ITI Directors Report, ITI Reports by Directors


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Directors Report Year End : Mar '15    Mar 14
To The Members of ITI Limited
 The Directors have pleasure in presenting the 65th Annual Report of
 the Company together with Audited Accounts thereon for the year ended
 31st March 2015.
 The Company has achieved Sales and Production of Rs. 619.81Crore and
 Rs. 617.81 Crore respectively during the year 2014-15 against Rs.769.90
 Crore and 767.91 Crore respectively during the previous year 2013-14.
 The Company could achieve this turnover in spite of the fact that our
 major customers BSNL and MTNL have not placed any major orders like
 earlier years. The net loss of the Company for the year 2014-15 is Rs.
 297.12 Crore against the fgure of Rs.344.26 Crore for the year 2013-14.
 The net loss for the year 2014-15 is the lowest ever loss in the last
 13 financial years (if the financial assistance by way of grant from the
 Government is not taken into account).
 The contribution (net of material cost) for the year is Rs 172.25
 crore, which is comparable for that of previous year at Rs. 184.99
 The CCEA approval with a financial package of Rs.  4156.79 Crores for
 the revival of ITI was accorded on 12th February 2014. This consists of
 Rs. 2264 Crores towards capex for implementation of various projects in
 18 technology domains in all the plants of ITI and Rs. 1892.79 Crores
 as grant-in-aid to meet part of ITI''s liabilities.
 Against the capex grant of Rs. 2264 Crores, Government has released Rs.
 192 Crores to ITI in February 2015. Sixteen projects have been
 identifed for the investment of this amount. Advance action for
 implementation of these projects has been initiated in the plants as
 early as mid 2014, after the approval of the projects by ITI Board
 followed by DoT and the Apex Committee. Immediately on transfer of
 capex by the Government in February 2015, ITI plants have taken action
 to place purchase orders for the equipments required as part of
 infrastructure up- gradation for the implementation of the projects.
 Multi-pronged approach has been adopted, involving Corporate
 Management, Unit Management, Trade Unions etc., for successful
 implementation of the projects. Projects teams have been formed in all
 the units for project management and also monitoring of implementation
 of the projects. Regular monitoring of the implementation is also done
 at ITI Corporate.  Periodic review meetings have been held by DoT at
 the level of Member (Services) and further review meetings by the Apex
 The Government of India Budget BE 2015-16 includes an additional
 allocation of Rs. 50 Crores for ITI under plan head. Projects for
 utilization of this amount have been already identified. This money
 would be required during the third or fourth quarter of 2015-16.
 Against the CCEA approval of Rs. 1892.79 Crores to ITI as grant-in-aid
 under the revival plan, Rs. 165 Crores was released in November 2014
 towards payment of 1997 wage arrears. The 39 month wage arrears
 corresponding to the period from January 1997 to March 2000 have been
 paid to almost all the employees including retirees and only a few
 cases having some dispute or unclaimed cases are pending.
 The turnover for the year 2014-15 is mainly constituted from National
 Population Register (NPR), NGN, AMC for GSM-SZ, GSM-WZ, OCB, MLLN &
 ASCON, Defence and IT Solutions.
 The company is executing turnkey project of Registrar General of India
 (RGI) for creation of Multi Purpose National Identification card under
 National Population Register Project for the country.
 The Company has received the Purchase Order for NFS Project from BSNL
 for Rs.2984 Crore which involves procurement, Supply trenching, laying,
 Installation, testing and maintenance of Optical Fiber Cable, PLB Duct
 and accessories for construction of exclusive Optical NLD backbone and
 Optical access routes on turnkey basis in the Eastern and North-
 eastern region of the country.
                                             (Rs,in Crore) 
                                 2014-15        2013-14
                              (including     (including 
 Sl.   Product/Project              ED &           ED &
 No.                             Service        Service
                                     Tax)          Tax)
 1     C-DOT Products               0.34           0.16
 2     Diversifed Products/        68.40          16.63 
 3     Solar Panel                  0.15          18.85
 4     PCM MUX                      1.73           1.33
 5     MLLN                        38.42         105.45
 6     GSM - WZ (Incl. BTS,        19.72          84.04 
       RTT, Shelter & AMC )
 7     GSM - MTNL                   5.43              0
 8     GSM - SZ                    48.30           0.96
 9     Misc. Services              29.03          26.12
 10    Defence / ASCON             81.72          69.02
 11    OCB AMC Business            36.86          37.82
 12    SIM / USIM / SMART           0.89           0.35 
 13    NPR/SECC Projects           51.10          234.25 
 14    SMPS                         5.75            1.27
 15    G-PoN                       14.83            8.77
 16    ROs / CCO / IT             158.09          150.27
 17    Data Centre                 11.56           14.61
 18    NGN                         47.49            0.00
       TOTAL (Incl. ED & 
       Ser. Tax)                  619.81          769.90
 Projects executed during the year 2014-15:
 - Next Generation Network (NGN)
 ITI Bangalore plant successfully executed the purchase order worth
 Rs.47.20 Cr. for NGN products received from BSNL. Further, Advance
 Purchase Order (APO) from BSNL to the tune of Rs 120 Cr is available
 for execution of this project during 2015-16.
 - National Population Registration (NPR) and Socio Economic & Caste
 Census (SECC) projects ITI is one among the consortium of three PSUs
 (other two PSUs being M/s BEL & M/s ECIL) for the execution of
 prestigious National Population Register (NPR) Project under Ministry
 of Home Affairs (MHA). The job involves collection of citizen data
 including biometrics which is under execution. The above consortium is
 also executing SECC project for the Ministry of Rural Development
 - GSM
 ITI has implemented GSM Projects in BSNL West Zone and MTNL-Mumbai in
 technology alliance with M/s Alcatel-Lucent & in South Zone in
 technology alliance with M/s Huawei. The Annual Maintenance Contract
 related works have been carried out in these zones.
