) Capital Goods NIL NIL (ii) On Stores and Spares NIL NIL 2. Expenditure in Foreign Currency: (a) On Foreign Travel NIL NIL (b) On Stores and Spares NIL NIL 3. Managerial Remuneration: Remuneration to Managing Director: (i) Salary NIL NIL (ii) Money value of perquisites NIL NIL 4. Break up of Audit Fees: For Audit Rs.10,5000 Rs.10,500 For Other Services NIL NIL For Expenses NIL NIL 5. In case of amount outstanding to small industrial undertaking the overdrawn liability is Rs. NIL. 6. The Purchase consideration for the land and building at Coimbatore was paid to the Managing Director and the assets are yet to be transferred in the name of the company. iv) 1. The company has taken over the assets and liabilities of two concerns in which two of the Directors are interested (based on agreement entered with them). The company has paid towards technical knowhow to those concerns. iv) 2. In the opinion of the Board, Current Assets, Loans and advances will fetch the amount stated, if realized in the normal course of business. iv) 3. No provision for taxation has been made as the company has not made any profit during the year. iv) 4. Previous years figures have been regrouped where necessary to confirm to current years classification. For Apaji Admin & Co. CHARTERED ACCOUNTANTS DIRECTOR (T.B. SETHNA) PARTNER DIRECTOR PLACE : AHMEDABAD PLACE : COIMBATORE DATED : 18/06/2009 DATED : 28/07/2009