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Ajel Ltd.

BSE: 530713 Sector: IT
NSE: N.A. ISIN Code: INE229B01015
BSE LIVE 11:09 | 05 Dec 4.81 0.22
(4.79%)
OPEN

4.81

HIGH

4.81

LOW

4.81

NSE LIVE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 4.81
PREVIOUS CLOSE 4.59
VOLUME 5
52-Week high 5.42
52-Week low 1.90
P/E
Mkt Cap.(Rs cr) 5.60
Buy Price 0.00
Buy Qty 0.00
Sell Price 4.81
Sell Qty 571.00
OPEN 4.81
CLOSE 4.59
VOLUME 5
52-Week high 5.42
52-Week low 1.90
P/E
Mkt Cap.(Rs cr) 5.60
Buy Price 0.00
Buy Qty 0.00
Sell Price 4.81
Sell Qty 571.00

Ajel Ltd. (AJEL) - Director Report

Company director report

AJEL LIMITED ANNUAL REPORT 2011-2012 DIRECTOR'S REPORT To The Members, Your Directors have pleasure in presenting the Eighteenth Annual Report of the company on the Business and Operations ofthe 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 Prof it 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 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 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 separetely 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 Inc, 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 ofthe 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) OF THE COMPANIES ACT. 1956 READ WITH (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 ( 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/- STATEMENT PURSUANT TO LISTING 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 MANAGEMENT DISCUSSION AND ANALYSIS REPORT 1. INDUSTRY OVERVIEW: The world wide spending towards information technology (IT) related products and services has crossed USD 1.7 trillion in 2011, a growth of 5.4% over 2010. Software, IT and BPO services, which were 63% of the total spending, grew at 4% over 2010. Global IT services spending have increased from USD 586 billion in 2010 to USD 605 billion in 2011. BPO services spending have increased from USD 147 billion in 2010to USD 153 billion in 2011. The geographic revenue break-up for IT and BPO services in 2011 was 46.5% (43.0% in 2010) for North America, 34.1% in 2011 (39.7% in 2010) for Europe, Middle East and Africa and 19.4% in 2011 (17.3% in 2010) for Asia Pacifi c. Looking forward, the global IT services spending is expected to grow at a CAGR of 4.5% over 2011-2012 while the global BPO services spending is expected to grow at CAGR of 5.3% during the same period. During 2011, global IT offshoring accounted for 61% of the total global sourcing market while BPO offshoring accounted for 39%. Trends in global sourcing continued to remain positive, showing higher growth than the global spending. In 2011 global sourcing grew by 12% over 2010 (2010 growth over 2009 was 10.4%). The IT outsourcing market is expected to show a 3-year CAGR of 8% over 2011-2012, while BPO offshoring is expected to grow at CAGR of 7% over the same period. The large size of the addressable global market and its steady expansion when viewed with the relatively low current level of penetration suggests significant headroom for future growth. The Company has positioned itself well for this anticipated growth in business with an appropriate structure, strategy and capabilities. 2. BUSINESS 2.1 OVERVIEW Ajel Limited is a global software services company providing consulting, Systems Integration, and outsourcing solutions to clients in key industry verticals worldwide. We integrate expert industry knowledge, process and technology frameworks, strong partnerships, and a global work force to provide strategic solutions that generate sustainable results The Company's full services portfolio consists of Consulting, Enterprise Solutions, Application Development and Management, Internet and Emerging Technologies, Information Management, Outsourcing Services and Mobility Solutions. 2.2 STRATEGY: The Company's strategy to support longer term growth is to continually extend the core IT services business by expanding its geographic reach, industry coverage and service capabilities and by deepening existing client relationships, building or acquiring emerging businesses and adopting or creating new business models and business solutions strategic partner capable of reliably delivering innovative solutions. 2.3. TECHNOLOGY: Ajel Limited continues to invest in futuristic areas related to healthcare and life sciences, materials science, computer science and electrical / electronic engineering. The Company's R&D continued to make a difference to its customers and society. While its improving quality and efficiency of current offerings, the Company's customer focused technology initiatives have helped its customers prepare for future challenges. Several of the R&D outcomes have now moved into the mainstream business in the form of assets, solutions, frameworks, tools and products. 3. OUTLOOK, RISKS AND CONCERNS. 3.1 OUTLOOK There are many challenges faced nearly every industry in today's global marketplace. Ajel has the depth and breadth of experience and expertise that you need to achieve your business goals and succeed amidst the fiercest competition. The uncertainities in the global market, business model redundancy, supply side risks and financial risks are the major threats faced by IT industry. The Company believes in building and maintaining deep customer and become a trusted business partner to global enterprises. The Company's views industry segmentation, customer-centric organisation as an important enabler to achieve such mission. By building business units around groups of key clients in each industry vertical and giving end-to-end sales and delivery responsibility to the business head, the Company can ensure high levels of accountability, superior customer service and intimacy. In order to strengthen future sustainability of the business model, the Company also believes in pursuing non-linear growth opportunities, which would bring in revenue growth without commensurate growth in headcount. Non-linearity in the current IT and IT enabled services businesses comes from productivity-enhancing tools, frameworks, solution accelerators and managed services engagements. The Company's believes in continued investments in technology, process maturity and deep domain expertise so as to result in superior outcome for clients and be recognised by the industry as benchmark in delivery excellence. The Company aims to strengthen Company's newer service offerings such as application development and maintenance, enterprise solutions, IT infrastructure services, engineering and industrial services and asset leveraged solutions. The Company believes to continuously engage in customer focused innovation and launch new offerings that use technology to address its clients' business problems. 