Accounting Policies of Ajel Ltd. Company

Mar 31, 2014

1.1 Accounting Policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles and mandatory accounting standards issued by the Institute of Chartered Accountants of India.

1.2 Basis of Accounting

The financial statements are prepared in accordance with the relevant presentation requirements of the Revised Schedule VI of the Companies Act, 1956 under the Historical cost convention on the basis of going concern and accrual unless otherwise stated.

1.3 Revenue recognition

Revenue is primarily derived from Software development, Consulting and allied services. Arrangements for software development and related services are either on fixed-price and fixed-timeframe or on a time and material basis. Revenue from fixed-price and fixed-time frame contracts , where there is no uncertainly as to measurement or collectability of consideration is recognised based on percentage-completion method. Where there is uncertainity as to measurement or collectability revenue recognition is postponed until such uncertainity is resolved. Revenue from fixed-price maintenance contracts are recognised ratably over the period in which services are rendered.

1.4 Fixed Assets

Fixed Assets are stated at cost less depreciation. The company capitalizes all costs incidental to acquisition and installation of Fixed Assets. Depreciation on fixed assets is provided on WDV method at the rates prescribed in Schedule XIV of the Companies Act, 1956.

1.5 Preliminary Expenses and Pre Operative Expenses

Preliminary Expenses and Pre Operative Expenses are to be amortized over a period often years from the date of commencement of commercial activities.

1.6 Taxon Income

Current tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets are not recognized on unabsorbed depreciation and carry forward of losses unless there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

1.7 Provisions and contingent liabiiites

A provision is recognised if as a result of a past event, the group has a present legal obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation, a. Contingent Liabilities are determined on the basis of available information and are disclosed byway of a note to the accounts.

1.8 Foreign Exchange Transactions:

For the purpose of Consolidation, Ajel Technologies, Inc was treated as Integral foreign operation in accordance with the Accounting Strandard ll-"Effects of Changes in Foreign Exchange Rates" and transactions in foreign currency for the items of income and expenses are recorded at the Average rate of exchange for the period . All the Assets and Liabilities were recorded at the Closing rate of exchange. Exchange differences arising there from is transferred to Foreign Currency Loss and transferred to Profit and Loss Account.

1.9 Earning per Share

Basic earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period. Diluted Earnings per share is computed by dividing the net profit aftertax by the weighted average number of equity shares considered for deriving the basic earnings per share and also the weighted average number of the equity shares that could have been issued upon conversion of all dilutive potential equity shares.

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Mar 31, 2013

1.1 Accounting Policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles and mandatory accounting standards issued by the Institute of Chartered Accountants of India.

1.2 Basis of Accounting

The financial statements are prepared in accordance with the relevant presentation requirements of the Revised Schedule VI of the Companies Act, 1956 under the Historical cost convention on the basis of going concern and accrual unless otherwise stated.

1.3 Revenue recognition

Revenue is primarily derived from Software development, Consulting and allied services. Arrangements for software development and related services are either on fixed-price and fixed-timeframe or on a time and material basis. Revenue from fixed-price and fixed-time frame contracts , where there is no uncertainly as to measurement or collectability of consideration is recognised based on percentage- completion method. Where there is uncertainity as to measurement or collectability revenue recognition is postponed until such uncertainity is resolved. Revenue from fixed-price maintenance contracts are recognised ratably overthe period in which services are rendered.

1.4 Fixed Assets

Fixed Assets are stated at cost less depreciation. The company capitalizes all costs incidental to acquisition and installation of Fixed Assets. Depreciation on fixed assets is provided on WDV method at the rates prescribed in Schedule XIV of the Companies Act, 1956.

1.5 Preliminary Expenses and Pre Operative Expenses

Preliminary Expenses and Pre Operative Expenses are to be amortized over a period often years from the date of commencement of commercial activities.

1.6 Tax on Income

Current tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets are not recognized on unabsorbed depreciation and carry forward of losses unless there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

1.7 Provisions and contingent liabilites

A provision is recognised if as a result of a past event, the group has a present legal obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation, a. Contingent Liabilities are determined on the basis of available information and are disclosed by way of a note to the accounts.

