The Directors have pleasure in presenting the 64th Annual Report of
the Company together with Audited Accounts and Auditors'' Report thereon
for the year ended 31st March 2014.
The Company has achieved Sales and Production of Rs. 769.90 Crore and Rs.
767.91 Crore respectively during the year 2013-14 against Rs. 921.04
Crore and Rs. 910.16 Crore respectively during the previous year 2012-13.
The Company could achieve this turnover in spite of the fact that our
major customers BSNL and MTNL have not placed orders like earlier
years. The net loss of the Company for the year 2013-14 is Rs. 344. 26
Crore against the figure of Rs. 182.06 Crore for the year 2012-13, which
however, was after considering a grant of Rs. 177.23 Crore by the
The net loss for the year 2013-14 is the lowest ever loss in the last
twelve 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. 184.99 Crore,
which is comparable for that of previous year at Rs. 187.27 Crore.
2. SANCTION OF REVIVAL PROPOSAL :
The Directors are pleased to inform that ITI''s Revival Plan has been
approved by the Cabinet Committee on Economic Affairs (CCEA) on 12th
February 2014. The financial package approved by CCEA includes funding
support for Rs. 1892.79 Crore as grant-in-aid towards clearing of part of
its liabilities and Rs. 2264 Crore as equity for upgradation and
implementation of several projects as part of revival plan. The
Government has already approved release of Rs. 460 Crore as frst stage
disbursement to the Company towards capital expenditure in the recent
budget for the year 2014-15.
In the Revival plan, around 18 projects have been identified for
implementation. This includes expansion of capacities for manufacturing
of existing telecom products like Encryptors for Defence sector, G-PON,
DWDM, MLLN, Ethernet, Broadband equipments, SMART cards etc. and also
diversified products like Solar, LED lightings, Data center and Defence projects.
These projects are allocated to all the six units of ITI for their
revival. The project implementation will be done in three phases. For
the implementation of projects in the 1st phase an amount of Rs. 460
crore has already approved by the Government in the recent budget. The
amount required for the implementation of projects in 2nd and 3rd
phases is expected to be released subsequently. For monitoring of the
implementation of the projects, committees have been formed at unit
level, corporate level at ITI and at DoT level and also at APEX level.
As part of diversifcation, all the Units have taken various initiatives
for enhancement of production and sales.
Mankapur Unit developed and entered into production of various LED
based lighting products. ITI Mankapur executed an order from ONGC under
their Corporate Social Responsibility (CSR) Swach Roshni Abhiyan
Naini Unit established High Wattage Solar Panels manufacturing line of
280 W SPV panel and tested internally. For commercial orders, IEC
certification is under process.
Rae Bareli Unit developed ''Total Solution for Lightening & Surge
Protection Unit (LSPU) and the frst lot of 39 units were supplied to
Ahmedabad BSNL Gujarat Circle.
Palakkad Unit has established inroads in the Defence manufacturing area
by supplying to NPOL (National Physical Oceanographic Laboratory), HVF
(Heavy Vehicle Factory) Avadi, etc. The Plant has opened a separate
manufacturing area for meeting the requirements of production of Space
related products and have supplied to VSSC (Vikram Sarabhai Space
Centre) both bare and assembled PCBs.
- The turnover for the year 2013-14 is mainly constituted from National
Population Register (NPR), GSM-WZ, GSM-SZ, G-PoN, AMC for OCB & ASCON,
Defence and IT solutions.
- The Company is executing Turnkey Project of Registrar General of
India (RGI) for creation of Multi Purpose National Identifcation Card
under National Population Register (NPR) project for the country.
- Company is executing Restructured Accelerated Power Development
Reforms Program (RAPDRP) of value Rs. 307 Crore from Tamil Nadu
Electricity Board (TNEB).
(Rs. in Crore)
Sl. Product/Project ED & ED &
No. Service Service
1 C-DOT Products 0.16 1.61
2 Diversifed 16.63 9.37
Products / Cont. Mfg.