 - Defense projects
 ITI is the leader in supplying encryption equipments for the secured
 communication in the Defense networks. In the year 2014-15, ITI had
 executed orders from Defense sector for IP encryptions, NGN (BU), 5C
 telephone instruments etc.
 - Fiber Cable Laying for Network for Spectrum (NFS)
 In the tender foated by BSNL for laying optical fiber cables under NFS
 project, ITI was L1 for 2 zones (out of seven) and has received
 Purchase Orders from BSNL worth Rs 2111 Crore (excluding AMC) for
 laying of optical fiber cable in the east and north eastern part of the
 country. The project is currently under execution with support from
 technology partners.
 - Switch Mode Power Supply (SMPS)
 ITI Raebareli plant is manufacturing SMPS systems and executing the
 orders from BSNL / MTNL.
 - Data center & IT Projects
 ITI has already established Tier 3  state-of- art Data center at
 Bangalore on PPP model.  Presently this Data Center is fully booked for
 co- location services. ITI is also playing a major role in implementing
 IT projects. The Government is pursuing E-Governance projects for
 taking the benefit of IT to the Village Panchayats and a substantial
 budget provision has been made by the Government for the same. ITI is
 aggressively pursuing this market segment. ITI has executed SWAN (State
 Wide Area Network) projects of Maharashtra, Odisha and Mizoram. ITI is
 also executing Accelerated Power Development and Reform Programme
 (APDRP) of Tamil Nadu state.
 - Maintenance Contracts
 ITI had earlier established the ASCON network for Indian Army. ITI was
 also the major supplier of fixed line switches to BSNL and MTNL.
 Currently ITI has been extending maintenance assistance to Indian Army
 for ASCON and to BSNL and MTNL for OCB exchanges, MLLN and STP Networks
 under Annual Maintenance Contracts.
 The performance of the Company for the year 2014- 2015 as compared to
 the previous year is as follows:
                                          (Rs,in Crore)
 SI.  Particulars             2014-2015      2013-2014 
 i.   Sales including               620            770
 ii.  Value of                      618            768
 iii. Loss before tax               297            344
 iv.  Loss after tax                297            344
 v.   Financing                     157            122
 vi.  Depreciation                   15             17
 vii. Capital Employed             1112            952
     (Net Fixed Assts   Net
      Current Assets)
 viii.  R&D Expenditure              13             17
 The shareholders at the Extra Ordinary General Meeting held on 9th
 January 2015 has approved the increase in authorized share capital from
 Rs.  700 crores to Rs. 1200 crores in total. Accordingly, the Equity
 share capital has been increased from Rs. 300,00,00,000 (Rupees Three
 Hundred crores) divided into 30,00,00,000 (Thirty Crores) equity shares
 of Rs. 10 each to Rs.800,00,00,000 (Rupees Eight Hundred crores)
 divided into 80,00,00,000 (Eighty Crores) equity shares of Rs.10 each.
 The existing Preference Share Capital of 4,00,00,000 Redeemable
 Cumulative preference shares of Rs.100/- each remains the same.
 The paid up Equity Share Capital as on 31st March 2015 was
 During the year under review, the Company has received Rs.192 crores
 from Ministry of Communications and IT for meeting the expenditure
 towards CAPEX implementation of various projects in its various plants,
 during February 2015. The Process of allotment of shares to Government
 of India and ensuring minimum public shareholding, is being done as per
 directions of Ministry of Communications and IT.
 During the year under review, the Company has not issued shares or
 granted stock options or sweat equity.
 As on 31st March 2015, none of the Directors of the Company hold any
 shares of the Company.
 As your Company has incurred a loss, the Directors are not in a
 position to recommend any dividend for the year 2014-2015.
 Bangalore plant achieved a turnover of Rs. 157.04 Crores (with ED) &
 the Net turnover of Rs. 145.02 Crores.
 The Supply consisted of Defence equipment worth Rs. 19.32 Crores,
 Telesets, Magneto & Naval telephone equipment worth of Rs. 1.64 Crores,
 Primary Mux, Data cards worth Rs. 3.13 Crores, Service & Def.  AMC
 worth Rs.  10.52 Crores, Contract manufacturing worth Rs. 1.04 Crores
 and Data Centre turnover worth of Rs.13.9 Crores. NGN supplies worth
 Rs.  47.66 Crores, GSM AMC (South Zone) worth Rs. 42.71 Crores, CDMA
 WLL AMC worth Rs. 7.2 Crores, IFWT equipments worth Rs.  1.63 Crores,
 GSM South Zone Projects worth Rs.  5.66 Crores, Tablet PC supplies
 worth of Rs.  1.06 Crores and ISAT Phone (CRPF) usage charges of Rs.
 1.57 Crores.
 During the year, the plants also addressed tenders for MIL PCM 1000
 nos. AWAN II project E3CR, 5C telephones and other Secrecy equipments
 like STM1 and 2Mb/s. The total value of the tenders is approximately
 Rs.350 Crores.
 During the year, the plant signed a MoU with M/s HAL to work together
 for manufacturing of contract products and services.
 Reliability Labs have been opened up for external agencies to utilize
 the facilities, thus making it an independent revenue generating
 Energy Consumption for the year is 21,92,638 Units compared to
 25,12,700 Units during the same period last year, a saving of 12.74%.
