Directors Report of Ajel Ltd.

Mar 31, 2024

Your Directors hereby present their 30^th Annual Report on the business and operations of your Company for the financial year ended March 31^st, 2024.

Financial Results

The standalone and consolidated financial performance of the Company for the financial year ended March 31^st, 2024, is summarized below:

(Amount in Lakh
Particulars	Standalone		Consolidated
	Current Year 31-03-2024	Previous Year 31-03-2023	Current Year 31-03-2024	Previous Year 31-03-2023
Gross Revenue from Operations	462.52	31 7.53	1363.19	813.51
Other Income	18.22	0.07	18.23	0.07
Total Revenue	480.74	317.60	1381.42	813.58
Total Expenditure	662.46	352.92	1565.47	828.75
Profit / (loss) Finance Costs, Exceptional items and Tax	(181.72)	(35.32)	(184.05)	(11.58)
Finance Costs	-Nil-	-Nil-	37.40	3.59
Profit / (loss) Before Exceptional items and Tax	(181.72)	(35.32)	(184.05)	(15.18)
Less: Exceptional items	0.00	(40.23)	0.00	(94.51)
Profit/ (loss) Before Tax	(181.72)	4.91	(184.05)	79.33
Less: - Deferred Tax	1.29	(1.68)	1.29	(1.68)
Profit / (loss) After Tax	(183.01)	6.60	(185.34)	81.01
Other Comprehensive Income (OCI)	14.61	19.02	14.61	19.02
Total Comprehensive Income	(168.40)	25.61	(170.73)	100.03

Review of Performance and state of the company''s affairs;

During the year under review, the overall performance of the Company was reasonable, the management is determined to achieve the targeted avenues, to take the company on the new heights. Members will notice that the revenue on standalone basis increased to Rs. 4,80,74,000/- as against Rs. 3,17,60,000/- for the previous year. Members will further notice that the revenue from operations on consolidated basis increased to Rs. 1 3,81,42,000/- as against Rs. 8,1 3,58,000/- of the previous year.

The Company incurred Net Profit of Rs. -1,68,40,000/- in the Current Year, as compared to the Net Profit of Rs. 25,61,000/- in the Previous year.

The Company is continuously striving to improve efficiency and deliver excellence in its professional services and project execution. The Company has identified new avenues for growth and is focusing its energies to develop business. The Company continues to focus on delivering services to its identified market segments in its core technology areas. It continues to align its sales and delivery organizations to an offshore centric model as well as big foray into Domestic market.

Dividend;

Board of Directors have not recommended any dividend for the Financial Year 2023-24.

Transfer to Reserves;

There were no transfers to Reserves during the Financial Year 2023-24.

Share Capital;

The Authorized Share Capital of the Company stands at Rs. 12,00,00,000/- (Rupees Twelve Crores only) divided into 1,20,00,000 (One Crore Twenty Lakhs only) Equity Shares of Rs. 10/- (Rupees Ten) each. As on date Paid up Share Capital stands at Rs. 11,65,00,000/- (Rupees Eleven Crores Sixty-Five Lacs only) divided into 1,16,50,000 (One Crore Sixteen Lakhs and Fifty Thousand only) equity shares of Rs.

1 0/- each.

The Company has not issued any shares with differential rights and hence no information as per provisions of Section 43(a)(ii) of the Act read with Rule 4(4) of the Companies (Share Capital and Debenture) Rules, 2014 is furnished.

Consolidated Financial Results:

Pursuant to Regulation 33 of SEBI (Listing Obligations & Disclosures Requirements) Regulations 2015, and the Companies Act, 2013, the Consolidated Financial Statements prepared as per Companies Act, 201 3 and Accounting Standards, duly audited forms part of the Annual Report.

Listing;

The Company entered into Listing agreement with the BSE Limited.

Board of Directors and Key Managerial Personnel:

The Board of Directors of your Company is duly constituted.

Proposed Reappointment:

The Directors on the Board of Directors of the Company are appointed and re-appointed for specific terms. And also, the Executive Directors who are appointed on Board as on date are eligible to retire by rotation as per their terms of appointment, hence, the resolution for the same is proposed in the Notice of 30^th Annual General Meeting.

The Board of Directors of your Company is duly constituted with a Managing Director, a Whole Time Director & CFO, one executive Director and Three Non-Executive Independent Directors.

During the period under review the following changes took place in the Board:

1 Mr. Srinivasarao Yelamanchili (DIN: 07766151), and Mr. Narendra Parupalli (DIN: 08369204) has resigned from the Company as Independent Director w.e.f. 04.05.2023

2. Mrs. Pasupu/efi Madhavilafha (DIN: 07329817), was appointed as an Additional Director of the Company by the Board of the Company w.e.f. 04.05.2023.

3. Mr. Rishabh Dev Chauhan (Membership No: 71439), was appointed as the Company Secrefary/CompHance Officer of the Company w.e.f. 05.05.2023

4. Mr. Venkata Sfayanarayana Reddy Chinfakunfla (DIN: 0858262!), was appointed as an Additional Director of the Company by the Board of the Company w.e.f. !0.07.2023.

5. Mr. Sumanfh John Wesley Kumaraswamy (DIN: 08369205), has resigned from the Company as

Independent Director w.e.f. !0.07.2023.

6. Regularization of Mrs. Madhavi Lafha Pasupu/efi (DIN: 07329817) as an independent Director of the Company at the AGM for a term of five years.

7. Regularization of Mr. Venkafa Safyanarayana Reddy Chinfakunfia [DIN: 0858262!) as an independent Director of the Company at the AGM for a term of five years.

8. Re-appointment of Mr. Srinivasa Reddy Arikafla as the Managing Director of the Company at the AGM for a term of three years.

9. Mr. Baiarami Reddy Chinfakunfia, has resigned as Chief Financial Officer of the Company with effect from 2!.!0.2023.

! 0. Ms. ffarshana Anfharaji, was appointed as the Whole-time director and as Chief Financial Officer of the Company with effect from 2!. 10.2023.

!!. Mr. Rishabh Dev Chauhan [Membership No: 71439), resigned as the Company

Secrefary/Compiiance Officer of the Company w.e.f. 3! .03.2024.

Number of meetings of the Board:

During the period under review 7 (Seven) Board meetings were held on 04/05/2023, 30/05/2023, 10/07/2023, 1 9/07/2023, 1 1 /08/2023, 21/1 0/2023 and 14/02/2024 and the gap between any two Board Meetings is within the period prescribed by the Companies Act, 2013 and SEBI (LODR) Regulations, 2015.

Declarations by Independent Directors:

The Company has received declarations form the Independent Director under Section 149(6) of the Companies Act, 201 3 confirming their independence vis-a-vis the Company.

Board evaluation and assessment;

The company believes formal evaluation of the board and of the individual directors, on an annual basis, is a potentially effective way to respond to the demand for greater board accountability and effectiveness. For the company, evaluation provides an ongoing means for directors to assess their individual and collective performance and effectiveness. In addition to greater board accountability, evaluation of board members helps in;

a. More effective board process

b. Better collaboration and communication

c. Greater clarity with regard to members roles and responsibilities

d. Improved chairman - managing directors and board relations

The evaluation process covers the following aspects

- Self-evaluation of directors

- Evaluation of the performance and effectiveness of the board

- Evaluation of the performance and effectiveness of the committees

- Feedback from the nonexecutive directors to the chairman

- Feedback on management support to the board.

Familiarization Programme for Independent Directors;

The Company shall through its Senior Managerial personnel familiarize the Independent Directors with the strategy, operations and functions of the Company. The Independent Directors will also be familiarized with their roles, rights and responsibilities and orientation on Statutory Compliances as a Board Member.

On appointment of the Independent Directors, they will be asked to get familiarized about the Company''s operations and businesses. An Interaction with the key executives of the Company is also facilitated to make them more familiar with the operations carried by the company. Detailed presentations on the business of the company are also made to the Directors. Direct meetings with the Chairman and the Managing Director are further facilitated for the new appointee to familiarize him/her about the Company/its businesses and the group practices as the case may be and link is available at the website www.ajel.in

Directors'' Responsibility Statement;

Pursuant to the requirement under section 134 (3) and (5) of the Companies Act 2013, with respect to Directors'' Responsibility Statement, your board of directors to the best of their knowledge and ability confirm that:

a. in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;

b. such accounting policies have been selected and applied consistently and the Directors made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31^st March, 2024 and of the profit/loss of the Company for that year;

c. proper and sufficient care was taken for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

d. the annual accounts of the Company have been prepared on a going concern basis;

e. internal financial controls have been laid down to be followed by the Company and that such internal financial controls are adequate and were operating effectively;

f. proper systems have been devised to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively;

AUDIT COMMITTEE;

The Audit Committee of the Company is duly constituted as per section 1 77 of the Companies act, 201 3 and Regulation 18 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Composition and Scope of Audit Committee is as follows

