XEDD TELECOM LIMITED
ANNUAL REPORT 2000-2001
The Members of
Xedd Telecom Limited
We have audited die attached balance sheet of Xedd Telecom Limited as at
31-03-2001 and the profit & loss account of the company for the year ended
oil that date annexed thereto and we report that:
A) As required by the manufacturing and the other companies (auditors
report) order, 1988 issued by the company law board in terms of section
227(4A) of the Companies Act, 1956, we enclose in the annexure a statement
on the matters specified in paragraph 4 & 5 of the said order.
B) Further to our comments in the annexure referred to in Para (A) above,
we also report that:
a) We have obtained all the information and explanations which to the best
of our knowledge and belief, are necessary for the purpose our audit.
b) In Our opinion, proper books of accounts as required by the law have
been kept by the company so far as it appears from our examination of such
c) The balance sheet and profit & Loss account dealt with by this report
are in agreement with the books of accounts of accounts of the company.
d) In our opinion, the balance sheet and Profit & Loss account comply with
the account standards referred to i sub section 3(C) of section 211 of the
companies act, 1956. And
e) In our opinion and to the best of our information and according to the
explanations given to us the said accounts together with the notes thereon
give the information required by the Companies Act, 1956 in the manner so
required and Subject to comments annexed thereto gives the true and fair
I) In the case of balance sheet, of the state of affairs of the company as
at 31, march 2001;
II) In the case of Profit & Loss account, the loss of the company for the
year ended on that date.
For: RAMESH ATHASNIYA & CO.,
Place : Hyderabad
Date : 06-08-2001
ANNEXURE TO THE AUDITOR'S REPORT
(Referred to in Paragraph (A) in the Report of even (late)
01. The company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets. The
management has certified that physical verification of fixed assets was
conducted at the end of the year.
02. The Fixed assets have not been revalued during the year.
03. As explained to us, physical verification has been conducted by the
management at the close of year in respect of trading goods,
04. In our opinion and according to tile information given to us, the
procedure of physical verification of stocks followed by the management
were found areasonable and adequate in relation to the size of the company
and the nature of the business.
05. The discrepancies noticed oil verification between tile physical stock
and book records were not material in relation to the operations of the
company and the same have been properly dealt, with in the books of
06. In my opinion that, valuation of stocks is fair and proper in
accordance with tile normally accepted accounting principles and is on the
same basis as in the preceding year.
07. The company has taken loans interest free loans from the parties under
the same management as defined under sub-section (I-B) of the section 370
of the Companies Act, 1956 and tile parties listed in the register
maintained Under section 301 of the' Companies Act, 1956. The terms and
conditions of the loan are not prima facie prejudicial to the interest of
08. The company has granted loans (Secured or Unsecured) to the parties
listed ill the register maintained under section 301 and to the companies
Under the same management as defined under section 370 (1-B) of the
Companies Act, 1956, the terms and conditions of such loans are not prima
facie prejudicial to the interest of the company.
09. The company has not given any loans or advances in die nature of loans
to any party during the year under review, except interest free loans to
10. In our opinion and according to the Information and explanations given
to us, the internal procedures are not adequate and commensurate with the
size of the company and the nature of its business, with regard to the
purchase of stocks including components, plants & machinery, equipment and
other assets and for sale of goods.
11. According to the information and explanations given to us there are no
transactions of purchase of goods from the parties listed in the register
maintained under section 301 of the Companies Act, 1956 and aggregating.
during tile year to Rs,50,0001 or more. Further there are no transactions
of sale of goods, materials and services.
12. As explained to us, no deposits from the public within the meeting of
section 58A of the Companies Act, 1956 and rules framed hereunder, have
been accepted by the company during the year.
13. The company, do not have any internal audit system.
14. According to information and explanations given to us the provisions of
provident fund and Employees state insurance are not applicable to the
15. As explained to us, there are undisputed amount payable in respect of
sales tax and excise duty which were outstanding as on 31st march, 2001 for
the period of more than 6 months from the date they become payable as was
explained in our Annual report of 1998-99.
16. According to information and explanations given to us and the records
of the company examined by us, no personal expenses have been charged to
revenue, other than those payable under contractual obligations or in
accordance with generally accepted business practice.
17. The company is not a sick industrial company within the meaning Clause
(0) of sub-section (1) of section 3 of the Sick Industrial Companies
(special provisions) Act, 1985.
18. The other matters contained in the said order of Paragraph (4A) are not
applicable to the company.
For RAMESH ATHASNIYA & CO.,
Place : Hyderabad
Date : 06-08-2001