 The turnover of the plant is 3 times more that of last year and the
 Operating Profit is Rs.3 Crores.
 Prestigious NFS project for package F in six states for construction of
 exclusive optical NLD backbone and optical access route on turnkey
 basis for Defense network has been allocated to ITI Mankapur. It is
 worth approx. Rs. 1150 Crs. including AMC. The project is currently
 under execution
 Mankapur Plant achieved a turnover of Rs. 1.84 Crs. (including ED)
 during 2014-15. Under NPR- 40 project in Bihar and Chhattisgarh,
 Biometric Enrolment worth Rs. 0.046 Cr. has been done. The plant
 supplied C-DOT equipments worth Rs. 0.40 Cr., Bank Mechanization
 products of approx. Rs. 1.17 Cr, LED based products worth Rs. 0.029 Cr.
 and BTS worth Rs. 0.19 Cr.
 ITI Mankapur undertakes repair of the cards for ongoing AMC work
 through NSU and GSM project groups. During the year ITI Mankapur
 generated SSU revenue worth Rs. 6.11 Crs, out of which Rs 2.95 Crs. is
 from SSU cards repair and Rs. 3.03 Crs.  is from BTS card repair.
 ITI Mankapur has established Finishing Schools for the engineering
 under graduates pursuing higher studies or skill development. Under
 Finishing School project towards the knowledge based activities, ITI
 Mankapur earned revenue of approx. Rs 0.16 Cr. while imparting training
 on technical innovation and skill up gradation to the engineering
 students from various reputed Engineering. Colleges of the country,
 which helps them in getting better career opportunities.
 During the Financial year 2014-15, the plant has bagged 2 National
 Safety Awards for Performance Year 2012 - WINNER for Lowest Average
 Accident Frequency rate and WINNER for Accident Free year accumulating
 to 26 such awards in past 14 years.
 Austerity measures undertaken at ITI Mankapur have resulted in
 reduction of expenses on different accounts especially in the area of
 energy conservation. The major steps undertaken for energy conservation
 during the year 2014-15 are optimization in usage & running of central
 air conditioning plant, power factor management to get electricity
 billing benefits etc.  As a result, the physical units consumed in the
 year 2014-15 in the factory has reduced by about 10 lakh units i.e.
 more than 25% saving as compared to year 2013-14.
 NFS cable laying project
 Rae Bereli plant is Executing purchase order for laying of optical fiber
 for the G package for the prestigious NFS project. This order is Valued
 at approximately Rs.1800 Crores (including AMC).
 Solar Charge Controller Unit (CCU)
 CDAC(T), and ITI Ltd submitted a joint proposal for the Development of
 Solar Charge Controller Unit for Telecom Application as a technology
 development project under NaMPETPh-II. The National Steering Committee
 of NaMPETPh-II has approved this proposal for funding, by DeitY. The
 major objectives of the proposal involve the design, development,
 testing, and fabrication of prototypes and for this purpose.
 Memorandum of Agreement is entered into with Centre for Development of
 Advanced Computing, Vellayambalam, Thiruvananthapuram (CDAC-T).
 These equipments are required for supplying power to BTS of cellular
 network. A huge market is expected from BSNL/MTNL and other cellular
 SMPS Project
 With a CAPEX of Rs 3.4 Crores SMPS Power Plant business has been
 expanded with high capacity power plant which includes all ranges of
 power plants required by BSNL/MTNL as given below:
 - 25A , Ultimate Capacity 200A Indoor
 - 25A , Ultimate Capacity 200A Outdoor
 - 50A , Ultimate Capacity 450A Indoor
 - 50A , Ultimate Capacity 450A Outdoor
 - 100A , Ultimate Capacity 3000A Indoor
 Contract Manufacturing
 With a CAPEX of Rs. 1.54 Crores following contract manufacturing
 business has been taken up
 - Signed rate contract with BHEL Jagdishpur for repair of tools/
 contract manufacturing of items.  Already executed small value of
 - Registered with Rail Coach Factory as approved vendor and tenders are
 being addressed.
 - Discussion with CDAC Noida is in process for Rate contract of PCB
 - Manufactured 500 nos. of VTS card of M/s Sway using SMT line as a job
 work and based on the performance report rate contract to be signed for
 future orders.
 With a CAPEX of Rs. 3.0 Crores a production line of PLB HDPE
 (Permanently lubricated High Density Poly Ethylene) Pipe, used for
 laying of optical fiber cable (OFC) is being set up. Orders for all the
 machinery have been placed. Installation & commissioning of 350 kg/hr
 capacity HDPE production line has been completed. The probable
 customers are BSNL/ MTNL/Defense and other Telecom Service Providers.
 3D Printer
 RB unit is entering into a new era of manufacturing with 3D Printing
 Technology. 3D printing is evolving rapidly, for fast prototype
 development requirements in numerous industries including defense,
 aerospace, automotive and healthcare. 3D printing products are far
 superior (lighter, stronger, customized, already assembled) and cheaper
 than those designed with traditional manufacturing processes. That is
 because 3D printing can control exactly how material is deposited
 (built up), making it possible to create structures that cannot be
 produced using conventional means. The planned CAPEX for this project
 is Rs. 4.40 Crores.
 VTS Project
 ITI-RB has signed MoU with M/s Sway Techno Solutions Pvt Ltd, Noida,
 for Vehicle Tracking System(VTS), Personnel Tracking and Object/ Asset
 Tracking. ITI RB unit will be manufacturing the hardware and
 Application software portion will be taken care by MoU partner.
 The plant has already addressed a few tenders for these products and
 following potential customers are being identified.
