The Directors have pleasure in presenting the 21st Annual Report
 together with the Audited Statement of Accounts for the Year Ended 31st
 March 2003.
 
 FINANCIAL HIGHLIGHT
 
                                                        (RUPEES IN LACS)
                                       YEAR ENDED             YEAR ENDED
                                        31.3.2003              31.3.2002
 
 Gross Earnings                            0.03                   0.84
 Proflt/(Loss) before
 Tax & Depreciation                      (55.74)                (51.60)
 Depreciation                              2.04                   3.71
 Profit/(Loss) after Tax                 (57.75)                (54.47)
 
 OPERATION
 
 In keeping with our global efforts, the Company established close
 working relationships and strategic associations In Iraq, UAE, South
 Africa and Texas USA during the course of the fast Financial Year. Such
 painstaking efforts led to the formation of tactical alliances with
 companies such as Exxoteq Corporation (Overseas) LLC in UAE: Exxoteq
 LTD in RSA (Republic of South Africa): Exxoteq USA Inc. In USA and
 Exxoteq (UK) LTD in UK to pursue the goal of promoting the FPSO
 Technology developed by the Company as well as to seek overseas
 contracts that could culminate in projects initiation during the
 current Financial Year. In this regard, In order to maximize the
 benefit of strong overseas networking, the Company also decided to
 change the name from Zenergy LTD to Exxoteq Corporation LTD..  for
 which, the necessary ROC approval was duty obtained.
 
 DIRECTORS
 
 Smt Smeeta Sawney retires by rotation and offers herself for
 re-appointmnet.
 
 FINANCIAL INSTITUTIONS AND BANKS
 
 During the month of January 2002, the Reserve Bank of India issued
 Revised Guidelines for Compromise Settlement of Chronic Non Performing
 Assets (NPAs) of Public Sector Banks that had to be initiated by the
 Applicant Company on or before the end of April 2003.  Consequently,
 your Company duly applied under the stipulated scheme to the concerned
 Financial Institutions & Banks and we are pleased to report that the
 response from Financial Institutions have been most encouraging since
 they have invited the Company for discussing the submitted proposal for
 one time settlement
 
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 PARTICULARS OF EMPLOYEES
 
 None of the employee is drawing salary as per Section 217(2a) of the
 Companies Act, 1956, read with the Companies (Particulars of Employees)
 Rules. 1975
 
 DEPOSITORY SYSTEM
 
 Trading in Equity Shares of your Company is permitted only in
 dematerliased from with effect from 25th Septemeber 2000, in terms of a
 notification of Securities and Exchange Board of India (SEBI).As such
 the company has entered into Agreements with both the Depositories viz
 National Securities Depository Limited (NSDL) and Central Depository
 Services (India) Limited (CDSL) for custody and Dematerilalisation cf
 securities and with Computech Sharecap Limited to enable members to
 hold shares in dematerialised form. Your Company has also made
 arrangements for simultaneous dematerlalisation of share certificates
 lodged for transfer. Those shareholders who have not opted for this
 facility are advised to dematerialise their shares with either of the
 depositories, since dematerialisation facilitates quick transfer of
 shares and prevent forging of documents.
 
 RESPONSIBILITY STATEMENT
 
 Pursuant to Section 217 (2AA) of the Companies Act 1956, the Directors
 confirm:
 
 a) that the applicable accounting standards have been followed along
 with proper explanation wherever required in the preparation of Annual
 accounts:
 
 b) that the Company has adopted prudent accounting policies:
 
 c) that proper care has been taken (or maintenance of accounting
 records in accordance with the provisions of the Act: and d) that the
 Annual Accounts of the Company have been prepared on a going concern
 basis.
 
 CORPORATE GOVERNANCE
 
 Listing Agreements with Stock Exchanges prescribe uniform code of
 Corporate Governance for the Listed Companies. It will be mandatory for
 your Company to implement Corporate Governance during the Financial
 Year 2001-2002 i.e. before 31st March. 2002. Your Company already
 complies with majority of the requirements of the Code. Compliance of
 the Code to the full extent will be ensured before the prescribed date.
 
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 AUDIT COMMITTEE
 
 Your Company has consituted an Audit Committee comprising the present
 Directors as Members of the Committee.
 
 AUDITORS
 
 The Company's Auditors. M/s N B Shetty & Co.. Chartered Accountants,
 retire at the conclusion of the ensuing Annual General Meeting and
 being eligible offer themselves tor re-appointment.