As one of the members of the committee, Mr. Srinivasarao Yelamanchili (DIN: 07766151), Independent Director, has resigned from the board on 04.05.2023, the Audit Committee was again reconstituted w.e.f 04.05.2022 by appointing Mrs. Pasupu/efl Madhavilatha (DIN: 073298!7)as a member of the committee, who satisfies the criteria of having at least 2/3^rd of the members of the committee as Independent Directors on board as per Section 177 of the companies act, 2013 and Regulation 18 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Further, Mr. Sumanth John Wesley Kumaraswamy (DIN: 08369205), Independent Director, has resigned from the board on 10.07.2023, the Audit Committee was again reconstituted w.e.f 10.07.2023 by appointing Mr. Venkata Stayanarayana Reddy Chintakuntla (DIN: 08582621) as a member of the committee, who satisfies the criteria of having at least 2/3^rd of the members of the committee as Independent Directors on board as per Section 177 of the companies act, 2013 and Regulation 18 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The following are the members of the Audit Committee:
S. No	Name	Category of Director	Designation
1.	Mr. Rama Rao Madasu	Independent Director	Chairperson
2.	Mr. Venkata Stayanarayana Reddy Chintakuntala	Independent Director	Member
3.	Mrs. Madhavi Latha Pasupuleti	Independent Director	Member
During the	Period under review Audit committee has met 4 (Four) times in a year

Scope of Committee:

The terms of reference of the Audit Committee include the following:

a. Oversight of the Company''s financial reporting process and the disclosure of its financial information to ensure that the financial statement is correct, sufficient and credible;

b. Recommending the appointment, removal of external auditors, fixation of audit fee, terms of appointment and also approval for payment for any other services.

c. Reviewing with the management, the annual financial statements and auditor''s report thereon before submission to the Board for approval, focusing primarily on:

• Matters required to be included in the director''s responsibility statement to be included in the board''s report in terms of clause (c) of sub-section (3) of Section 134 of the Companies Act, 2013;

• Any changes in accounting policies and practices and reasons for the same;

• Major accounting entries involving estimates based on the exercise of judgment by management;

• Qualifications in the draft audit report;

• Significant adjustments made in the financial statements arising out of audit;

• The going concern assumption;

• Compliance with accounting standards;

• Compliance with listing and legal requirements concerning financial statements;

d. Reviewing, with the management and auditors, and the adequacy of internal control systems;

e. Review and monitor the auditor''s independence and performance, and effectiveness of audit process;

f. Reviewing, with the management, the quarterly financial statements and auditor''s report before submission to the Board for approval;

g. Reviewing, with the management, the statement of uses/application of funds raised through an issue, the statement of funds utilized for purposes other than those stated in the offer document/prospectus/notice and the report submitted by the monitoring agency monitoring the utilization of proceeds of a public or rights issue, and making appropriate recommendations to the board to take up steps in this matter;

h. Approval or any subsequent modification of transactions of the listed entity with related parties;

i. Scrutiny of inter-corporate loans and investments;

j. Valuation of undertakings or assets of the listed entity, wherever it is necessary;

k. Evaluation of internal financial controls and risk management systems;

l. Discussion with statutory auditors before the audit commences, about the nature and scope of audit as well as post-audit discussion to ascertain any area of concern;

m. To look into the reasons for substantial defaults in the payment to the depositors, debenture holders, shareholders (in case of non-payment of declared dividends) and creditors;

n. To review the functioning of the whistle blower mechanism;

o. Approval of the appointment of Chief Financial Officer after assessing the qualifications, experience and background, etc. of the candidate.

p. Composition, name of members and Chairperson

Remuneration Policy;

The Board has, on the recommendation of the Nomination & Remuneration Committee framed a policy for selection and appointment of Directors, Senior Management and their remuneration.

NOMINATION AND REMUNERATION COMMITTEE:

The Company had constituted the Nomination and Remuneration Committee under section 1 78 of the Companies Act, 2013.

During the Year under review the Committee was reconstituted.

(a) Composition of the Committee:

Th	e Nomination and Remuneration Committee comprises of the following members
	S. No	Name	Category of Director	Designation
	1.	Mr. Venkata Stayanarayana Reddy Chintakuntala	Independent Director	Chairperson

2.	Mr. Rama Rao Madasu	Independent Director	Member
3.	Mrs. Madhavi Latha Pasupuleti	Independent Director	Member

During the Period under review Nomination & Remuneration committee has met 5 (Five) times in a year.

(b) Selection and Evaluation of Directors;

The Board has based on recommendations of the nomination and remuneration Committee, laid down following policies:

1. Policy for Determining qualifications, Positive Attributes and Independence of a Director

2. Policy for Board & Independent Directors Evaluation

(c) Performance Evaluation of Board, Committees and Directors;

The company believes formal evaluation of the board and of the individual directors, on an annual basis, is a potentially effective way to respond to the demand for greater board accountability and effectiveness. For the company, evaluation provides an ongoing means for directors to assess their individual and collective performance and effectiveness. In addition to greater board accountability, evaluation of board members helps in;

• More effective board process

• Better collaboration and communication

• Greater clarity with regard to members roles and responsibilities

• Improved chairman - managing directors and board relations

The evaluation process covers the following aspects

- Self-evaluation of directors

- Evaluation of the performance and effectiveness of the board

- Evaluation of the performance and effectiveness of the committees

- Feedback from the non-executive directors to the chairman

- Feedback on management support to the board.

(d) Remuneration Policy for Directors

- Ensuring that the level and composition of remuneration is reasonable and sufficient to attract, retain and motivate Directors of the quality required to run the company successfully;

- Ensuring that relationship of remuneration to performance is clear and meets the performance benchmarks; and

- Ensuring that remuneration involves a balance between fixed and incentive pay reflecting short- and long-term performance objectives appropriate to the working of the company and its goals.

Management Discussion & Analysis

The Management Discussion and Analysis Report highlighting the industry structure and developments, opportunities and threats, future outlook, risks and concerns etc. is furnished separately and forms part of this report as Annexure VI.

Subsidiary Companies

The Company has one Subsidiary Company, the details of which is appended as ''Annexure I'' to this Report.

Particulars of Contracts or arrangements with related parties

All the related party transactions that were entered during the financial years were in the ordinary course of business of the company and were on arm length basis. There were no materially significant related party transactions entered by the company during the year with the promoters, directors, key managerial personnel or other persons which may have a potential conflict with the interest of the company.

The policy on related party transactions as approved by the board of directors is hosted on the website of the company viz. www.ajel.in.

Particulars of every contract or arrangements entered into by the Company with related parties referred to in sub-section (1) of section 188 of the Companies Act, 2013 including certain arm''s length transactions under third proviso thereto shall be disclosed in Form No. AOC-2 as ''Annexure II'' to this report.

Particulars of Employees

A table containing the particulars in accordance with the provisions of Section 1 97(1 2) of the Act, read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, is appended as ''Annexure III to this Report.

In terms of Section 1 36 of the Companies Act, 201 3 the same is open for inspection at the Registered Office of the Company.

Copies of this statement may be obtained by the members by writing to the Company Secretary at the Registered Office of the Company.

The ratio of the remuneration of each Director to the median employee''s remuneration and other details in terms of Section 197(12) of the Companies Act, 201 3 read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, are enclosed in Annexure - IV and forms part of this Report.

Statutory Auditors

In terms of Section 139 of the Companies Act, 2013 and the rules made there under M/s. Ramesh Athasniya & Co., Chartered Accountants (Firm Registration no. 007480S), was re-appointed as statutory auditors of the company in the 29^th Annual General Meeting for a period of five years from the conclusion of 29^th AGM.

Due to health issues M/s. Ramesh Athasniya & Co., Chartered Accountants (Firm Registration no. 007480S) has resigned, and new Auditor M/s G M K & CO LLP., (Firm Registration no. S200357) Chartered Accountants, was appointed to fill up the Casual Vacancy and his appointment was approved by the Shareholders in the Extra-Ordinary General meeting held on 1 7^th July 2024.

The Auditor was appointed in the EGM for the term of ensuing AGM, now that the auditor tenure has reached its Completion, In terms of Section 139 of the Companies Act, 2013 and the rules made thereunder, Resolution with respect to appointment of new Statutory Auditor M/s G M K & CO LLP., (Firm Registration no. S200357) Chartered Accountants, as Statutory Auditor of the company for a period of 5 years, is proposed for the members approval at the ensuing Annual General Meeting.

However, Pursuant to notification issued by the Ministry of Corporate Affairs on 7th May, 201 8 amending section 1 39 of the Companies Act, 201 3 and the rules framed there under, the mandatory requirement for ratification of appointment of auditors by the members at every Annual General Meeting ("AGM") has been omitted, and hence the company is not proposing an item on ratification of appointment of Auditors at this AGM.

Management responses to observations in Auditor''s Report

The Auditors report and noted to accounts is self-explanatory do not call for any further comments. The Auditor''s report is enclosed with the financial statement in this Annual report.

With reference to observations made in the CARO report, the following are the responses of the Management against the observation of auditor.

S. No	Audit Observation	Management Comments
1.	Statutory dues which are due payable for more than six months from the date on which they become payable.	The company will ensure to pay the statutory dues upon arrangement of funds.

Cost Audit Report

The provisions of Section 1 48 of the Companies Act, 201 3 does not apply to the Company and hence, no cost auditors are appointed.