 - Defence & Para-military forces ITBP Delhi
 - Coal mines/Oil Marketing Companies
 - Banks
 Proof of Concept (POC) for the safety of ATM of State Bank of Patiala
 at Jalandhar and other fve locations have been successfully completed.
 Estimated CAPEX for this project is Rs. 3.0 Crores.
 Skill Development
 The plant has initiated many programmes for skill development in
 partnership with Telecom Sector Skill Council (TSSC).
 - ITI RB is the first unit in ITI to conduct Training for trainers
 programme for BSS support course.
 - About 50 Engineering students of 3rd year, E&C branch are expected to
 register for training on BSS support QP.
 - Training is planned during the month of March & May, 2015.
 - Such training programme will generate good revenue for ITI.
 ITI Naini is gearing up for addressing Solar Projects- particularly
 production of SPV modules of both low and high capacity/wattage. For
 supply of Solar panels, IEC certification is mandatory in most of the
 cases. In this direction, ITI Naini has already got IEC certification
 for low wattage (up to 50W) modules.
 Highlights for the year 2014-15
 Reduction of sundry debtors from Rs. 15.18 Crores to Rs. 8.88 Crores by
 focusing on realization against opening balance (net of provision) as on
 1.  High Wattage production line with manual Tabbing and Stringing has
 been stabilized.
 2.  The plant is ready for bulk production of SPV up to modules 300W.
 3.  The card repair and other service activity performed to the tune of
 approx. Rs. 14.75 Lakhs.
 4.  Skill development training program onSolar module Technician
 conducted for ITI students = 02 Programs (for 62 students).
 5.  In-house fifteen (15 no.) training programs conducted for ITI
 6.  Surveillance audit of ISO 9001 and ISO 1401 are conducted.
 The Unit has achieved a turnover of Rs. 146 Crs. for the year 2014-15
 registering profit. The work of SECC and NPR Project in the allotted
 States has been completed and additional orders for Data Digitization,
 Data Merging and Permanent Data Centers worth Rs. 55 Crs under these
 Projects would be executed by the plant.
 As a part of diversification of products, plant has made inroads in the
 Defense Manufacturing area and Space Electronics by supplying Cables,
 Bare PCBs and Assembled PCBs to NPOL, HVF Avadi, VSSC etc. Separate
 manufacturing area for Space Electronics fabrication has been set up to
 meet the requirements of stringent quality norms of Space Related
 AMC contract worth Rs 93 Crs has been renewed with BSNL and MTNL for
 MLLN and SSTP Equipments for further 5 years and 3 years respectively.
 Orders worth Rs 11.83 Crs for MLLN RNP Cards and Modems, Data Base
 License for SSTP, NMS Sever up gradation orders from BSNL / MTNL have
 been received during 2014-15.
 Palakkad plant has successfully completed re- certification audit for
 Quality Management System and surveillance audit for Environment
 Management System. In the Industrial Safety front, Palakkad has been
 the winner for the Outstanding Safety performance in the large size
 Engineering Industries Group from National Safety Council Kerala
 The sales performance of Srinagar Unit for FY 2014- 15 is Rs.0.01 Crore
 against Services. ITI Srinagar Plant has been facing various
 difficulties for retaining or posting talented manpower in Srinagar.
 With a view to motivate and develop the skills of the employees posted
 at Srinagar area, the company has envisaged training plans during
 November 2014. Priority will be given for training of employees working
 in J&K region, so that they can be employed on jobs requiring various
 skill sets by deputing them to other units, wherein training will be
 imparted in the specific skill set/ project etc. In accordance with the
 training plan, ten employees of Srinagar Plant initially have been
 trained in two batches on Assembly and Testing of SPV Modules at ITI
 Naini Plant, UP State.
 Srinagar Plant is also exploring the possibilities of initiating skill
 development training programmes of telecom sector skills for the
 students of Srinagar State. To begin with the Skill Development
 training in Base Station Support Engineer (BSS) of TSSC Qualification
 Pack is contemplated.
 Network Systems Unit achieved a performance of Rs 93.58 Crores. The
 performance mainly comprises of annual maintenance contract for fixed
 line OCB exchanges worth Rs 36.50Crs. for BSNL& MTNL and AMC for ASCON
 up to November 14 worth Rs 56.93 Crs.
 From Dec-14, the renewal of AMC for ASCON for another five years with
 average annual value of around Rs. 88 Cr has been finalized with MoD.
 Also another AMC proposal for 12 1 up gradation project for Indian Army
 with average annual value of around Rs. 11 Cr/annum has also been
 - Performance of ROs for the FY 2014-15 is Rs.  155.67 Crs.
 - Sundry Debtor realization during 2014-15 is Rs.  99.18 Crs.
 - Order bagged in 2014-15 is Rs. 77.97 Crs.
 - Rs. 179.88 Crs orders on hand as on 01.04.2015.
 - RO Kolkata completed frst phase of NPR in West Bengal, enabling
 Palakkad Unit to bill Rs. 17 Crs.
 New Projects taken up in 2014-15
 - E-Tendering services for DDA, Delhi. Estimated business Rs. 100 Crs.
 in 5 years - RO Delhi
 - Supply, I&C of EPABX Systems of value Rs. 6.18 Crs. for Cabinet
 Secretariat- RO Lucknow
 - Establishment of LAN / WAN for East Delhi Municipal Corp. of value
 Rs. 3.1 Crs. - RO Delhi
 - Implementation of Online Admission & Exam for University, value Rs.
