XEDD TELECOM LIMITED
ANNUAL REPORT 2000-2001
Your Directors present the 1Oth Annual Report of the Company together with
the Audited Accounts for the year ended 31st March,2001.
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
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
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
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,
The Company has not accepted any deposits from the public during the year
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,
i. In the preparation of the annual accounts, the applicable accounting
standards had been followed along with proper explanation relating to
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:
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
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.
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
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.
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
For and on behalf of the Board
Place : Secunderabad,
Date : 28th Aug.,2001. Sd/-
Rajesh Kumar Navender