Twenty Fourth Annual Report 2009-10
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"bV ' 1][[c\WQObS PSVW\ROaW\UZS^c`^]aS BOYW\U]c`Q][^O\g aVO`SV]ZRS`a^O`b\S`a O\RS[^Z]gSSa TO`bVS`b]USbVS` Tata Communications Limited TWENTY FOURTH ANNUAL REPORT 2009-10 CONTENTS Corporate Details .............................................................................................................. 2 Notice .................................................................................................................................... 3 Directors’ Report ................................................................................................................ 7 Report on Corporate Governance .............................................................................. 26 Directors’ Responsibility Statement for the year 2009-10 and Secretarial Responsibility Statement ......................................................................... 38 Declaration by CEO regarding Company’s Code of Conduct and CEO/CFO Certification ..................................................................................................... 39 Auditors’ Certificate on Corporate Governance ..................................................... 40 Auditors’ Report ................................................................................................................. 41 Balance Sheet ..................................................................................................................... 44 Profit & Loss Account ....................................................................................................... 45 Cash Flow Statement ....................................................................................................... 46 Schedules ............................................................................................................................. 47 Notes to the Accounts ..................................................................................................... 57 Section 212 of the Companies Act, 1956, related to Subsidiary Companies 94 Consolidated Accounts Auditors’ Report on Consolidated Financial Statements .................................... 97 Consolidated Balance Sheet.......................................................................................... 98 Consolidated Profit & Loss Account ........................................................................... 99 Consolidated Cash Flow Statement ........................................................................... 100 Consolidated Schedules ................................................................................................. 101 Consolidated Notes to the Accounts ......................................................................... 109 Board of Directors ............................................................................................................. 143 Annual General Meeting on Friday, 6 August 2010, at MC Ghia Hall, Kalaghoda Mumbai at 11.00 a.m. As a measure of economy, copies of the Annual Report will not be distributed at the Annual General Meeting. Shareholders are requested to kindly bring their copies to the meeting. 1 COMMUNICATIONS Twenty Fourth Annual Report 2009-2010 Tata Communications Limited CORPORATE DETAILS BOARD OF DIRECTORS (As on 30 June 2010) Mr. Subodh Bhargava (Chairman) (Independent) Mr. N. Srinath (Managing Director and Chief Executive Officer) Mr. Kishor A. Chaukar (Panatone Nominee) Mr. P. V. Kalyanasundaram (Independent) Dr. V.R.S. Sampath (Independent) Mr. Amal Ganguli (Independent) Mr. Vinod Kumar (Panatone Nominee) Mr. S. Ramadorai (Panatone Nominee) Mr. A. K. Srivastava (Government Nominee) Mr. Arun Gandhi (Panatone Nominee) Dr. Ashok Jhunjhunwala (Panatone Nominee) Mr. Manish Sinha (Government Nominee) Mr. Satish Ranade Company Secretary & Chief Legal Officer Mr. Sanjay Baweja Chief Financial Officer REGISTERED OFFICE VSB, Mahatma Gandhi Road, Fort, Mumbai – 400 001. CORPORATE OFFICE C21& C36, ‘G’ Block, Bandra Kurla Complex, Mumbai – 400 098. BANKERS Bank of America HDFC Bank Ltd. Hongkong & Shanghai Banking Corporation Citibank Inc. Indian Overseas Bank Royal Bank of Scotland Development Bank of Singapore Deustche Bank Kotak Mahindra Bank Ltd. ICICI Bank Ltd. State Bank of India Vijaya Bank LEGAL ADVISORS Messrs ANS Law Associates Messrs Mulla & Mulla and Craigie Blunt & Caroe STATUTORY AUDITORS Messrs S.B. Billimoria & Co., Chartered Accountants REGISTRARS & Messrs Sharepro Services (India) Pvt. Ltd. TRANSFER AGENTS 13 AB, Samhita Warehousing Complex, 2nd Floor, Near Sakinaka Telephone Exchange, Andheri Kurla Road Andheri (East), Mumbai - 400 072. 