Secretarial Audit Report

Pursuant to the provisions of Section 204 read with Section 134(3) of the Companies Act, 2013, the company is required to obtain Secretarial Audit Report from Practicing Company Secretary. CS Someswara Rao Artham, practicing company secretary was appointed to issue Secretarial Audit Report for the Financial Year 2023-24.

Secretarial Audit Report issued by CS Someswara Rao Artham, practicing company secretary in Form MR-3 for the Financial Year 2023-24 is enclosed as Annexure-V to this Report.

The following are the management''s reply to the Secretarial auditor''s observations:
S. No.	Observations of Secretarial Auditor	Management''s Reply
1.	The Company has not submitted information as required under Regulation 46 and 62 of SEBI (LODR), 2015	There was an issue with updating the company website due to technical problems. The management has since resolved the issue and is in the process of updating all relevant information.
2.	The Company is in receipt of notice from the BSE for revising the information of Corporate Governance	The management has complied with said notice and the penalty has not been paid.
3.	There were few forms filed with Delay with Registrar of Companies	Delay due to MCA technical Glitches.

As required under the provisions of SEBI LODR Regulations, a certificate confirming that none of the Directors on the Board have been debarred or disqualified by the Board/Ministry of Corporate Affairs or any such statutory authority obtained from CS Someswara Rao Artham, Practicing Company Secretaries is a part of these report.

Business Responsibility Report (BRR)

Securities Exchange Board of India (SEBI) by notification No. SEBI/LAD-NRO/GN/2019/45 dated 26.1 2.201 9 (Securities and Exchange Board of India - Listing Obligations and Disclosure Requirements) (Fifth Amendment) Regulations, 2019 has mandated the inclusion of BRR as part of the Annual Report for the top 1000 listed entities based on their market capitalization on Bombay Stock Exchange Ltd and National Stock Exchange of India Ltd as at 31^st March of every year. In view of the requirements specified, the company is not mandated for the providing the BRR and hence do not form part of this Report.

Annual Return

In accordance with Section 134(3) (a) of the Act, an Annual Return in the prescribed form MGT-7 is placed on the website of the Company at www.ajel.in.

Corporate Social Responsibility

The provisions w.r.t. CSR is not applicable to the Company. Therefore, the Company had not constituted CSR committee during the Financial Year 2023-24.

Particulars of Loans, Guarantees and Investments

Details of loans and guarantees given and investments made under Section 1 86 of the Act are provided in the Notes to the Financial Statements.

Whistle Blower Policy/Vigil Mechanism

Pursuant to the provisions of section 1 77 of the companies act, 2013 and the rules framed there under and pursuant to the applicable provision of SEBI (Listing Obligations and Disclosure Regulations), 201 5 of the listing agreement entered with stock exchanges, the company has established a mechanism through which all stake holders can report the suspected frauds and genuine grievances to the appropriate authority. The Whistle blower policy which has been approved by the board of directors of the company has been hosted on the website of the company viz. www.ajel.in.

Remuneration Policy:

The Board has, on the recommendation of the Nomination & Remuneration Committee framed a policy for selection and appointment of Directors, Senior Management and their remuneration.

Risk Management Policy

The Board of Directors has formed a Risk Management Committee to identify, evaluate, mitigate and monitor the risks associated with the business carried by the company. The committee reviews the risk management plan and ensures its effectiveness. A mechanism has been put in place which will be reviewed on regular intervals.

Policy on Sexual Harassment;

The Company has adopted policy on Prevention of Sexual Harassment of Women at Workplace in accordance with The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. During the financial year ended 31st March, 2024, the Company has not received any complaints pertaining to Sexual Harassment.

Material changes and commitments, if any, affecting the financial position of the company;

There are no material changes and commitments after the closure of the financial year, which will affect the financial position of the Company.

There are no other Material Changes and Commitments affecting the financial position of the Company which occurred between the end of the financial year to which the financial statements relate and the date of this Report.

Details of significant and material orders passed by the regulators or courts or tribunals impacting the going concern status and company''s operations in future;

No significant and material order has been passed by the regulators, courts, tribunals impacting the going concern status and Company''s operations in future.

Public Deposits

Your Company has not accepted any deposits from the public. As such, there was no principal or interest outstanding on the date of the Balance Sheet.

Particulars of Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo

Conservation of Energy which is not furnished as the relative rule is not applicable to your company.

There is no information to be furnished regarding Technology Absorption as your company has not undertaken any research and development activity in any manufacturing activity nor any specific technology is obtained from any external sources which needs to be absorbed or adapted.

Foreign Exchange Earnings and Outgo

The Foreign Exchange earned in terms of actual inflows during the year and the Foreign Exchange outgo during the year in terms of actual outflows is as follows:

Foreign Exchange Inflows : NIL Foreign Exchange Outflows : NIL

Internal Audit & Controls;

The Company has adequate Internal Financial Controls consistent with the nature of business and size of the operations, to effectively provide for safety of its assets, reliability of financial transactions with adequate checks and balances, adherence to applicable statues, accounting policies, approval procedures and to ensure optimum use of available resources. These systems are reviewed and improved on a regular basis. It has a comprehensive budgetary control system to monitor revenue and expenditure against approved budget on an ongoing basis.

Internal Financial Control Systems;

The Company has adequate Internal Financial Controls consistent with the nature of business and size of the operations, to effectively provide for safety of its assets, reliability of financial transactions with adequate checks and balances, adherence to applicable statues, accounting policies, approval procedures and to ensure optimum use of available resources. These systems are reviewed and improved on a regular basis. It has a comprehensive budgetary control system to monitor revenue and expenditure against approved budget on an ongoing basis.

Industrial Relations;

The company enjoyed cordial relations with its employees during the year under review and the Board appreciates the employees across the cadres for their dedicated service to the Company and looks forward to their continued support and higher level of productivity for achieving the targets set for the future.

Risk Management Framework;

Pursuant to SEBI (LODR) Regulations, 2015, the Board of Directors of the top 1000 Listed entities are mandated to constitute a Risk Management Committee. Since the Company is not falling under the above criteria, there is no requirement to constitute such a committee.

However, periodic assessments to identify the risk areas are carried out and management is briefed on the risks in advance to enable the Company to control risk through a properly defined plan. The risks are taken into account while preparing the annual business plan for the year.

Human Resources;

Your Company treats its "human resources" as one of its most important assets. Your Company continuously invests in attraction, retention and development of talent on an ongoing basis. A number of

programs that provide focused people attention are currently underway. Your Company thrust is on the promotion of talent internally through job rotation and job enlargement

Acknowledgements;

Your directors wish to express their appreciation of the support and co-operation of the Central and the State Government, bankers, financial institutions, business associates, employees, shareholders, customers, suppliers and alliance partners and seeks their continued patronage in future as well.

---

Mar 31, 2014

Dear members,

The Directors have pleasure in presenting the 20th Annual Report of the company on the business and operations of the company together with the Audited Accounts for the year ended 31st March 2014..

FINANCIAL RESULTS

The Standalone Financial Results of the Company for the financial year ended March 31, 2014, is summarized below.

PARTICULARS Standalone Consolidated 2014 2013 2014 2013

Income 93625912 91980309 457557107 588415572

Total Expenditure 86048698 76612160 476212205 554474815

Finance Cost 218337 187636 3898467 4507966

Depreciation 2416864 2277693 11712683 8926022

Expenditure W/off 0 0 0 0

Operating Profit/(Loss) 7577214 15368149 -18655098 33940757

Profit / (Loss) before tax 4942013 12902820 -34266248 20506769

Less: Taxes 1124936 5060575 1124936 5060575

Profit/(Loss) after tax 3817077 7842245 -35391184 15446194

EPS (equity shares, per value Rs.10 each) 0.36 0.73 -3.29 1.44

BUSINESS PERFORMANCE

The performance of your company during the year under report has shown stable over previous year. Your Company has been adopting a number of "continuous improvement" initiatives during the year.

DIVIDEND:

Keeping the company''s expansion and growth plans in mind, your Directors have decided not to recommend dividend for the year.

TRANSFER TO RESERVES

No profits are intended to be transferred to reserves during the year.

OUTLOOK

AJEL is a premier provider of full range of information technology services for the agile business. We combine strategic consulting, process innovation, custom and package software deployment, and application monitoring to rapidly deliver end-to-end business systems that create immediate bottom-line impact for our clients to achieve their business objectives.

Our Outsourcing Solution enables customers to gain efficiency in operations, minimize Costs, and keep to a strategy of staying lean, flexible and nimble. And best of all, we truly believe in collaborative partnership to provide longterm value to our clients.

DIRECTORS

Mr. Vijay Kumar Ravindra Nath was appointed as Additional Director w.e.f. 25th February, 2014 pursuant to Section 161 of the Companies Act, 2013. His term of office shall be liable to retire by rotation. In accordance with section 160 of the Companies Act, 2013, Mr. Vijay Kumar Ravindra Nath, vacates office at the ensuing Annual General Meeting and being eligible, offer himself for appointment.

In accordance with the provisions of Section l52 of the Companies Act, 2013, Mr. Jadda Amara Reddy and Ms. Vasantha Madasu retires by rotation and being eligible, has offered himself for re-appointment

The brief resume of the directors who are to be appointed/re-appointed the nature of their expertise in specific functional areas, names of companies in which they held directorships, committee memberships/chairmanships their shareholding etc., are furnished to the explanatory statement to the notice of the ensuing Annual General Meeting.