3 Solar Panel 18.85 22.76
4 PCM MUX 1.33 0.52
5 MLLN 105.45 11.07
6 GSM WZ (Incl. BTS, 84.04 61.62
RTT, Shelter & AMC )
7 GSM MTNL 0 1.15
8 GSM SZ 0.96 1.75
9 ADSL CPE 0 2.89
10 Misc. Services 26.12 24.82
11 Defence / ASCON 69.02 60.96
12 OCB AMC Business 37.82 42.05
13 SIM / USIM / SMART 0.35 26.54
14 NPR/SECC Projects 234.25 410.14
15 SMPS 1.27 1.65
16 G-PoN 8.77 16.29
17 ROs / CCO / IT 150.27 207.80
18 Data Centre 14.61 18.05
TOTAL (including ED & 769.90 921.04
Projects executed during the year 2013-14:
National Population Registration (NPR) and Socio Economic & Caste
Census (SECC) projects:
ITI is one among the consortium of three PSUs (other two PSUs being BEL
& 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. The above consortium
is also executing SECC project for the Ministry of Rural Development.
MLLN (Managed Leased Line Networks):
ITI has successfully rolled out countrywide MLLN network for BSNL in
technical collaboration with a technology partner. ITI had received an
expansion order from BSNL and the same has been executed during
ITI has implemented GSM Projects in BSNL West Zone and in technology
alliance with M/s Alcatel- Lucent & in South Zone in technology
alliance with Huawei. The Annual Maintenance Contract related works
have been carried out for West zone network.
G-PON (Gigabit Passive Optical Network):
ITI has been a major supplier of this product to BSNL and MTNL using
the imported technology. Some G-PON equipments against the earlier
orders have been supplied during 2013-14. Requirements are anticipated
for this product in future also for applications like FTTH.
ITI is the leader in supplying encryption equipments for the secured
communication in the Defence networks. ITI has supplied telecom
equipment like Telephones, Ruggedized Telephone Exchanges, Transmission
equipments, VSAT etc. to the Defence sector. ITI has also executed
ASCON project (Phase I, II, & III) successfully.
Naini Plant of ITI is having requisite expertise and experience for
implementing Solar solutions. ITI has executed solar projects for BSNL
as well as UP police. BSNL and other Service Providers are planning to
upgrade their outdoor GSM Telecom BTS sites with Solar Power especially
in rural areas where grid power supply position is poor. ITI Naini is
planning to augment the solar panel manufacturing infrastructure in its
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 State Governments are pursuing E-Governance projects
for taking the benefit of IT to the Village Panchayats and they have
made a substantial budget provision for the same. ITI is aggressively
pursuing this Market segment. ITI is also executing Accelerated Power
Development and Reform Programme (APDRP) of Tamil Nadu state.
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,
BSNL and MTNL under Annual Maintenance Contracts. (AMC)
The performance of the Company for the year 2013- 2014 as compared to
the previous year is as follows:
(Rs.. in Crore)
SI. Particulars 2013-2014 2012-2013
i. Sales including 770 921
ii. Value of 768 910
iii. Loss before tax 344 182
iv. Loss after tax 344 182
v. Financing 122 85
vi. Depreciation 17 18
vii. Capital Employed 952 1226
(Net Fixed Assts Net
viii. R&D Expenditure 17 18
As your Company has incurred a loss, the Directors are not in a
position to recommend any dividend for the year 2013-2014.
6. HIGHLIGHTS OF THE PRODUCTION PLANTS AND SERVICE UNITS:
Bangalore Plant achieved a performance of Rs. 51.12 Crore. This
performance consist of supply of Defence equipment of Rs. 17.11 Crore,
Data Centre services worth Rs. 14.61 Crore, AMC, repair and Miscellaneous
products worth Rs. 19.40 Crore.
During the year, the Plant has bagged National Safety Award for the
Performance Year 2011 RUNNER for accident free category on September
Mankapur Plant achieved a performance of Rs. 11.27 Crore. The Plant has
executed 2.157 Million Nos. of Biometric Data entry against NPR-40
Project worth Rs. 8.29 Crore and Banking/Miscellaneous products worth Rs.
During the year, the Plant has bagged 2 National Safety Awards
Performance Year 2011 WINNER for ''Lowest Average Accident Frequency
Rate'' Category and Performance Year 2011 WINNER for ''Accident Free
Year'' Category on September 18, 2013.
RAE BARELI PLANT:
Rae Bareli Plant achieved a performance of Rs. 61.52 Crore; Rs. 8.77 Crore
from dispatch of ONT of GPON equipment, Rs. 1.42 Crore from the supply of
SMPS & Misc. equipments, Rs. 22.81 Crore worth of GSM Franchisee business
and 73.25 lacs nos. of Biometric Entry against NPR-40 project valuing
Rs. 28.52 Crore.
Naini Plant achieved a performance of Rs. 20.60 Crore. The Plant has
supplied 131 Nos. of Solar Panel equipment worth Rs.18.86 Crore, Misc./
Contract Manufacturing worth of Rs. 0.06 Crore and 4.37 lacs nos. of
Biometric Entry against NPR-40 project valuing Rs. 1.68 Crore.
