ESSAR TELEHOLDINGS LIMITED
ANNUAL REPORT 2010-2011
Your Directors are pleased to present the 29th Annual Report and Audited
Accounts for the period ended March 31st, 2011.
1. Financial Results
(Amount in )
Particulars For the period ended For the period ended
March 31, 2011 March 31, 2010
Income 8,72,12,490 15,09,18,750
Less: Expenditure 10,58,76,545 15,30,98,707
Profit / (Loss) for the period
before tax (1,86,34,055) (21,79,957)
Provision for tax (including
adjustments for earlier years) (93,160) (2,38,371)
Profit / (Loss) for the
period after tax (1,87,27,215) (24,18,328)
Balance brought forward from
previous period (15,27,24,048) (15,03,05,720)
Balance carried to Balance
Sheet (17,14,51,263) (15,27,24,048)
Your Directors do not recommend any dividend for the year.
Mr. Amit Gupta retires by rotation at the ensuing Annual General Meeting
and being eligible offers himself for re-appointment. Mr. Shishir Agrawat
and Mr. N.B. Vyas continue to be Directors of the Company.
3. Directors Responsibility Statement
Pursuant to requirements under section 217(2AA) of the Companies Act, 1956
with respect to Directors Responsibility Statement, it is hereby
(i) that the preparation of annual accounts for the financial period ended
on March 31st, 2011 the applicable accounting standards had been followed
along with proper explanation relating to material departures;
(ii) that the Directors had 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 period and of the loss of the Company
for period under review;
(iii) that the Directors had 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;
(iv) that the Directors had prepared the accounts for the financial period
ended on March 31st, 2011 on a going concern basis.
M/s. Nisar a Kumar, Chartered Accountants, hold office until the conclusion
of forthcoming Annual General Meeting and being eligible, offers themselves
for reappointment. The Company has received an intimation to the effect
that their reappointment, if done, will be within the limits laid down
under section 224 (1B) of the Companies Act, 1956.
There are no audit qualifications or adverse remarks contained in the
auditor's report to the members on the accounts of the Company for the
period ended March 31, 2011.
5. Particulars of Employees
The disclosure as required under section 217(2A) of the Companies Act, 1956
read with Companies (Particulars of Employees) Rules, 1975 as amended, is
not required as there are no employees covered by it.
6. Particulars Regarding Conservation of Energy. Technology Absorption and
Foreign Exchange Earning and Outgo Considering the nature of activities of
your Company, the information required under section 217(1)(e) of the
Companies Act, 1956 read with Companies (Disclosure of Particulars in the
report of Board of Directors) Rules, 1988 relating to Energy Conservation,
Technology Absorption may be treated as NIL since your Company is not a
manufacturing Company. The Company had no Foreign Exchange Earning or Outgo
during the period under review.
7. Subsidiary Companies
As on March 31st, 2011, Essar Telecom Holdings Overseas Pvt. Ltd. and Essar
Telecommunications Holdings Pvt. Ltd. ('ETHPL') were subsidiaries of your
Company. ETHL Communications Holdings Ltd., subsidiary of ETHPL was also
subsidiary of your Company pursuant to section 4(1)(c) of the Companies
Act, 1956. During the current financial year ETHPL amalgamated India
Securities Ltd. ('ISL') vide order dated April 21, 2011 passed by Hon'ble
Madras High Court and pursuant to Scheme of Amalgamation, ISL has allotted
50,85,30,000 equity shares and became subsidiary of your Company. It may
also be noted that ISL has been ceased to be subsidiary of the Company
consequent to sale of shares during the current financial year.
A statement under section 212 of the Companies Act, 1956 in respect of the
above subsidiary and copies of the audited accounts and all other documents
referred under the said section for the financial year ended on March 31st,
2011 are attached herewith.
8. Holding Company
Your Company continues to be wholly owned subsidiary of Kroner Investments
Limited, which in turn is wholly owned subsidiary of Girishan Investment
Limited, the ultimate holding Company.
9. Fixed Deposits
The Company has neither invited nor accepted any deposits from the public
during the year. There are no unclaimed deposit(s) lying with the Company.
Your Directors wish to place on record their appreciation for the various
departments of Central and State Governments for their continued
cooperation and support.
For and on behalf of the Board of Directors
Date: September 1, 2011 Director Director