Your Directors recommend their appointment/re-appointment atthe ensuing Annual General Meeting. SUBSIDIARY COMPANY

Your company has one wholly owned subsidiary namely Ajel Technologies India Private Limited in Hyderabad, and the subsidiary has its wholly owned subsidiary namely Ajel Technologies Inc, USA.

Pursuant to the provisions of Section 212 of the Companies Act, 1956 (Act), documents in respect of the various subsidiaries Viz., Director''s Report, Auditor''s Report, Balance Sheet and Profit and Loss Account, are required to be attached to the Balance Sheet of the holding company. However, in terms of the provisions of Section 212(8} of the Act, the Government of India, Ministry of Corporate Affairs, has vide Circular No. 2/2011 dated 8th February, 2011 granted exemption from the provisions of Section 212(1) of the Act. Accordingly, the Annual Report does not contain the financial statements of the subsidiaries of the Company. However, the Company will make available the audited annual accounts and related detailed information of the subsidiaries to the shareholders upon request in accordance with the applicable law. These documents are also available for inspection atthe Registered Office of the Company during business hours.

AUDITORS AND THEIR REPORT

The Statutory Auditors of the Company M/s. Boppudi & Associates, Chartered Accountants, hold office till the conclusion of the ensuing Annual General Meeting and are eligible for re-appointment. The Company has received letter to the effect that the re-appointment, if made, would be within the prescribed limits under Section 141(3)(g) of the Companies Act, 2013 and that they are not disqualified for re-appointment.

Pursuant to Companies Act, 2013, your Company recommends the appointment of Statutory Auditors to hold office from the conclusion of the 20th Annual General Meeting till the conclusion of the 21st Annual General Meeting, subject to ratification atthe every Annual General Meeting of the Company.

The observation of the Auditors, together with the Notes to Accounts referred to in the Auditors'' Report, are self explanatory and do not call for any further explanation from the Directors.

DIRECTORS'' RESPONSIBILITY STATEMENT

Pursuant to the requirement under section 134(5} of the Companies Act, 2013 (erstwhile section 217(2AA) of the Companies Act, 1956) with respect to the Directors'' Responsibility Statement, it is hereby confirmed:

1. That in the preparation of the Accounts for the period ended March 31,2014, the applicable accounting standards have been followed along with proper explanation relating to material departures, as explained in earlier paragraph;

2. That the Directors have selected such accounting policies and applied them consistently and made judgments and estimates that were reasonable and prudent, so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit of the Company for the year under review;

3. That the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

4. That the accounts have been prepared on a ''going concern'' basis, for the period ended March 31,2014;

5. That the Company, had laid down internal financial controls and that such internal financial controls are adequate and were operating effectively.

PARTICULARS OF EMPLOYEES:

In pursuance of the provisions of section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules 1975, the Directors are to report that there are no employees who are in receipt of remuneration of Rs.60,00,000/- or more per annum or Rs.5,00,000/- or more per month where employed for a part of the year.

PUBLIC DEPOSITS:

The Company has not accepted any fixed deposits as on 31st March, 2014 so as to attract the provisions of Section 58A and 58AA of the Companies Act, 1956 read with Companies (Acceptance of the Deposits)Rules, 1975 as amended from time to time.

NEW COMPANIES BILL 2013

The new Companies Bill is a landmark in the history of Corporate India. The bill is a step towards globalization and is an attempt to meet the changing environment and is progressive and futuristic duly envisaging the technological and legal developments. Your Company will transform its policies / provisions / etc., to be in conformity with the new Companies Bill.

INFORMATION UNDER SECTION 217 (11 (el OF THE COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF BOARD OF DIRECTORS! RULES. 1988:

Conservation of Energy

Company''s operations require electrical energy for its use in air conditioning the premises, for power supply to computer systems and lighting which are not energy intensive. However, adequate measures have been taken to reduce energy consumption, wherever possible.

Technology absorption

Your company continues to use state-of-the-art technology for improving the productivity and quality of its products and services. To create adequate infrastructure, your Company continues to invest in the latest hardware and software.

To support its growth plans, the company continues to invest in global solutions that are configured consistently for its core business processes.

Research & Development

Your company will continue to focus and invest in its R & D activities in software engineering, technologies and products. Your company leverages its excellence in technology for producing World Class Products and solutions. The continual exposure to new technologies has helped maintain high motivation levels in employees and to generate higher levels of productivity, efficiency and quality. Your company continues to give due importance to research and development to maintain its leadership in the field of leading edge technologies.

Foreign Exchange Earnings & Outgo

Particulars FY2013-14 FY2013-14

Foreign Exchange Earnings: - Rs.11,900,000

Foreign Exchange Outgo : -

MANAGEMENT DISCUSSION AND ANALYSIS:

Management''s Discussion and Analysis Report for the year under review, as stipulated under Clause 49 of the Listing Agreement with the Stock Exchange in India, is presented in a separate section forming part of the Annual Report

HUMAN RESOURCES

Your Company believes that Competent Human Resources are the driving force for any Organization that enables a company to grow in leaps and bounds. The Company has been able to create a favorable work environment that encourages continuous learning and thereby leading to innovation. With vibrant work atmosphere, your Company provides an opportunity to employees to work with New Technologies. Your Company has put in place a Scalable Recruitment and Human Resources Plan, devised to attract and retain high caliber personnel.

Ajel has been fortunate in having a set of committed employees at all levels and looks forward to nurture them and retain their loyalty. The Company recognized the value of the committed workers and efforts are being made to enhance the bonding between the Company and the committed employees.

CORPORATE GOVERNANCE:

The Company is committed to maintain the highest standards of corporate governance and adhere to the corporate governance requirements set out by SEBI. The Report on corporate governance as stipulated under Clause 49 of the Listing Agreement forms part of the Annual Report.

The requisite certificate from the Practicing Company Secretary confirming compliance with the conditions of corporate governance as stipulated under the aforesaid Clause 49 is attached to the report on corporate governance.

STATEMENT PURSUANT TO LISTING AGREEMENT

The equity shares of the company are listed with the Bombay stock exchange (BSE) and Ahmedabad Stock Exchange (ASE). Your company has paid the respective Annual Listing Fees up-to-date.

ACKNOWLEDGMENTS:

Your Company is grateful to the customers and business partners for their support and encouragement especially in the time of slow economic growth. Your Board is appreciative of the passion, dedication and commitment demonstrated on the job by all the employees. Your Directors wish to place on record their gratitude to the Customers, Government, Financial Institutions, Banks and Shareholders for their continuing support, guidance, and assistance over the years.

For and on behalf of Board of Directors Place: Mumbai Sd/- Date: 29.05.2014 Srinivasa Reddy Arikatla Chairman & Managing Director

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Mar 31, 2013

To The Members,

The Directors have pleasure in presenting the Nineteenth Annual Report of the company on the Business and Operations of the Company, together with the Audited Accounts forthe year ended 31st March 2013.

FINANCIAL RESULTS

The Standalone Financial Results of the Company for the financial year ended March 31, 2013, is summarized below.

PARTICULARS (Rs. In Lacs)

2012-2013 2011-2012

Gross Turnover 910.60 642.43

Other Income 9.20 13.81

Total Income 919.80 656.24

Total Expenditure 766.12 521.87

Profit Before Interest, Depreciation & Tax 153.69 38.14

Profit before Taxes 129.03 21.16

Tax Expenses 50.61 9.53

Profit After Tax 78.42 11.33

REVIEW OF PERFORMANCE

Members will notice that the revenue from Operations climbed by 41.74% to Rs 910.60 Lacs from Rs. 642.43 Lacs of previous year. The Total Income also increased to Rs 919.80 Lacs from Rs. 656.24 Lacs of Previous year.

The Profit after Tax, for the year under review, increased to Rs.78.42 Lacs as against Rs. 11.33 Lacs of Previous Year.

The Company has identified new avenues for growth and is focusing its energies to develop business. The Company is continuously striving to improve efficiency and deliver excellence in project execution. The huge increase in turnover, is a testimony to the strength of your Company''s technical competence and execution capabilities.

DIVIDEND:

Keeping the company''s expansion and growth plans in mind, your Directors have decided not to recommend dividend forthe year.

TRANSFER TO RESEVES:

No profits are intended to be transfered to reserves during the year.

SHARE CAPITAL

The authorised share capital of the company as on March 31, 2013 is Rs. 12,00,00,000/- divided into 1,20,00,000 Equity shares of Rs. 10/-each.

Issued, subscribed and paid up capital of the company as on March 31,2013 is Rs. 10,75,00,000/- divided into 1,07,50,000 Equity shares of Rs. 10 (Rupees Ten) each

DIRECTORS

Re-Appointment:

Approval of the shareholders is being sought for the Re-appointment of Mr Darshan Dhrupadalal Majmudar and Mr. Mahender Reddy Musuku, Directors of the Company, who retire by rotation at the ensuing Annual General Meeting of the Company and being eligible offer themselves for re-appointment in accordance with the provisions of the Companies Act, 1956 and pursuant to Articles of Association of the Company. Profile of Directors who are retiring and offers re-appointment at this Annual General Meeting is furnished in the Corporate Governance Report.