 1.8 Crs. - RO Lucknow
 Major orders successfully completed in 2014-15
 - E-Tendering business of value Rs. 38.24 Crs. - RO Delhi, Bangalore,
 Kolkata & Lucknow
 - Establishment of Police Control Room of value Rs. 6.82 Crs. for UP
 Police  RO Lucknow
 - Supply, I&C of EPABX Systems of value Rs. 6.18 Crs. for Cabinet
 Secretariat- RO Lucknow
 GSM Projects:
 The Company carried out AMC services for GSM Network worth Rs.83.43
 Crore against BSNL orders in West Zone.
 The company''s rating for the year 2013-14 is GOOD with a composite
 score of 2.86. This composite score is BEST during twelve years, i.e.
 2002-03 to 2013-14. The company has signed Memorandum of Understanding
 with the Administrative Ministry for a Sales Turnover of Rs.1800 Crores
 for the year 2014-15.
 In the Union budget 2014-15, Government had approved Rs 192 Crore as
 first phase disbursement to the Company towards capital expenditure
 under revival plan. This amount has already been received by ITI and
 several projects under Defence business, SCADA, MLLN, Smart cards, HDPE
 Pipe manufacturing, SMPS, Component screening, Vehicle Tracking System
 (VTS), 3D printing, Contract manufacturing, Business with PSUs etc.,
 have been identified. The infrastructure up gradation for implementation
 of these projects is in progress in Bangalore, Rae bareli and Palakkad
 plants.  The Company is looking at the following business opportunities
 in the future.
 - Defence projects
 Being one of the leading suppliers of encryption equipments for the
 secured communication in the Defence networks, ITI is looking at
 Defence market as a great opportunity for its business. With greater
 thrust towards domestic manufacturing of Defence equipments, ITI
 proposes taking up manufacturing of new products for Defence like,
 Software Defned Radio (SDR), High Frequency Radio Handsets, TR modules
 for RADAR, equipments for Army Wide Area Network (AWAN Phase II) etc.
 The Ministry of Defence had approved in principle for the establishment
 of Strategic Business Units (SBUs) at ITI at Bangalore and Raebareli
 plants to take up manufacture of DRDO designed products at ITI. The
 formation of SBUs is aimed at establishing facilities at ITI for the
 production of strategically important network and communication
 components, modules, systems designed and developed by DRDO. Necessary
 action is under progress to achieve the above objective.
 Another major project which has been launched by Indian Army is ASCON
 Phase IV. Earlier three phases of ASCON project have been executed by
 ITI successfully. ITI is hopeful of winning the order for ASCON phase
 IV for which a tender has been released by Indian Army.
 - Solar Project:
 There has been special emphasis by the Government of India to implement
 the renewable energy sources including solar to overcome the
 environmental hazards and meeting the growing energy needs. ITI, having
 requisite expertise and experience for implementing Solar solutions, is
 planning to augment the solar panel manufacturing infrastructure in its
 Naini plant and is also planning to install one more manufacturing
 facility at its Srinagar plant. Naini plant has earlier executed Solar
 project for UP Police and BSNL. More orders are expected in this
 - Core Telecom Products:
 ITI is pursuing on addressing the core telecom market like GSM, Next
 Generation Networks (NGN), Long Term Evolution (LTE), Managed Leased
 Line Network (MLLN), SSTP etc.
 - LED Lighting:
 LED lighting is an environmental friendly option due to non-use of
 mercury. Market potential for this product is very good. ITI is
 planning to address this market. Potential areas of business
 opportunities are from National Highway Authority, State Governments
 and Municipal Corporations, CPWDs/ PWDs, Railways, Hotels and Hospital
 Industry etc.
 - Wi-Fi for NOFN network:
 Huge orders are anticipated for Wi-Fi equipments for deployment in NOFN
 (National Optic Fiber cable Network) project of Government of India.
 ITI is in the process of empanelling the back end partners for the
 execution of anticipated orders.
 - Manufacture of Citizen ID Cards:
 As an extension of NPR project which is under execution by ITI as a
 consortium partner with BEL and ECIL, ITI is also looking at the huge
 opportunity of manufacturing SMART card based citizen identity cards
 for all the citizens in the Country. ITI is already having SMART card
 manufacturing facility at its Palakkad plant. This will be further
 augmented to take manufacture of citizen ID cards.
 - Manufacturing of Li-Ion Batteries:
 High density back up power solutions using Li-Ion technology have been
 proved in all fields of consumer electronics like PCs, Mobile phones,
 Tablet PCs etc,. They are also making inroads into other applications
 like powering GSM towers. ITI is planning to take up manufacturing of
 Li-Ion batteries in one of its plants.
 During the year, your company has contributed Rs. 97.37 Crore to the
 exchequer towards duties and taxes.
 Value of deposits held by the company was NIL.  Deposits aggregating to
 Rs. 0.24 Crore had matured for payment, but were not claimed on due
 The comments on the accounts for the year 2014- 15 by the Comptroller
 and Auditor General of India is appended.
 India Satcom Ltd., (ISL) is a Public Limited Company incorporated in
 the year 1987 by ITI, Unit Trust of India (UTI) and Equatorial Pacifc
 International Company (EPIC). Both UTI and EPIC sold their respective
 stakes in ISL to M/s Chris Tech Systems Pvt Ltd (CTSPL) during 2006.
 ITI also took steps to sell its entire 49% stake but the Government of
 India, Ministry of Communications & IT did not approve the proposed
 sale of ITI shares in ISL. Presently the shareholders in the Joint
 Venture are ITI (49%) and CTSPL (51%). ISL planned to revive the
 operations of the company through a JV proposal of National Building
 Construction Corporation Ltd, a Govt. of India Enterprises (NBCC), on a
 land purchased by ISL from Karnataka Industrial Area Development Board
 (KIADB). ISL will take steps to obtain the required approvals for
 ISL-NBCC JV proposal as directed by ITI and BIFR, once the Forest case
 on this ISL land purchased from KIADB is resolved in the Hon''ble High
 Court of Karnataka.