2 NOTICE NOTICE is hereby given that the Twenty Fourth Annual General Meeting of Tata Communications Limited will be held at 1100 hours on Friday, 6 August 2010, at MC Ghia Hall, Bhogilal Hargovindas Building, Second Floor, 18/20 Kaikhushru Dubash Road, Kalaghoda, Mumbai – 400001 to transact the following business: Ordinary Business 1. To receive, consider and adopt the Balance Sheet of the Company as on 31 March 2010, the audited Profit and Loss Account for the year ended on that date, the Auditors’ Report thereon and the Report of the Board of Directors. 2. To appoint a Director in place of Mr. PV Kalyanasundaram who retires by rotation at this Annual General Meeting and being eligible offers himself for reappointment. 3. To appoint a Director in place of Dr. VRS Sampath who retires by rotation at this Annual General Meeting and being eligible offers himself for reappointment. 4. To appoint a Director in place of Mr. Amal Ganguli who retires by rotation at this Annual General Meeting and being eligible offers himself for reappointment. Special Business 5. To consider and, if thought fit, to pass with or without modification the following Resolution as a Special Resolution: “RESOLVED THAT pursuant to Section 224 A and other applicable provisions, if any, of the Companies Act, 1956, M/s. S.B. Billimoria & Co., Chartered Accountants be and are hereby appointed Statutory Auditors of the Company to hold office from the conclusion of this Annual General Meeting until the conclusion of the next Annual General Meeting and to examine and audit the accounts of the Company for the financial year 2010-2011 on such remuneration as may be mutually agreed upon between the Board of Directors and the Auditors, plus reimbursement of service tax, travelling and out of pocket expenses.” “RESOLVED FURTHER THAT the Auditors of the Company be and are hereby authorized to carry out (either themselves or through qualified associates) the audit of the Company’s accounts maintained at all its branches and establishments (whether now existing or acquired during the financial year ending 31 March 2011) wherever in India or abroad.” By Order of the Board of Directors Satish Ranade Company Secretary Dated : 5 July, 2010 Registered Office : VSB, Fort, M.G. Road, Mumbai - 400 001. NOTES : 1. A MEMBER ENTITLED TO ATTEND AND VOTE IS ENTITLED TO APPOINT A PROXY TO ATTEND AND VOTE INSTEAD OF HIMSELF AND THE PROXY NEED NOT BE A MEMBER. THE INSTRUMENT APPOINTING A PROXY SHOULD, HOWEVER, BE DEPOSITED AT THE REGISTERED OFFICE OF THE COMPANY NOT LESS THAN 48 HOURS BEFORE THE COMMENCEMENT OF THE MEETING. 2. Members who hold shares in dematerialized form are requested to bring their DP ID and Client ID numbers for easy identification of attendance at the meeting. 3. The statement of material facts pursuant to Section 173 (2) of the Companies Act, 1956, setting out the material facts in respect of the business under Item No. 5 is annexed hereto. 4. Details regarding the persons proposed to be appointed as Directors and their brief resume have been given in the annexure attached to the Notice. 3 COMMUNICATIONS Twenty Fourth Annual Report 2009-2010 Tata Communications Limited 5. Registers of members and transfer books of the Company shall remain closed from 2 August 2010 to 6 August 2010 (both days inclusive). 6. Pursuant to the provisions of Section 205A(5) of the Companies Act, 1956, dividends which remain unclaimed in the unpaid dividend account for a period of seven years from the date of transfer of the same, will be transferred to the Investor Education and Protection Fund established by the Central Government. The Members and Shareholders who have not encashed their dividend warrant(s) so far for the financial year ended 31 March 2003 or any subsequent financial years are requested to make their claim to the R & T Agents of the Company. According to the provisions of the Act, no claims shall lie against the said Fund or the Company for the amounts of dividend so transferred nor shall any payment be made in respect of such claims. The summary of the unpaid dividend for the past years and the date on which the outstanding amount shall be transferred to Investor Education and Protection Fund on the dates are given in the table below. Date of AGM Balance as on Dividend for the year Transfer to Investor 30 June 2010(Rs.) Education & Protection Fund 2 Sept 2003 797,253.50 2002-03 2 Oct 2010 2 Sept 2004 799,137.00 2003-04 2 Oct 2011 14 Sept 2005 1,045,488.00 2004-05 14 Oct 2012 13 Sept 2006 877,041.00 2005-06 13 Oct 2013 2 Aug 2007 736,294.00 2006-07 2 Sept 2014 2 Aug 2008 841,491.00 2007-08 2 Sept 2015 7 Aug 2009 860,791.50 2008-09 7 Sept 2016 Total 5,957,424.00 7. Consequent upon the introduction of Section 109A of the Companies Act, 1956, shareholders are entitled to make nomination in respect of shares held by them in physical form. Shareholders desirous of making nominations are requested to send their requests in Form No.