Resignations:

(i) Mr Bharat Champaklal Sutaria, Chairman has resigned from his office at the Board meeting held

on 29th August 2012 (ii) Mr. Arikatla Venkateswarlu, Director has resigned from his office at the Board meeting held on

29th August 2012 The Board placed on record its sincere appreciation forthe services rendered by Mr Bharat Champaklal Sutaria and Mr. Arikatla Venkateswarlu during theirtenure as directors of the company. Change in designations:

Mr. Srinivasa Reddy Arikatla was appointed as Chairman of the Com any and was re-designated as Chairman and Managing Director at the Board meeting held on 29th August 2012.

DIRECTORS'' RESPONSIBILITY STATEMENT AS REQUIRED UNDER SECTION 217 (2AA) OF THE COMPANIES ACT, 1956.

In pursuance of Section 217(2AA) of the Companies Amendment Act, 1956 your directors confirm

i) That the directors in the preparation of the annual accounts the applicable accounting standards have been followed along with proper explanations relating to material departures.

ii) That the directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year.

iii) That the directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safe guarding the assets of the company and for preventing and deleting fraud and other irregularities.

iv) That the directors had prepared the annual accounts on the going concern basis.

CORPORATE GOVERNANCE

Ajel has always been devoted to adopting and adhering to the best corporate governance practices recognized globally. The company understands and respects its fiduciary role and responsibility towards stakeholders and the society at large, and strives hard to serve their interest, resulting in creation of value and wealth for all stakeholders.

The Compliance Report on Corporate Governance and a Certificate from Auditor of the Company regarding compliance of the conditions of Corporate Governance, as stipulated under Clause 49 of Listing Agreement is annexed separately to this Annual report.

Certificate of the CEO/CFO, inter alia confirming the correctness of the financial statement, compliance with

Company''s Code of Conduct, adequacy of the internal control measures and reporting of matters to the Audit Committee in terms of Clause 49 of the Listing Agreement.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

The Management''s Discussion and Analysis forms part of the Annual Report.

SUBSIDIARIES

We have one wholly owned subsidiary namely Ajel Technologies India Private Limited at Hyderabad, and said subsidiary company has its wholly owned subsidiary namely Ajel Technologies Inc, USA which is a step down subsidiary of our company.

Pursuant to section 212(8) of the Act, the Ministry of Corporate Affairs vide its circular dated February 8,2012, has granted General Exemption from attaching Balance Sheet, Profit and Loss Account and other Documents of the Subsidiary Companies with the Annual report of the parent Company. Accordingly the company has availed an exemption from attaching the Balance Sheet, Profit and Loss Account and other Documents of the Subsidiary Companies.

A statement containing brief particulars of the subsidiaries for the Financial Year ended 31.03.2013 is annexed. The annual accounts of the subsidiary companies and the related detailed information shall be made available to shareholders of the holding and subsidiary companies seeking such information at any point of time. The annual accounts of the subsidiary companies shall also be kept for inspection by any shareholders in the registered office of the holding company and of the subsidiary companies concerned.

BRANCHES

The Company has three branches at HYDERABAD, MUMBAI and NEW JERSEY - USA which are fully equipped and operating actively.

CONSOLIDATED FINANCIAL STATEMENTS

In compliance with Clause 32 of the Listing Agreement entered into with the Stock Exchanges by the Company and in compliance with the Accounting Standards AS -21 and AS - 27 on consolidated financial statements, read with the Accounting Standard AS - 23 on Accounting for investments in Associates, your Directors have pleasure in attaching the consolidated financial statements for the financial year ended March 31, 2013, which from a part of this Annual Report.

AUDITORS

The auditors M/s . Boppudi & Associates., Chartered Accountants, retire at the ensuing Annual General Meeting and have expressed their willingness for re-appointment.

The Board recommends the re-appointment of M/s. Boppudi & Associates, Chartered Accountants, as Statutory Auditors of the Company. The Board has received their offer in writing about their willingness for appointment as Statutory Auditors of the Company along with Certificate under Section 224(1B) of the Companies Act, 1956.

The Board of Directors and the Committees thereof recommend their re-appointment. Appropriate resolutions form part of the Agenda of the Annual General Meeting

PUBLIC DEPOSITS

We have not accepted any deposits from Public and, as such, no amount of principal or interest was outstanding as of the Balance Sheet date.

ISO 9001:2008

Your Company continues to maintain its Certification as per International Standards ISO 9001:2008 Quality Management System and your Company isfully committed to continually improve upon the implemented QMS

PARTICULARS OF EMPLOYEES:

In terms of the provisions of Section 217 (2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules, 1975 and any amendments thereof, no employees are drawing remuneration in excess of the prescribed limits.

INFORMATION UNDER SECTION 217 (1) (e) OF THE COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF BOARD OF DIRECTORS) RULES, 1988:

CONSERVATION OF ENERGY

Your Company consumes electricity mainly for the operation of its computers. Though the consumption of electricity is negligible as compared to the turnover of the company, your company has taken effective steps at every stage to reduce consumption of electricity.

TECHNOLOGY ABSORPTION

This is not applicable to your company as it has not purchased or acquired any Technology for development of software from any outside party.

RESEARCH & DEVELOPMENT

Research & Development (R&D) center set-up in Hyderabad has been concentrating in developing services process / system to improve the quality of the service at minimal cost. R&D enhancements, innovative process and systems bring additional value to all our customers. R&D continually concentrate to improve services and processes using the effective quality management system and testing methodology, by implementing changes required to maintain the quality standard.

FOREIGN EXCHANGE EARNINGS & OUTGO

Foreign Exchange Earnings : Rs. 11,900,000/-

Foreign Exchange Outgo : NIL

HUMAN RESOURCES MANAGEMENT

Our employees are our vital and most valuable assets. We have created a favorable work environment that encourages innovation and meritocracy. With vibrant work atmosphere, your Company provides an opportunity to employees to work with New Technologies. Your Company has put in place a Scalable Recruitment and Human Resources Plan, devised to attract and retain high caliber personnel.

Ajel has been fortunate in having a set of committed employees at all levels and looks forward to nurture them and retain their loyalty. The Company recognized the value of the committed workers and efforts are being made to enhance the bonding between the Company and the committed employees.

STATEMENT PURSUANTTO LISTING AGREEMENT

The equity shares of the company are listed with the Bombay Stock Exchange Limited (BSE) and Ahmedabad Stock Exchange (ASE) Limited.

ACKNOWLEDGMENTS:

We thank our customers, vendors, investors and bankers for their continued support during the year. We place on record our appreciation of the contribution made by our employees at all levels. Our consistent growth was made possible by their hard work, solidarity, cooperation and support.

For and on behalf of Board of Directors

Place: Hyderabad Sd/- Sd/-

Date: 17.06.2013 Vijay Sanatbhai Chokshi Srinivasa Reddy Arikatla

WholeTime Director Chairman & Managing Director

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Mar 31, 2012

The Directors have pleasure in presenting the Eighteenth Annual Report of the company on the Business and Operations of the Company, together with the Audited Accounts for the year ended 31st March 2012.

FINANCIAL RESULTS

The Standalone Financial Results of the Company for the financial year ended March 31, 2012, is summarized below.

PARTICULARS (Rs. In Lacs)

2011-2012 2010-2011

Gross Turnover 642.43 407.01

Other Income 13.81 11.81

Total Income 656.24 418.82

Total Expenditure 521.87 208.85

Profit Before Interest, Depreciation & Tax 38.14 130.71

Profit before Taxes 21.16 112.48

Tax Expenses 9.83 11.95

Profit After Tax 11.33 100.52

REVIEW OF PERFORMANCE

Members will notice that the revenue from Operations climbed by 57.84% to Rs. 642.43 Lacs from Rs.407.01 Lacs of previous year. The Total Income also increased to Rs.656.24 Lacs from Rs.418.82 Lacs of Previous Year.

The Profit after Tax, for the year under review, decreased to Rs. 11.33 Lacs as against Rs.112.48 Lacs of Previous Year, due to huge expenditure incurred on account of Employee Benefits and Administration Expenses.

The company has identified new avenues for growth and is focusing its energies to develop business. The company is continuously striving to improve efficiency and deliver excellence in project execution. The huge increase in turnover, is a testimony to the strength of your company's technical competence and execution capabilities.

DIVIDEND:

Keeping the company's expansion and growth plans in mind, your Directors have decided not to recommend dividend for the year.

TRANSFER TO RESEVES:

No profits are intended to be transfered to reserves during the year.

DIRECTORS

Approval of the shareholders is being sought for re-appointment of Mr. Bharath Champaklal Sutaria and Mr. Vijay Sanatbhai Choskhi, who retire by rotation at forth coming Annual General Meeting of the company and being eligible, offer themselves for re-appointment in accordance with article 104 of the Articles of Association and Companies Act, 1956.

Ms. Vasantha Madasu was inducted as Additional Director on the Board during the year under review as per provisions of section 260 of the Companies Act, 1956, she holds office only upto the date of this Annual General Meeting of the Company. Approval of the shareholders is being sought for her appointment as director, liable to retire by rotation, at the ensuing Annual General Meeting of the Company under Section 257 of the Companies Act, 1956.