 Quality policy of ITI is to deliver high quality, secure and reliable
 products, services and solutions by empowering every employee. Quality
 Assurance wings have been established in all the manufacturing units of
 ITI Ltd. The QA wings are responsible for Quality of products and
 services. The Units have been well equipped with necessary test
 facilities and test systems for carrying out elaborate tests,
 conducting reliability evaluations on all the products to ensure
 quality. This is achieved by sound and effective Quality Management
 The five manufacturing plants at Bangalore, Palakkad, Mankapur, Rae
 Bareli and Naini have been accredited with ISO 9001:2008.NSU Bangalore
 is also accredited with ISO 9001-2008. The periodical Surveillance
 Audit & Recertification Audits have been conducted successfully. Keeping
 in tune with the Global concern for Environmental Management, all the
 plants have gone in for ISO 14001:2004 EMS certifications. The guidance
 and support to all the units for training, implementation surveillance
 audits & recertification audits of ISO 9001-2008 and EMS 14001: 2014 are
 provided by Corporate Quality Assurance.
 BSNL has granted AIS (Approved Inspection Scheme) status by BSNL QA for
 SIM Cards. Localization activities continued during the year to procure
 items such as cables, connectors and PCBs for GSM- BTS Project with
 Alcatel approval and after approval from VDA, VRC, Standards Components
 Testing and Reliability Labs provide Qualification Approval
 Standardizations of electronic components Vendor Development and Vendor
 Rating after stringent evaluation in Testing in Reliability and
 Environment al laboratory.
 The President of India is empowered to appoint the Directors of the
 Company from time to time and also to determine the terms of office of
 such Directors in terms of the Articles of Association of the Company.
 Accordingly, the following changes on the Board of your Company were
 effected during the year as per the directives of the President of
 - Shri P K Gupta appointed as Director Marketing w.e.f 27.03.2014
 - Shri S Gopu was appointed as Director-HR w.e.f 16.04.2014
 - Shri R K Mishra was appointed as Government Director in the place of
 Shri N K Joshi, w.e.f 25.07.2014
 - Dr Janaki Ananthakrishnan, has been appointed as Government Director
 in the place of Shri R K Mishra, w.e.f 13.05.2015. Subsequently,
 Government of India has appointed her as Director Finance w.e.f 10th
 June 2015.
 - Shri K K Gupta, Director Production was granted extension of tenure
 w.e.f 01.06.2015.  Shri K K Gupta, Director Production was also
 entrusted with additional charge as Chairman and Managing Director in
 the place of Shri K L Dhingra, who was holding post as Chairman and
 Managing Director from 07.04.2010 Shri K L Dhingra was relieved from
 services w.e.f 03.06.2015
 - Shri Srikanta Panda, has been appointed as Government Director in the
 place of Dr Janaki Ananthakrishnan, w.e.f 29.07.2015, since she has
 been appointed as Director Finance.
 The Board placed on record its deep appreciation of the valuable
 services rendered by the Directors whose term of office ended during the
 In accordance with the provisions of the Companies Act, 2013, Shri P K
 Gupta and Shri S Gopu retire by rotation and are eligible for
 Independent Directors shall not be liable to retire by rotation. The
 Independent Directors of your Company have given the certificate of
 independence to your Company stating that they meet the criteria of
 independence as mentioned under Section 149 (6) of the Companies Act,
 The policy on Director''s appointment and remuneration and also
 remuneration for Key Managerial Personnel forms part of Corporate
 Governance Report of this Annual Report.
 During the year, 6 meetings of the Board were held on 07.04.2014,
 30.05.2014, 13.08.2014, 13.11.2014, 09.01.2015 and 13.02.2015.
 There were no employees of the Company who received remuneration in
 excess of the limits prescribed under Companies Act, 2013 read with
 Companies (Appointment & Remuneration of Managerial Personnel) Rules,
 The new Companies Act, 2013 and amended Listing Agreement have
 strengthened the governance regime in the country. Accordingly, a
 separate section on corporate governance practices followed by the
 Company, together with a certificate from the Company''s Auditors
 confirming compliance forms an integral part of this Report. A
 Certificate of the CEO and CFO of the Company in terms of Clause 49 of
 Equity Listing Agreement, inter alia, confirming the correctness of the
 financial statements and cash fow statements and adequacy of the
 internal control measures, is also annexed.
 During the year, Secretarial Audit was carried out by Shri D
 Venkateswarlu, Company Secretary in practice, and the Secretarial
 Auditor of the Company for the financial year 2014-15. There were
 observations given by Secretarial Auditor of the Company. The detailed
 report on Secretarial Audit and reply of the Board of Directors to the
 observation made in the sand report are appended as an Annexure to this
 The extract of annual return in Form MGT 9 as required under Section
 92(3) and Rule 12 of the Companies (Management and Administration)
 Rules, 2014 is appended as an Annexure to this Report.
 Related Party Transactions
 In line with the requirements of the Companies Act, 2013 and Equity
 Listing Agreement, your Company has formulated a Policy on Related
 Party Transactions which is also available on Company''s website at The Policy intends to ensure that proper
 reporting, approval and disclosure processes are in place for all
 transactions between the Company and Related Parties.  All Related
 Party Transactions entered during the year were in Ordinary Course of
 the Business and on Arm''s Length basis. No Material Related Party
 Transactions, i.e.  transactions exceeding ten percent of the annual
 consolidated turnover as per the last audited financial statements, were
 entered during the year by your Company. Accordingly, the disclosure of
 Related Party Transactions as required under Section 134(3) (h) of the
 Companies Act, 2013 in Form AOC 2 is not applicable.