3.2 RISKS AND CONCERNS: The Company has been initiating various risk management programmes to combat strategic, operational and financial as well as compliance-related risks across various levels of the organisation. It includes risk assessment and mitigation at the company level, business/functional unit level, relationship level and project level. The risk management process is continuously improved and adapted to the changing global risk scenario. The agility of the risk management process is monitored and reviewed for appropriateness with the changing risk landscape. The process of continuous evaluation of risks includes taking stock of the risk landscape on an event driven as well as quarterly basis. 4. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY The Company has in place adequate systems of internal control commensurate with its size and the nature of its operations. These have been designed to provide reasonable assurance with regard to recording and providing reliable financial and operational information, complying with applicable statutes, safeguarding assets from unauthorised use or losses, executing transactions with proper authorisation and ensuring compliance of corporate policies. The Company has a well defined delegation of power with authority limits for approving revenue as well as expenditure. Processes for formulating and reviewing annual and long term business plans have been laid down. It has continued its efforts to align all its processes and controls with best practices. The Company has an audit committee, the details of which have been provided in the corporate governance report. The audit committee reviews audit reports submitted by the internal auditors. Suggestions for improvement are considered and the audit committee follows up on the implementation of corrective actions. The committee also meets the Company's statutory auditors to ascertain, inter alia, their views on the adequacy of internal control systems in the Company and keeps the board of directors informed of its major observations from time to time. The internal audit process is designed to review the adequacy of internal control checks in the system and covers all significant areas of the Company's operations such as software delivery, accounting and finance, procurement, employee engagement, travel, insurance, IT processes in the Company. Safeguarding of assets and their protection against unauthorised use are also a part of these exercises. Thus, the planning and conduct of internal audit is oriented towards the review of controls in the management of risks and opportunities in the Company's activities. 5. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE-STANDALONE. Revenues: the turnover of the company for 2011-2012 of Rs. 642.43 Lacs has grown by 57.84% over the year, compared to Rs. 407.01 Lacs of the Previous Year. Expenditure: The Expenditure for 2011-2012 has grown to Rs. 635.08 Lacs compared to Rs.306.33 Lacs in 2010-11. The growth in expenses is to commensurate the growth in turnover. The Company has incurred huge expenditure incurred on account of Employee Benefits and Administration Expenses. Finance Costs: During the year under review, the finance costs have reduced to Rs. 108.58 from Rs. 144.75 of previous year. Personnel Costs: Personnel Costs increased to Rs. 521.87 Lacs as against Rs. 208.85 Lacs of previous year largely due to addition in strength of employees. Profit After Tax 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 Expense. Fixed Assets The Gross Fixed Assets as on 31st March 2012 was Rs. 219.19 Lacs as against Rs. 193.51 Lacs of Previous year, amounting to an incremental Asset Acquisition of 25.67 Lacs. DISCUSSION ON FINANCIAL PERFORMANCE - CONSOLIDATED The Consolidated Turnover of the Company has deceased to Rs. 4050.09 Lacs for 2011-12 as against Rs. 7051.12 Lacs of Previous year. Profit after Tax The Consolidated Profit After Tax for 2011-12 has decreased by Rs. 117.04 over the year compared to Rs. 276.73 of 2010-11 6. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES. The Company's innovative human resources management strategies supported its business growth in a challenging environment. The Company's HRD policy focuses on creating an environment where performance is rewarded, individuals are respected and associates get opportunities to realise their potential. ' The company's Corporate HRD policy emphasizes on continuous, increased quality and commitment of its employees in order to succeed in the achievement of the corporate goals. The company provides employee development opportunities by conducting training programs to equip the employee with upgraded skills enabling them to adapt to the contemporary technological advancements. The HRD Team strive for the enhancement of Human Resources Organization , systems, processes and procedures, using the principles of continuous quality improvement that incorporate quality service and excellent performance standards, increased accountability and maximizes cost- effectiveness. CAUTIONARY STATEMENT Certain statements made in the management discussion and analysis report relating to the Company's objectives, projections, outlook, expectations, estimates and others may constitute 'forward looking statements' within the meaning of applicable laws and regulations. Actual results may differ from such expectations, projections and so on whether express or implied. Several factors could make significant difference to the Company's operations. These include climatic conditions and economic conditions affecting demand and supply, government regulations and taxation, natural calamities and so on over which the Company does not have any direct control. By order of the Board of Directors Place: Mumbai Sd/- Date : 03.08.2012 Srinivasa Reddy Arikatla Vice Chairman & Managing Director

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