The brief resume of the Directors who are to be appointed/re-appointed are furnished to the Explanatory Statement to the notice of the ensuing Annual General Meeting as Annexure A.

DIRECTORS RESPONSIBILITY STATEMENT AS REQUIRED UNDER SECTION 217(2AA) OF THE COMPANIES ACT. 1956.

In pursuance of Section 217(2AA) of the Companies Act, 1956, your Directors confirm:

1. that the Directors in the preparation of the Annual Accounts the applicable Accounting standards have been followed along with proper explanations relating to material departures.

2. that the Directors have selected such Accounting Policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year.

3. that the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the Assets of the Company and for preventing and deleting fraud and other irregularities.

4. that the Directors had prepared the Annual Accounts on the ongoing concern basis.

CORPORATE GOVERNANCE

Ajel Limited has always been devoted to adopting and adhering to the best Corporate Governance practices recognized globally. The Company understands and respects its fiduciary role and responsibility towards stakeholders and the society at large, and strives hard to serve their interest, resulting in creation of value and wealth for all stakeholders.

The Compliance report on Corporate Governance and Certificate from Auditor of the Company Regarding Compliance of the conditions of Corporate Governance, as stipulated under Clause 49 of the Listing Agreement is Annexed separately to this Annual Report.

Certificate of the CEO/CFO, inter alia confirming the correctness of the financial statement, compliance with Company's Code of Conduct, adequacy of the internal control measures and reporting of matters to the Audit Committee in terms of Clause 49 of the Listing Agreement.

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

The Management's Discussion and Analysis forms part of the Annual Report.

SUBSIDIARIES

We have two subsidiary companies namely Ajel Technologies India Private Limited in Hyderabad, and Ajel Technologies lnc, USA.

Pursuant to section 212(8) of the Act, the Ministry of Corporate Affairs vide its circular dated February 8, 2012, has granted General Exemption from attaching Balance Sheet, Profit and Loss Account and other Documents of the Subsidiary Companies with the Annual report of the parent Company. Accordingly the company has availed an exemption from attaching the Balance Sheet, Profit and Loss Account and other Documents of the Subsidiary Companies.

A statement containing brief particulars of the subsidiaries for the Financial Year ended 31.03.2012 is annexed. The annual accounts of the subsidiary companies shall also be kept for inspection during business hours at our registered office of the company.

AUDITORS

The auditors M/s K N Murthy & Co., Chartered Accountants, retire at the ensuing Annual General Meeting and have expressed their unwillingness to be re-appointed.

The Board recommends appointment of M/s Boppudi & Associates, Chartered Accountants, as Statutory Auditors of the Company. The Board has received in writing their willingness for appointment as Statutory Auditors of the Company along with Certificate under Section 224(1B) of the Companies Act, 1956.

The Board of Directors and the Committees thereof recommend their re-appointment. Appropriate resolutions form part of the Agenda of the Annual General Meeting.

PUBLIC DEPOSITS

We have not accepted any deposits from Public and, as such, no amount of principal or interest was outstanding as of the Balance Sheet date.

ISO 9001:2008

Your Company continues to maintain its Certification as per International Standards ISO 9001:2008 Quality Management System and your Company is fully committed to continually improve upon the implemented QMS

HUMAN RESOURCES

Employees are our vital and most valuable assets. We have created a favorable work environment that encourages innovation and meritocracy. With vibrant work atmosphere, your Company provide an opportunity to employees to work with New Technologies. Your Company has put in place a Scalbele Recruitment and Human Resources Plan, devised to attract and retain high caliber personnel.

Ajel Limited has been fortunate in having a set of committed employees at all levels and looks forward to nurture them and retain their loyalty. The Company recognized the value of the committed workers and efforts are being between the Company and the committed employees.

PARTICULARS OF EMPLOYEES:

In terms of the provisions of Section 217 (2A) of the Companies Act, 1956, read with the Companies (Particulars of Employees) Rules, 1975 and any amendments thereof, no employees are drawing remuneration in excess of the prescribed limits.

INFORMATION UNDER SECTION 217( 1)(e) OFTHE COMPANIES ACT. 1956REAPWITH (DISCLOSURE OF PARTICULARS IN THE REPORT OF BOARD OF DIRECTORS) RULES. 1988:

CONSERVATION OF ENERGY

Your company consumes electricity mainly for the operation of its computers. Though the consumption of electricity is negligible as compared to the turnover of the company, your company has taken effective steps at every stage to reduce consumption of electricity.

TECHNOLOGY ABSORPTION

This is not applicable to your company as it has not purchased or acquired any Technology for development of software from any outside party.

RESEARCH & DEVELOPMENT

Research & Development ( R&D) center set-up in Hyderabad has been concentrating in developing products and production process/system to improve the quality of the product at minimal cost. R & D enhancements, innovative process and production technology bring additional value to all customers. R & D continually concentrate to improve products, service and processes using the effective quality management system and testing methodology, by implementing changes required to maintain the quality standard.

FOREIGN EXCHANGE EARNINGS & OUTGO

Foreign Exchange Earnings : Rs. 5,07,48,915/-

Foreign Exchange Outgo : Rs. 9,94,651/-

STATEMEIMTPURSUANTTOLISTING AGREEMENT

The equity shares of the company are listed with the Bombay Stock Exchange Limited (BSE) and Ahmedabad Stock Exchange Limited (ASE).

ACKNOWLEDGMENTS:

We thank our customers, vendors, investors and bankers for their continued support during the year. We place on record our appreciation of the contribution made by our employees at all levels. Our consistent growth was made possible by their hard work, solidarity, cooperation and support.

By order of the Board of Directors

Place: Mumbai Sd/- Sd/-

Date: 03.08.2012 Vijay Sanatbhai Chokshi Srinivasa Reddy Arikatla

Whole Time Director Vice Chairman & Managing Director

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Mar 31, 2011

The Members,

The Directors have pleasure in presenting the 17th Annual Report of the company on the business and operations of the company together with the Audited Accounts for the year ended 31st March 2011

FINANCIAL RESULTS

Consolidated Standalone

For the year ended 31 March 2011 2010 2011 2010

Income 70,51,12,142 48,11,06,807 4,18,81,586 1,28,02,458

Total Expenditure 65,58,19,321 45,27,30,486 2,88,10,693 1,72,07,748

Finance Cost 44,42,364 26,70,252 14,47,494 2,47,493

Depreciation 11,99,847 10,87,847 2,35,163 2,05,368

Expenditure W/off 1,50,901 1,50,901 1,40,400 1,40,400

Profit / (Loss) before tax 4,34,99,710 2,44,67,321 1,12,47,836 (49,98,551)

Less: Taxes 1,58,25,761 1,41,17,977 11,95,792 -

Profit / (Loss) after tax 2,76,73,949 1,03,49,344 1,00,52,044 (49,98,551)

EPS (equity shares, par value 2.73 1.02 0.99 (0.49) Rs.10 each)

BUSINESS PERFORMANCE:

The performance of your company during the year under report has shown significant improvement over previous year, the total consolidated turnover for the year ended 31st March, 2011 amounted to Rs. 70,51,12,142/- as against Rs. 48,11,06,807/- in the previous year. Your Company has been successful in adopting a number of "continuous improvement" initiatives during the year, which has helped in controlling costs and hence resulting good profits for the year wiping out the complete previous years losses and getting into positive Net worth after a long time on a consolidated basis as per Indian GAAP Accounting.

DIVIDEND:

Keeping the Company's expansion and growth plans in mind, your Directors have decided not to recommend dividend for the year.

RESERVES & SURPLUS

During the year under review the Company has transferred Rs. 2,76,73,949/- to Reserves and Surplus.

OUTLOOK

AJEL is a premier provider of full range of information technology services for the agile business. We combine strategic consulting, process innovation, custom and package software deployment, and application monitoring to rapidly deliver end-to-end business systems that create immediate bottom- line impact for our clients to achieve their business objectives.

Our Outsourcing Solution enables customers to gain efficiency in operations, minimize Costs, and keep to a strategy of staying lean, flexible and nimble. And best of all, we truly believe in collaborative partnership to provide long-term value to our clients.

We are increasing our focus on key growth areas namely Banking & Financial Services (BFSI), Healthcare, Media & Entertainment, Information Management, Mobility Solutions and Professional Services. We have a strong focus on the domestic market in India for localized software products and eGovernance initiatives at the gram panchayat levels. We believe this diversified approach will allow us to create long-term value for our shareholders.

Harnessing the pooled computing resources delivered over the Internet, Ajel Cloud Computing Services provides an agile cloud infrastructure designed to provide rapid access to security-rich, enterprise-class virtual server environments, well suited for development and test activities and other dynamic workloads. Depending on the platform, an application can scale dynamically and increase its share of resources on-the-fly to meet increasing traffic demands or huge traffic spikes. And on other hand Technology Services, Enterprise Solutions, Mobility Solutions etc

Ajel has partnered with Futura Retail Solution AG, a leading retail merchandise management solution provider for the fashion and lifestyle industry in Germany and Europe to market, deploy, and support the solution for the Indian market. It offers FuturERS, an integrated retail management system that serves various areas of a company through which an item passes, such as order planning, moves on, goods received, checking of supplier invoices, allocating the goods to the branches, PC POS or touch POS, customer order, replenishment, inter branch transfer, integrated financial accounting, statistical analyses, and automated data exchange with the branches.