Palakkad Plant achieved a performance of Rs. 300.60 Crore. The Plant has
captured Bio-metric data collection/data entry against NPR/SECC
Projects worth Rs. 193.66 Crore, Supply of MLLN & AMC Project worth Rs.
105.45 Crore and Miscellaneous/ Contract Manufacturing worth Rs. 1.49
In the Industrial Safety front, consecutively for the second year,
Plant was runner up for the Outstanding Safety performance in the large
size Engineering Industries Group from National Safety Council, Kerala
Chapter and third prize winner from Directorate of Factories, Kerala
Government for large scale industries.
Srinagar Plant achieved a performance of Rs. 0.04 Crore against services.
A high level committee visited Srinagar Plant from 15th to 16th
November 2013 comprising Shri K.L. Dhingra, CMD; Shri N.K. Joshi, DDG
(SU) and Shri Shahbaz Ali, DDG (TPF) to review the functioning of
The committee in its report recommended short term, mid term and long
term measures for revival of the Unit.
Government allocation of Rs. 460 Crore for ITI Ltd under the budget for
year 2014-15 includes a provision for Srinagar Unit. The same will be
utilised for implementing the recommendations of the Committee.
NETWORK SYSTEMS UNIT:
Network Systems Unit achieved a performance of Rs. 89.73 Crore. The
performance mainly comprises of Annual Maintenance Contract for fixed
line OCB exchanges worth Rs. 37.82 Crore for BSNL & MTNL and AMC for
ASCON worth Rs. 51.91 Crore.
Regional offices and its Customer Care Organization (CCO) achieved a
performance of Rs. 151.59 Crore. This performance consists of Rs. 64.54
Crore supplies of ITI''s manufacturing products and other traded
products, Rs. 51.17 Crore of Services, Rs. 3.30 Crore by various CCOs and Rs.
32.58 Crore towards IT Projects.
HIGHLIGHTS OF REGIONAL OFFICES
- Performance of ROs for the FY 2013-14 is Rs. 151.59 Crore.
- Order bagged in 2013-14 is Rs. 68.82 Crore.
- Rs. 379.35 Crore orders on hand as on 01.04.2014.
- RO-Mumbai collected C-Form worth Rs. 88.57 Crore for other units.
- RO Mumbai realized payment of Rs. 17.59 Crore for
New Projects taken up by ROs in 2013-14 :
- Supply and Implementation of College Management Software - RO Delhi
- Establishment of Police Control Room RO Lucknow
- NPR project taken up for the state of Meghalaya - RO Kolkata
Big orders successfully completed by ROs in 2013-14
- Supply & Installation of Video Conferencing Systems of value Rs. 6.62
- Supply of Anti Riot Equipments of value Rs. 4.62 Crore to UP Police -
- e Tendering business of value Rs. 35 Crore - RO Delhi
The Company carried out AMC services for GSM Network worth Rs. 83.43
Crore against BSNL orders in West Zone.
7. RATING IN MEMORANDUM OF UNDERSTANDING
The Company''s rating for the year 2012-13 is GOOD with a Composite
Score of 2.94.
This Composite Score is BEST during Eleven years, i.e. 2002-03 to
The Company has signed Memorandum of Understanding with the
Administrative Ministry for a Sales Turnover of Rs. 1500 Crore for the
Company for the year 2014-15.
8. FUTURE OUTLOOK:
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 Defined Radio (SDR), High Frequency Radio
Handsets, TR modules for RADAR, Electronic Fuzes, equipments for Army
Wide Area Network (AWAN Phase II) etc.
Other major projects which have been launched by Indian Army are ASCON
Phase IV and Battlefeld Management System (BMS). Earlier three phases
of ASCON project have been executed by ITI successfully and ITI is
hopeful of getting order for ASCON phase IV project also. ITI has also
responded to the RFI against the BMS project and has presented details
on BMS solution to the Indian Army.
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.
Tablet PC manufacturing
Ministry of Human Resources Development has an ambitious plan of
distributing Tablet PCs to all students at College level for empowering
students to access educational data through internet. Similar
programmes are being launched by State Governments also. These devices
are also being used by common man for e-enabled applications similar to
mobile phones. Since the requirements are huge, ITI is planning to take
up manufacture of this product at its various units. ITI has already
been qualified for the low cost tablet PC supplies announced by the
Ministry of HRD and has been listed by DGS&D.