 M/s. Sundar Srini & Sridhar, Chartered Accountants, Bangalore, were
 appointed by Comptroller & Auditor General of India as Statutory
 Auditors for the year 2014-15.
 The following forms of chartered Accountants were appointed as Branch
 Auditors for different plants of the Company for the year 2014-15
 Unit Name of Auditor
 1. Bangalore Sundar Srini & Sridhar, Bangalore
 2. Naini Nagendra Gupta & Company,Allahabad
 3. Rae Bareli Rajesh Srivastava & Associates,Lucknow
 4. Mankapur Sri Prakash & Co. Gorakhpur
 5. Palakkad Mahadevan & Sivarajan,Palakkad
 6. Srinagar S D M & Co, Srinagar
 Your Company has appointed M/s GNV Associates, Cost Accountants,
 Bangalore, as Cost Auditors for the year 2014-15 for the cost audit of
 south-based units located at Bangalore, Palakkad and also consolidation
 for the Company and M/s. Aman Malviya & Associates, Lucknow as Branch
 auditors for the Cost Audit of North based units located at Naini, Rae
 Bareli, Mankapur and Srinagar with the approval of the Board and
 Ministry of Corporate affairs.
 The Company has appointed Shri D Venkateswarlu, Company Secretary in
 practice, to undertake the Secretarial Audit of the Company.
 The Company has set up Hospitals, Schools and Playgrounds at various
 Manufacturing Units for the benefit of employees and the local
 The Directors confirm that
 (a) In the preparation of the annual financial statements for the year
 ended 31st March 2015, the applicable accounting standards had been
 followed along with proper explanation relating to material departures;
 (b) that such accounting policies have been selected and applied
 consistently and judgments and estimates have been made that are
 reasonable and prudent so as to give a true and fair view of the state
 of affairs of the company at 31st March 2015 and of the loss of the
 company at that date;
 (c) that proper and sufficient care for the maintenance of adequate
 accounting records in accordance with the provisions of Companies Act,
 2013 for safeguarding the assets of the company and for preventing and
 detecting fraud and other irregularities;
 (d) that the annual financial statements have been prepared on a going
 concern basis; and
 (e) that proper internal financial controls were in place and that the
 financial controls were adequate and were operating effectively.
 (f) that systems to ensure compliance with the provisions of all
 applicable laws were in place and that such systems were adequate and
 operating effectively.
 Details of Loans, Guarantees and Investments covered under the
 provisions of Section 186 of the Companies Act, 2013 are given in the
 notes to the Financial Statements.
 As per the requirement of The Sexual Harassment of Women at Workplace
 (Prevention, Prohibition & Redressal) Act, 2013 (''Act'') and Rules made
 there under, your Company has constituted Internal Complaints
 Committees (ICC) to redress complaints received regarding sexual
 harassment. All employees (permanent, contractual, temporary, trainees)
 are covered under this policy.
 The following is a summary of sexual harassment complaints received and
 disposed off during the year 2014-15
 No. of complaints received and disposed off: Nil
 Employee strength at the end of the year 31st March, 2015 was 6177 out
 which 542 were female employees.
 As on 31.03.2015, there were 992 employees belonging to Scheduled
 Castes and 58 belonging to Scheduled Tribes.
 41 Contract Engineers / Contract Technicians and 8 Tenure Officers were
 recruited during the year 2014- 2015.
 Employees belonging to Physically Challenged Persons numbering 88 and
 Ex-servicemen category numbering 30 were on the rolls of the company as
 at the end of the financial year.
 Keeping in view the Company MoU target on HRM  Training for the FY
 2014-15, the HRD initiatives were more oriented towards imparting
 Training to Executives / Non-Executives for skill / knowledge
 development in Telecom and IT. Training Programmes and Workshops were
 organized in Broadband, OFC, Mobile, NGN, Cyber Security and
 Communication Technologies. Towards improving computer literacy in the
 company, need based Microsoft Office training programmes were imparted
 at Plant levels.  Executives were nominated to external training
 programmes in advanced / specialized technologies like Encryption etc.
 Training programmes were also organized in-house on Soft Skills, Stress
 Management, Safety, besides organizing awareness programmes on Health,
 Environment, Energy Management; Government of India''s initiative Make
 in India  Zero Defect - Zero Effect etc., were organized
 In a nutshell, as against the MoU target in respect of HRM performance
 indicators, 56 training programmes have been organized as against the
 target of 40 training programmes. The company trained 1117 Executives
 and 438 Non-Executives achieving 1195 and 608 training mandays
 The MoU target on HRM Training has been fully met and achieved
 ''Excellent'' MoU Rating for the year 2014-15.
 The Industrial Relations scenario in the Company was cordial during the
 year. Employees'' Union and Officers'' Association extended their
 co-operation and support in ensuring smooth work fow and helped to meet
 the Company''s objective in revival of the company.
 All Units / Offices have established Check-points in their concerned
 offices to make more efforts for effective Implementation of the Official
 Language Policy, monitored by the Official Language Implementation
 Committees constituted in every Unit / Office.
 The Progress of Implementation of Official Language in Corporate Office
 as well as in all subordinate Units / Offices is also being periodically
 reviewed by the OLIC Committee of Corporate office.