Futura Retail Solution AG was founded in 1975 and is based in Stelle, Germany with an additional office in Horgen, Switzerland. Futura is specifically developed for multi site specialty retailers, in over 30 countries worldwide. Futura was launched in 1992 as one of the first fully integrated retail management systems. There are currently more than 35,000 FuturERS installations worldwide running our enterprise retail software.

Today, FuturERS is one of the most affordable, proven and reliable solutions available. Despite being so simple to use, it can analyze profits and fine tune promotional activity, yet be rapidly deployed to meet the most demanding timescales.

However, during the current financial year the company will continue to focus on acquisitions to achieve the growth in business in view of global economic slow down and more so in US. US Economy is on recovery path and we do hope to have a marginal organic growth in the current fiscal which we wish to grow significantly in the in-organic growth through acquisitions. The Company proposes to pass an enabling resolution to raise the funds for the said acquisitions.

DIRECTORS:

As per Section 255 of Companies Act , 1956 and in terms of Article 104 of the Articles of Association of the Company Mr. Jadda Amara Reddy and Mr. Venkateswarlu Arikatla retire by rotation at the ensuing Annual General Meeting and being eligible, offers themselves for reappointment in terms of Article 105 of the Articles of Association of the company.

The brief resume of the directors who are to be appointed/re-appointed the nature of their expertise in specific functional areas, names of companies in which they held directorships, committee memberships/chairmanships their shareholding etc., are furnished to the explanatory statement to the notice of the ensuing Annual General Meeting.

SUBSIDIARY COMPANY

Your company has one wholly owned subsidiary namely Ajel Technologies India Private Limited in Hyderabad, and the subsidiary has its wholly owned subsidiary namely Ajel Technologies Inc, USA. The Director's report including balance sheet and profit & loss account for the year ended 31st march, 2011 of the subsidiary companies have been attached to this report.

ISO 9001: 2008

Your Company continues to maintain its Certification as per International Standards ISO 9001:2008 Quality Management System and your Company is fully committed to continually improve upon the implemented QMS

CHANGE OF NAME OF THE COMPANY

During the year the Name of the company has been changed to Ajel Limited. The Members of the Company accorded their consent in the 16th Annual General Meeting.

BRANCH OFFICES

During the year your company has opened a branch in Bangalore, India and NJ, USA.

AUDITORS AND THEIR REPORT

The Statutory Auditors of the company M/s. KN Murthy & Co., Chartered Accountants, Hyderabad, who will retire at the conclusion of the ensuing Annual General Meeting and are eligible for reappointment as statutory auditor for the financial year 2011-12. They have furnished a certificate to the effect that their proposed re-reappointment, if made, would be within the limit prescribed under section 224(1B) of the Companies Act, 1956, and that they are not disqualified for such re-appointment within the meaning of Section 226 of the Companies Act, 1956.

The observation of the Auditors, together with the Notes to Accounts referred to in the Auditors' Report, are self explanatory and do not call for any further explanation from the Directors.

DIRECTORS' RESPONSIBILITY STATEMENT

In pursuance of Section 217(2AA) of the Companies Amendment Act, 2000 your directors confirm

i) That the directors in the preparation of the annual accounts the applicable accounting standards have been followed along with proper explanations relating to material departures.

ii) That the directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year.

iii) That the directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safe guarding the assets of the company and for preventing and deleting fraud and other irregularities.

iv) That the directors had prepared the annual accounts on the going concern basis.

PARTICULARS OF EMPLOYEES:

No employee was in receipt of remuneration exceeding the limits prescribed under section 217(2A) of the Companies Act, 1956 and the rules framed there under, as amended to date.

PUBLIC DEPOSITS:

Your company has not accepted any deposits falling under Section 58A of the Companies Act, 1956 read with the Companies (Acceptance of Deposits) Rules 1975 during the year.

INFORMATION UNDER SECTION 217 (1) (e) OF THE COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF BOARD OF DIRECTORS) RULES, 1988:

Conservation of Energy

Your Company consumes electricity mainly for the operation of its computers. Though the consumption of electricity is negligible as compared to the turnover of the company, your company has taken effective steps at every stage to reduce consumption of electricity.

Technology absorption

This is not applicable to your company as it has not purchased or acquired any Technology for development of software from any outside party.

Research & Development

Research & Development (R&D) center set-up in Hyderabad has been concentrating in developing products and production process/ system to improve the quality of the product at minimal cost. R&D enhancements, innovative process and production technology bring additional value to all our customers. R&D continually concentrate to improve products, service and processes using the effective quality management system and testing methodology, by implementing changes required to maintain the quality standard.

MANAGEMENT DISCUSSION AND ANALYSIS:

Management's Discussion and Analysis Report for the year under review, as stipulated under Clause 49 of the Listing Agreement with the Stock Exchange in India, is presented in a separate section forming part of the Annual Report

HUMAN RESOURCES

Your Company believes that Competent Human Resources are the driving force for any Organization that enables a company to grow in leaps and bounds. The Company has been able to create a favorable work environment that encourages continuous learning and thereby leading to innovation. With vibrant work atmosphere, your Company provides an opportunity to employees to work with New Technologies. Your Company has put in place a Scalable Recruitment and Human Resources Plan, devised to attract and retain high caliber personnel.

Ajel has been fortunate in having a set of committed employees at all levels and looks forward to nurture them and retain their loyalty. The Company recognized the value of the committed workers and efforts are being made to enhance the bonding between the Company and the committed employees.

CORPORATE GOVERNANCE:

Ajel has always been devoted to adopting and adhering to the best corporate governance practices recognized globally. The company understands and respects its fiduciary role and responsibility towards stakeholders and the society at large, and strives hard to serve their interest, resulting in creation of value and wealth for all stakeholders.

The Compliance Report on Corporate Governance and a Certificate from Auditor of the Company regarding compliance of the conditions of Corporate Governance, as stipulated under Clause 49 of Listing Agreement is annexed separately to this Annual report.

Certificate of the CEO/CFO, inter alia confirming the correctness of the financial statement, compliance with Company's Code of Conduct, adequacy of the internal control measures and reporting of matters to the Audit Committee in terms of Clause 49 of the Listing Agreement.

STATEMENT PURSUANT TO LISTING AGREEMENT

The equity shares of the company are listed with the Bombay stock exchange (BSE) and Ahmedabad Stock Exchange Limited. Your company has paid the respective Annual Listing Fees up-to-date. The company has provided corporate Governance Report and cash flow statement in this Annual report and other required details.

ACKNOWLEDGEMENT:

Your Directors place on record their gratitude to the Central Government, State Governments and company's Banker for the assistance, co-operation and encouragement they extended to the company. Your Directors also wish to place on record their sincere thanks and appreciation for the continuing support and unstinting efforts of Investors, Dealers, Business Associates and Employees in ensuing an excellent all around operational performance.

For and on Behalf of Directors Place: Hyderabad Date: 11-08-2011

Sd/- Sd/-

VIJAY S CHOKSHI SRINIVASA REDDY ARIKATLA

Whole Time Director Managing Director

---

Mar 31, 2010

The Directors have pleasure in presenting the 16th Annual Report of the company on the business and operations of the company together with the Audited Accounts for the year ended 31st March 2010

FINANCIAL RESULTS

Standalone

For the year ended 31 March 2010 2009

Income 1,28,02,458 36,51,157

Total Expenditure 1,72,07,748 16,50,598

Finance Cost 2,47,493 -

Depreciation 2,05,368 2,05,368

Expenditure W/off 1,40,400 1,05,300

Operating Profit/(Loss) (44,05,290) 20,00,559

Profit / (Loss) before tax (49,98,551) 16,89,891

Less:Taxes - 6,200

Profit /(Loss) after tax (49,98,551) 16,83,691

EPS (equity shares, par value Rs.10 each) (0.49) 0.17

For the year ended 31 March Consolidated

2010 2009

Income 48,11,06,807 42,67,43,156

Total Expenditure 45,27,30,486 40,11,52,004

Finance Cost 26,70,252 32,02,197

Depreciation 10,87,847 9,59,232

Expenditure W/off 1,50,901 1,15,801

Operating Profit /(Loss) 2,83,76,321 2,55,91,152

Profit / (Loss) before tax 2,44,67,321 2,13,13,922

Less:Taxes 1,41,17,977 50,296

Profit / (Loss) after tax 1,03,49,344 2,12,63,626

EPS (equity shares, par value Rs.1 0 each) 1.02 2.10

BUSINESS PERFORMANCE:

The performance of your company during the year under report has shown significant improvement over previous year, the total consolidated turnover for the year ended 31 st March, 2010 amounted to Rs.48,11,06,807 as against Rs.42,67,43,156 in the previous year. Your Company has been successful in adopting a number of "continuous improvement" initiatives during the year, which has helped in controlling costs and hence resulting good profits for the year wiping out the complete previous years losses and getting into positive Net worth after a long time on a consolidated basis as per Indian GAAP Accounting.