1.8 Foreign Exchange Transactions:

For the purpose of Consolidation, Ajel Technologies, Inc was treated as Integral foreign operation in accordance with the Accounting Strandard ll-"Effects of Changes in Foreign Exchange Rates" and transactions in foreign currency for the items of income and expenses are recorded at the Average rate of exchange for the period . All the Assets and Liabilities were recorded at the Closing rate of exchange. Exchange differences arising there from is transferred to Foreign Currency Loss and transferred to Profit and Loss Account.

1.9 Earning perShare

Basic earnings per share is computed by dividing the net profit aftertax by the weighted average number of equity shares outstanding during the period. Diluted Earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares considered for deriving the basic earnings per share and also the weighted average number of the equity shares that could have been issued upon conversion of all dilutive potential equity shares.

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Mar 31, 2012

1.1 Accounting Policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles and mandatory accounting standards issued by the Institute of Chartered Accountants of India.

1.2 Basis of Accounting

The financial statements are prepared in accordance with the relevant presentation requirements of the Revised Schedule VI of the Companies Act, 1956 under the Historical cost convention on the basis of going concern and accrual unless otherwise stated.

1.3 Revenue recognition

Revenue is primarily derived from Software development, Consulting and allied services. Arrangements for software development and related services are either on fixed-price and fixed-timeframe or on a time and material basis. Revenue from fixed-price and fixed-time frame contracts where there is no uncertainly as to measurement or collectability of consideration is recognised based on percentage- completion method. Where there is uncertainty as to measurement or collectability revenue recognition is postponed until such uncertainly is resolved. Revenue from fixed-price maintenance contracts are recognised ratably over the period in which services are rendered.

1.4 Fixed Assets

Fixed Assets are stated at cost less depreciation. The company capitalizes all costs incidental to acquisition and installation of Fixed Assets. Depreciation on fixed assets is provided on WDV method at the rates prescribed in Schedule XIV of the Companies Act, 1956.

1.5 Preliminary Expenses and Pre Operative Expenses

Preliminary Expenses and Pre Operative Expenses are to be amortized over a period of ten years from the date of commencement of commercial activities.

1.6 Tax on Income

Current tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets are not recognized on unabsorbed depreciation and carry forward of losses unless there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

1.7 Provisions and contingent liabilites

A provision is recognised if as a result of a past event, the group has a present legal obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation, a. Contingent Liabilities are determined on the basis of available information and are disclosed by way of a note to the accounts.

1.8 Foreign Exchange Transactions:

For the purpose of Consolidation, Ajel Technologies, Incwas treated as Integral foreign operation in accordance with the Accounting Strandard ll-"Effects of Changes in Foreign Exchange Rates" and transactions in foreign currency for the items of income and expenses are recorded at the Average rate of exchange for the period . All the Assets and Liabilities were recorded at the Closing rate of exchange. Exchange differences arising there from is transferred to Foreign Currency Loss and transferred to Profit and Loss Account.

1.9 Earning per Share

Basic earnings per share is computed by dividing the net profit After tax by the weighted average number of equity shares outstanding during the period. Diluted Earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares considered for deriving the basic earnings per share and also the weighted average number of the equity shares that could have been issued upon conversion of all dilutive potential equity shares.

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Mar 31, 2010

DESCRIPTION OF BUSINESS

Ajel Infotech Limited (Ajel), its consolidated subsidiary Ajel Technologies India Private Limited (Ajel Technologies) and its consolidated subsidiary of Ajel Technologies, Inc (Ajel, Inc) (hereinafter collectively referred to as Group) are mainly engaged in development of computer software. Ajel is a holding Company with its investment within the group companies.

PRINCIPLES OF CONSOLIDATION

The consolidated financial statements include accounts of:

a. Ajel Infotech Limited (Ajel), holding company of Ajel Technologies India Private Limited (Ajel Technologies) directly holding 99.99 % of voting power.

b. Ajel Technologies India Private Limited (Ajel Technologies) subsidiary of Ajel and holding company of Ajel Technologies, Inc (Ajel, USA) directly holding 100% of voting power.

c. Ajel Technologies, Inc (Ajel, USA), subsidiary company of Ajel Technologies.