 In order to enhance the working knowledge of Official Language amongst
 our employees, officials have been sent to Training Programme organized
 by the government for imparting training in Hindi, Hindi typing and
 Hindi Stenography as per our requirement. The Official Language Cell of
 the different Units / Offices have also conducted internal training
 programmes.  Besides, employees were encouraged to take part in Hindi
 Prabodh, Praveen & Pragya examinations and have been sanctioned
 financial incentives.
 Since eighty percent (80%) of the staff working in our Units / Offices
 like Naini, Rae Bareli, Mankapur, New Delhi, Mumbai, Lucknow &
 Corporate Office have acquired a working knowledge of Hindi, such Units
 / Offices have been notified in the Gazette of India as per OL Rules 10
 (2) & (4), 1976.
 For Bangalore based Units/Offices, a short term workshop for Hindi
 Unicode training programme was organized in the HRD department of
 Corporate Office, with the help of Deputy Manager-OL&HR, BHEL,
 Bangalore. More than 30 officers/non-officers participated and they were
 trained how to use the Hindi Unicode Fonts in day-to-day typing work.
 After reviewing our quarterly report, an appreciation letter was also
 received from Deputy Director-OL, Official Language Department DoT, New
 Delhi as well as Deputy Director (Implementation), Regional
 Implementation Office, Bangalore.
 A Joint Hindi Fortnight Programme for Bangalore based PSUs /
 Organizations between 30.07.2014 & 27.08.2014 was organized by TOLIC
 (Town Official Language Implementation Committee), Bangalore and various
 types of competitions were arranged during this occasion. On this
 occasion many officers/ Non-officers of ITI Limited, Bangalore based
 Units / Offices participated in these competitions and more than 14
 Officers / Non-Officers have got the prizes.  Hindi Workshops were
 organized for encouraging progressive use of Hindi during 2014-15.
 Company''s website has been made bilingual (i.e. English and Hindi).
 During the year, Vigilance Department functioned effectively. The prime
 focus of the vigilance activities was on Preventive Vigilance and
 Reduction in pendency of complaints by expediting Investigations.
 Vigilance Department has suggested several System Improvement Measures
 to various departments to improve the transparency and efficiency of the
 procedures. Constant and continuous efforts have been made in this
 direction as a part of Preventive Vigilance. Keeping in view the
 emphasis laid by Company-Vigilance, Project Management Manual for
 Telecom Infrastructure Projects has been brought out by the Company.
 The Company observed Vigilance awareness week from 27th October 2014 to
 1st November 2014 at Manufacturing Units, Business Establishments, as
 well as Corporate Office.
 The Vigilance department is endeavoring to lay far more emphasis on
 preventive vigilance, scrutinizing the APR documents and conducting
 periodic / surprise checks in sensitive departments.
 During the year 2014-15, out of 221 RTI requests, information was
 provided against 175 requests, 21 requests rejected and 2 requests were
 transferred to another Public Authority. The RTI returns on quarterly
 basis is being submitted to the Ministry for forwarding the same to
 Central information Commission and the same is published on our Company
 The expenditure on entertainment was NIL.  Expenditure on official
 travel abroad by the officials of the Company amounted to Rs. NIL during
 the year.
 Particulars with respect to Conservation of Energy, Technology
 Absorption and Foreign Exchange Earnings and Outgo, required to be
 disclosed under the Section 134 of the Companies Act, 2013 read with
 Rule 8 of the Companies (Accounts) Rules, 2014, are annexed.
 ITI signs MoU with Department of Telecommunications
 ITI Limited signed the Memorandum of Understanding (MoU) for the year
 2015-16 with the Department of Telecommunications, Ministry of
 Communications & IT, Government of India. Shri Rakesh Garg, Secretary,
 Department of Telecommunications and Shri K.L. Dhingra, former Chairman
 and Managing Director, ITI Limited signed the MoU on March 30, 2015.
 The MoU focuses on ITI''s role in the field of Telecommunications in the
 current market scenario and pursue opportunities arising out of
 Government''s Make in India campaign for indigenous electronic
 equipment manufacturing for diversified areas like Railways, Defense,
 etc. in addition to telecommunications also to play a vital role in
 Government of India funded Projects like Network for Spectrum (NFS).
 ITI Limited has been conferred with Certificate of Excellence award by
 the Institute of Economic Studies, Delhi (IES) at the time of the
 Seminar on Economic Development on 13th of August 2014 at hotel Lalit
 Ashok, Bangalore.
 Your Directors place on record their sincere thanks for the assistance
 and support extended by the Ministry of Communications & IT and various
 other Ministries of Central and State Governments viz., Karnataka,
 Uttar Pradesh, Kerala and Jammu & Kashmir and look forward for their
 continued support and co-operation in future.
 Your Directors also wish to express their gratitude for the
 co-operation and assistance extended by BSNL and MTNL, Banks,
 Suppliers, Shareholders, Bondholders, Depositors, Agents, Customers and
 Foreign Collaborators, Committee on Public Undertakings (COPU),
 Standing Committee on Public Enterprises (SCOPE) and Standing Committee
 on Information Technology.
 Your Board also expresses its sincere thanks to the Comptroller and
 Auditor General of India, Chairman and Members of the Audit Board and
 Statutory and Branch Auditors.
 Your Directors take this opportunity to place on record their
 appreciation for the valuable contribution made and excellent
 co-operation rendered by the employees at all levels for the progress
 and prosperity of the Company.
                           For and on behalf of the Board of Directors
                                                        (K. K. Gupta)
                                                  Director Production 
                           Addl Charge Chairman and Managing Director
 Place: Bangalore
 Date : 11th August 2015
Source : Dion Global Solutions Limited
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