DIVIDEND:

Evaluating the company on finanacial fronts. Your directors are of the view the financial resource needs to be diverted and utilised for

the purpose of undertaking various expansion and growth activities.

Thus to conserve the financial reserves of the company your directors have decided not to recommend dividend for the year under

review.

RESERVES & SURPLUS

During the year under review the Company has transferred Rs.1,03,49,344/- to Reserves and Surplus.

OUTLOOK

AJEL is a premier provider of full range of information technology services for the agile business. We combine strategic consulting, process innovation, custom and package software deployment, and application monitoring to rapidly deliver end-to-end business systems that create immediate bottom-line impact for our clients to achieve their business objectives.

Our Outsourcing Solution enables customers to gain efficiency in operations, minimize Costs, and to keep a strategy of staying lean, flexible and nimble. And best of all, we truly believe in collaborative partnership to provide long-term value to our clients.

We are increasing our focus on key growth areas namely Banking & Financial Services (BFSI), Healthcare, Media & Entertainment, Information Management, Mobility Solutions and Professional Services. We have a strong focus on the domestic market in India for localized software products and eGovernance initiatives at the gram panchayat levels. We believe this diversified approach will allow us to create long-term value for our shareholders. In order to strengthen the Healthcare vertical, Ajel has recently initiated steps to acquire RTEngines Software Private Limited.

Ajel is looking to increase revenue through strengthning customer relationship. Your company is the technology partner and provided necessary software and support for the development of the portal called efreshindia.com and given the linkage to the international portal efresh.com and your company has agreed to give support service to a portal, with which your company generates 6% revenue from the portal.

However, during the current financial year the company will continue to focus on acquisitions to achieve the growth in business in view of global economic slow down and more so in US. US Economy is on recovery path and we do hope to have a marginal organic growth in the current fiscal which we wish to grow significantly in the in-organic growth through acquisitions.The Company proposes to pass an enabling resolution to raise the funds for the said acquisitions.

DIRECTORS

During the year Mr.Mahender R. Musuku was appointed as Additional Director of the company on 07th July, 2010. He shall hold office upto the date of the ensuing Annual General Meeting of the company and being eligible, offer himself for appointment. Respective resolutions for the appointment of said person as Director of the Company are proposed for your approval.

As per Section 256 of Companies Act, 1956 and in terms of Article 104 of the Articles of Association of the Company Mrs. Malathy Bhimavarapu and Mr.Darshan D Majmudar retire by rotation at the ensuing Annual General Meeting and being eligible, offers themselves for reappointment in terms of Article 105 of the Articles of Association of the company.

The brief resume of the directors who are to be appointed/re-appointed the nature of their expertise in specific functional areas, names of companies in which they held directorships, committee memberships/chairmanships their shareholding etc., are furnished to the explanatory statement to the notice of the ensuing Annual General Meeting.

Your Directors recommend their appointment / re-appointment at the ensuing Annual General Meeting.

SUBSIDIARY COMPANY

Your company has one wholly owned subsidiary namely Ajel Technologies India Private Limited in Hyderabad, and the subsidiary has its wholly owned subsidiary namely Ajel Technologies Inc, USA. The Directors report including balance sheet and profit & loss account for the year ended 31st March, 2010 of the subsidiary companies have been attached to this report.

AMALGAMATION

Your companys Board of Directors met and approved on July 22,2010 the scheme of amalgamation of RT Engines Software Private Limited, Mumbai with Ajel Infotech Limited under Section 391 -394 of the Companies Act, 1956.The Board of Directors also accepted the valuation report submitted by M/s. Mark Corporate Advisors Private Limited, appointed for the purpose of recommending the share exchange ratio.

The benefits of the proposed Scheme of Amalgamation and Arrangement are:

* Mobilizing greater resources that would enable the company to participate in upcoming projects.

* Unlock value in operating assets

* Best positioned to make decisions on efficient utilization of resources (i.e. devolopment locations, product location decisions, R&D investments, etc) without any conflict of interests

* Synergies to be derived from dove tailing of operations, sourcing etc

The scheme envisages an exchange ratio of 7 (Seven) equity shares of Ajel Infotech Limited for every 2 (Two) equity shares of RTEngines Software Private Limited. The proposed Scheme is subject to the requisite approval of the shareholders / creditors of the Company, the shareholders / creditors of the transferor Companies, other statutory authorities in the respective jurisdictions and subject to the sanction / confirmation by Honorable High Court of Judicature at Bombay and any other appropriate authority.

AUDITORS AND THEIR REPORT

The Statutory Auditors of the company M/s. KN Murthy & Co., Chartered Accountants, Hyderabad, retire in the ensuing Annual General Meeting being offer themselves for re-appointment as statutory auditor for the financial year 2010-11.

A certificate has also been furnished a to the effect that their proposed re-reappointment, if made, would be within the limit prescribed under section 224(1 B) of the Companies Act, 1956, and that they are not disqualified for such re-appointment within the meaning of Section 226 of the Companies Act, 1956.

The observation of the Auditors, together with the Notes to Accounts referred to in the Auditors Report, are self explanatory and do not call for any further explanation from the Directors.

DIRECTORS RESPONSIBILITY STATEMENT

In pursuance of Section 217{2AA) of the Companies Amendment Act, 2000 your directors confirm

i) That the directors in the preparation of the annual accounts the applicable accounting standards have been followed along with proper explanations relating to material departures.

ii) That the directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year.

iii) That the directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safe guarding the assets of the company and for preventing and deleting fraud and other irregularities.

iv) That the directors had prepared the annual accounts on the going concern basis.

PARTICULARS OF EMPLOYEES

No employee was in receipt of remuneration exceeding the limits prescribed under section 217(2A) of the Companies Act, 1956 and the rules framed there under, as amended to date.

PUBLIC DEPOSITS

Your company has not accepted any deposits falling under Section 58A of the Companies Act, 1956 read with the Companies (Acceptance of Deposits) Rules 1975 during the year.

INFORMATION UNDER SECTION 217(1) (e) OF THE COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF BOARD OF DIRECTORS) RULES, 1988

Conservation of Energy

Your Company consumes electricity mainly for the operation of its computers. Though the consumption of electricity is negligible as compared to the turnover of the company, your company has taken effective steps at every stage to reduce consumption of electricity.

Technology absorption

This is not applicable to your company as it has not purchased or acquired any Technology for development of software from any outside party.

Research & Development

Research & Development (R&D) center set-up in Hyderabad has been concentrating in developing products and production process/ system to improve the quality of the product at minimal cost. R&D enhancements, innovative process and production technology bring additional value to all our customers. R&D continually concentrate to improve products, service and processes using the effective quality management system and testing methodology, by implementing changes required to maintain the quality standard.

Foreign Exchange Earnings & Outgo

Foreign Exchange Earnings : Nil

Foreign Exchange Outgo : Nil

MANAGEMENT DISCUSSION AND ANALYSIS

Managements Discussion and Analysis Report for the year under review, as stipulated under Clause 49 of the Listing Agreement with the Stock Exchange in India, is presented in a separate section forming part of the Annual Report

HUMAN RESOURCES

Your Company believes that Competent Human Resources are the driving force for any Organization that enables a company to grow in leaps and bounds. The Company has been able to create a favorable work environment that encourages continuous learning and thereby leading to innovation. With vibrant work atmosphere,your Company provides an opportunity to employees to work with New Technologies. Your Company has put in place a Scalable Recruitment and Human Resources Plan, devised to attract and retain high caliber personnel.

Ajel has been fortunate in having a set of committed employees at all levels and looks forward to nurture them and retain their loyalty. The Company recognized the value of the committed workers and efforts are being made to enhance the bonding between the Company and the committed employees.

CORPORATE GOVERNANCE

Ajel has always been devoted to adopting and adhering to the best corporate governance practices recognized globally. The company understands and respects its fiduciary role and responsibility towards stakeholders and the society at large, and strives hard to serve their interest, resulting in creation of value and wealth for all stakeholders.

The Compliance Report on Corporate Governance and a Certificate from Auditor of the Company regarding compliance of the conditions of Corporate Governance, as stipulated under Clause 49 of Listing Agreement is annexed separately to this Annual report.

Certificate of the CEO/CFO, inter alia confirming the correctness of the financial statement, compliance with Companys Code of Conduct, adequacy of the internal control measures and reporting of matters to the Audit Committee in terms of Clause 49 of the Listing Agreement.

STATEMENT PURSUANT TO LISTING AGREEMENT

The equity shares of the company are listed with the Bombay stock exchange (BSE).Your company has paid the respective Annual Listing Fees up-to-date. The company has provided corporate Governance Report and cash flow statement in this Annual report and other required details.

ACKNOLEDGMENTS

Your Directors place on record their gratitude to the Central Government, State Governments and companys Banker for the assistance, co-operation and encouragement they extended to the company. Your Directors also wish to place on record their sincere thanks and appreciation for the continuing support and unstinting efforts of Investors, Dealers, Business Associates and Employees in ensuing an excellent all around operational performance.

For and on Behalf of AJEL INFOTECH LIMITED

Sd/- Sd/-

Place: Hyderabad MALATHY BHIMAVARAPU SRINIVASA REDDY ARIKATLA Date: 28-08-2010 Director Managing Director