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Xedd Telecom Ltd.

BSE: 530819 Sector: Others
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Xedd Telecom Ltd. (XEDDTELCOM) - Director Report

Company director report

XEDD TELECOM LIMITED ANNUAL REPORT 2000-2001 DIRECTORS' REPORT To The Members Your Directors present the 1Oth Annual Report of the Company together with the Audited Accounts for the year ended 31st March,2001. 1. DIVIDEND: Your Director do not recommend any dividend because of niloperations during the year under review. 2. REVIEW OF OPERATIONS DURING THE YEAR: Due to the continued impact of severe financial crisis and factors beyond the control of management the unit remained un operative during the year 2000-2001. 3. REVIEW OF FINANCIAL POSITION: Your Directors are inform that the suit filed earlier against Union Bank of India, Manicktolla Branch, Calcutta for Rs. 832.18 lacs with National Consumer Redressal Commission, New Delhi and fixed Deposits having a face value of Rs. 190.24 lacs is still in the investigation process. Since the Management is confident of recovering the amounts, no provision has been made in the books of accounts. The company also filed a suit eariler against M/s Jainco Projects India Limited for Rs. 38.28 lacs and also against M/s Park Controls & Communication System for Rs. 2.37 lacs for recovery of advances given to them during the years 1995-96 and 1993-96 respectively. As the company is confident of recovery of the advances, no provision has been made of accounts. The company approached Reserve Bank of India, Hyderabad for granting extention of time for one time settlement of FLCs dues with State Bank of Hyderabad. The Reserve Bank of India informed the company that the State Bank of Hyderabad, Head Office is considering the request made by the company for extention of time for one time settlement of dues under FLCS amounting to Rs. 40.24 lacs against which the company imported earlier fax machines. 4. DIRECTORS: Smt. Kavitha Jain will retire at the ensuing annual general meeting and being eligible, offers herself for reappointment. Sri. P.Narasimha Rao and Sri Jithender Kumar Bengam who ceases to be Directors in the ensuim, Annual General Meeting are to be re-appointed, 5. DEPOSITS: The Company has not accepted any deposits from the public during the year under review. 6. AUDITORS: The present Auditors of the Company M/s Ramesh Athasnlya & Co., Chartered i\ccount,ants, retire at the conclusion of this Annual General Meeting and they at- eligible for reappointment. 7. DIRECTORS' RESPONSIBILITY STATEMENT: As per the provisions of section 217(2AA) of the Companies Act, 1956, Directors state: i. In the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures. ii. The directors had 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 and of the profit and loss of the company for that period. iii. The Directors had 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 detecting fraud and other irregularities. iv. The Directors have prepared the accounts on a going concern basis. 8. AUDIT COMMITTEE: The board constituted Audit Committee in terms of Section 292A of the Companies Act, 1956 with the following members at their meeting held on 28th August, 2001. 1. Shri. Rajesh Kumar Naverider 2. Shri, P.Naraslinha Rao 3. Shri Jithender Kurriar Bengani 9. DISCLOSURE AS PER LISTING AGREEMENT: Clause 32 The cash flow statement in accordance with Accounting Standard on Cash Flow Statement (AS-3) ISSUed by ICAI is appended to this Annual Report.The Company's systems and software packages have been upgraded and are Y2K compliant. Clause 43A The Company shares are listed on The Hyderabad Stock Exchange Limited, 3-6- 275, Himayat Nagar, Hyderabad, The Stock Exchange, Mumbai, P. J. Towers, Dalal Street, Fort, Mumbai; The Stock Exchange Ahmedabad, Kamdhenu Complex, Opp. Sahajanand College, Panjarapole, Ahmedabad; The Kolkatta Stock Exchange Ltd, 7, Lyons range, Kolkatta; National Stock Exchange of India Limited, Trade world, Senapathi Bapat Marg, Plaza, Indira Gandhi Stadium, Indraprastha Estate, New Delhi. The shares of the company were under suspension for trading on all the Stock 'Exchanges where the shares are listed except on Delhi stock Exchange where the shares are regularly traded due to non compliances under the listing agreement. However, the company complied with the requirements under the listing agreement and approached the Regional Stock Exchange viz., The Hyderabad Stock Exchange with a request for revacation of suspension of trading of shares of the company and request is under active consideration of the regional stock exchange. It is further informed that the annual listing fees to National Stock Exchange of India Limited has been paid up to date and for the other Stock Exchanges payment will be made as and when called for. Corporate Governance Based upon the recommendations of Sri. Kumar Mangalarn Birla Committee oil Corporate Governance, the Stock Exchanges have amended the listing agreement, requiring the implementation in the case of your company within the financial year 200203 and have to be complied with before 31.03.2003 and the company will comply with the same in step-by- step as per listing agreement for greater transparency and for maximum long term shareholder value. 10. PARTICULARS OF EMPLOYEES: The particulars required under Section 217(12A) of the Companies Act, 1956 read with the provisions contained in Companies (Particulars of Employees) Rules, 1975 as amended to date were not applicable to Your Company as none of the employees was in receipt of remuneration which in aggregate was Rs. 12,00,000/- or more per year nor was in receipt of remuneration for any part of the year, of Rs. 1,00,000/- or more per month. 11. INDUSTRIAL RELATIONS: The company has had harmonious industrial relations throughout the year under review at all levels of organisation. The Company would endevour hard to maintain this cordial relationship in future also. 12. CONSERVATiON OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO: Information pursuant to Section 217(l)(e) of the Companies Act, 1956 read with the Companies (Disclosure of Particulars in the Report of die, Board of Directors) Rules, 1988 regarding conservation of energy, technology absorption was not given since there were no production operations and foreign exchange earnings and outgo were nil during the year under review. 13. ACKNOWLEDGEMENT: The Directors have pleasure in recording their appreciation for the valuable assistance extended to the Company by the State Bank of Hyderabad, IFB, Hyderabad and other Government authorities and business associates. Your directors also place on record their deep sense of appreciation for the dedicated services rendered by all the executives,staff and workers of the Company. For and on behalf of the Board Place : Secunderabad, Date : 28th Aug.,2001. Sd/- P.K. Jain Managing Director Sd/- Rajesh Kumar Navender Director