The consolidated financial statements have been prepared in accordance with historical cost convention, with the Generally Accepted Accounting Policies (GAAP) applicable in India and the provisions of the Indian Companies Act, 1956.

All inter company transactions, balances and unrealized surpluses and deficits on the transactions, to the extent identifiable, between group companies are eliminated.

Investment in subsidiary has been accounted in these consolidated statements as per Accounting Standard 21 on Consolidated Financial Statements

3. Basis of Accounting:

These accounts have been prepared under historical cost convention and on the accounting principles of going concern. Accounting Policies not specifically referred to otherwise are consistent and in accordance with generally accepted accounting principles.

4. Income and Expenditure:

Income and Expenditure are accounted for on accrual basis wherever material, except bonus to staff and other retirement benefits, which are accounted on cash basis.

Dividend and Debenture interest income is accounted for on cash basis.

Profit and / or loss on share trading is accounted for on basis of Broker Notes where available.

Speculative income on Futures and Options at or before the expiry of a series of equity index futures / equity stock futures upon final settlement of the contracts in the series,the profit/loss is calculated of the difference between the final settlement price on that date and the contract prices of each contract in the series.

Fees for development of Web-based portals for customers are recognised as revenue by reference to the stage of completion of the development based on the man-hours spent to achieve that particular completion stage. The revenue from fees of web designing are recognised based on designing completed and billed to the clients as per the terms of specific contract. Revenue from services is recognized based on time and billed to the clients as per the terms of contract.

5. Fixed Assets and Depreciation:

Fixed Assets of Ajel and Ajel technologies are stated at their original cost of acquisition (including installation charges) as reduced by any sale/discard and accumulated depreciation thereon.

Depreciation on fixed assets of Ajel and Ajel technologies has been provided on straight-line basis as per rates prescribed under Schedule XIV of the Companies Act, 1956. In case of additions to fixed assets, depreciation is provided on a pro-rata basis from the date of acquisition on straight-line basis as per rates prescribed under Schedule XIV of the Companies Act, 1956.

6. Asset Impairment:

Impairment loss is recognized wherever the carrying amount of an asset is in excess of its recoverable amount and the same is recognized as an expense in the statement of profit and loss and the carrying amount of the asset is reduced to its recoverable amount. Recoverable amount is the higher of an assets net selling price and its value in use. Value in use is determined on the basis of the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life.

Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment losses recognized for the asset no longer exist or have decreased.

7. Investment:

Investments are valued at cost inclusive of all expenses incidental to their acquisition. All the investments are intended to be held for a period of more than one year from the date on which investment is made. Accordingly, all investments are long-term and are carried at cost. Overseas investments are carried at their original rupee cost. However, in consolidated accounts, the amount of investments in rupees in subsidiary is not considered.

8. Determination of Market Value of Investments:

Quoted scripts are taken at the year-end closing market rates prevailing on the Principal Stock Exchange where they are traded.

Unquoted Shares are taken at cost.

9.Taxation:

Provision of current tax is made on the basis of the estimated taxable income for the current accounting year in accordance with the Income-tax Act, 1961.

The deferred tax for timing differences between the book and tax profits for the year if applicable is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. Differed tax assets arising from timing differences are recognized to the extent there is virtual certainty that these would be realized in future and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

10. Contingent Liability:

Contingent Liabilities are determined on the basis of available information and are disclosed by way of a note to the accounts.

Contingent Liability not provided for: Rs. Nil (Previous year: Rs. Nil).

Estimated amount of contracts remaining to be executed on Capital Account and not provided for Rs. Nil (Previous year: Rs. Nil).

11. Foreign Exchange:

For the purpose of Consolidation, Ajel Technologies, Inc was treated as Non Integral foreign operation in accordance with the Accounting Standard 11-"Effects of Changes in Foreign Exchange Rates" and transactions in foreign currency for the items of income and expenses are recorded at the Average rate of exchange for the period . All the Assets and Liabilities were recorded at the Closing rate of exchange. Exchange differences arising there from is transferred to Foreign Currency Loss and transferred to Profit and Loss Account.