Core Telecom Products
ITI is pursuing on addressing the core telecom market like GSM, Next
Generation Networks (NGN), Long Term Evolution (LTE), and Managed
Leased Line Network (MLLN) etc. The LTE technology is expected to be
the future technology in mobile communications. ITI is planning to
take up manufacturing of these products by entering into collaboration
agreements with technology providers.
The Government funded projects like Network for Spectrum (NFS) require
many types of telecom equipments like DWDM, Carrier Ethernet,
Microwave, IP-MPLS equipments etc. in huge volumes. ITI is planning to
take up manufacture of these products with suitable technology
collaborations. In the tender foated by BSNL for laying optical cables
NFS project, ITI was L1 and has recently received Advance Purchase
Order (APO) from BSNL worth Rs. 2111 Crore (excluding AMC) for
establishment of optical fber network in two (out of seven) zones in
LED lighting is an environmental friendly system 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 expected from National Highway Authority, State
Governments and Municipal Corporations, CPWDs/ PWDs, Railways, Hotels
and Hospital Industry.
Considering the huge scope existing in the market of Data Center
particularly in the Government sector, for projects of national
importance like NPR, UIDAI and other Projects/Schemes envisaged by
Government agencies & PSUs, ITI is planning to establish its own Data
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 the felds 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.
9. CONTRIBUTION TO EXCHEQUER:
During the year, your Company has contributed Rs. 45.01 Crore to the
exchequer towards duties and taxes.
10. PUBLIC DEPOSITS:
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
11. REVIEW OF ACCOUNTS BY INDIAN AUDIT AND ACCOUNTS DEPARTMENT:
The comments on the accounts for the year 2013-14 by the Comptroller
and Auditor General of India is appended.
12. JOINT VENTURES :
INDIA SATCOM LIMITED
India Satcom Limited (ISL) is a Joint Venture Company incorporated on
5th October, 1987 by ITI, Unit Trust of India (UTI) and Equatorial
Pacifc International Company (EPIC). Both EPIC and UTI sold their
respective stakes in ISL to M/s Chris Tech Systems Pvt. Ltd. (CTSPL)
and ITI also took steps to sell its entire 49% equity stake in ISL to
CTSPL. The Government of India, Ministry of Communications & IT vide
its letter dated 28.01.2011 has not approved the above said sale of 49%
ITI''s equity stake in ISL to CTSPL, therefore the transfer of ITI
shares could not be effected. Now, the shareholders in the Joint
Venture are ITI (49%) and CTSPL (51%).
Quality policy of ITI is to deliver high quality, secure and reliable
products, services and solutions. 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 System.
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 QA has granted AIS (Approved Inspection Scheme) status for SIM
Cards. Localization activities continued during the year to procure
items such as cables, connectors and PCBs for GSM-BTS Project with
Alcatel Lucent approval and after approval from VDA and VRC. VDC, VRC,
Components Testing and Reliability Labs provide Qualifcation Approval
Standardizations of electronic components Vendor Development and Vendor
Rating after stringent evaluation in Testing in Reliability and
14. MAN POWER:
Employee strength at the end of the year 31st March, 2014 was 7311 out
of which 623 were female employees.
As on 31st March 2014, there were 1203 employees belonging to Scheduled
Castes and 67 belonging to Scheduled Tribes.
1 Chief Manager on permanent basis, 51 Contract Engineers & 34 Contract
Technicians were recruited during the year 2013-2014.
Employees belonging to Physically Challenged Persons numbering 102 and
Ex-servicemen category numbering 36 were on the rolls of the company as
at the end of the financial year.
15. HUMAN RESOURCE DEVELOPMENT:
Human Resource Development (HRD), keeping in view the initiatives taken
for organizational turnaround, diversifcation and the Company''s MOU
target on HRM Training for 2013-14, focused on imparting need based
training for executives and non-executives in the areas of New
Technology, Information Technology and General Management Development.
To keep pace with the advancements in Telecom & Information Technology,
training programmes on the topics like GPON, OFC Networks, Mobile
Communications, Cloud Computing, MLLN, Networking, Cyber Security,
etc., were organized. Management Development programmes focused on
Leadership, Finance, Human Resource, Vigilance, Quality, Personality
Development, etc., besides organizing a host of awareness programmes.
The MoU HRM Training performance indicators were to train the company
executives and non-executives and impart Risk Management training for
senior executives. Following the MoU targets, the company, for
knowledge / skill up-gradation of it''s manpower working at Corporate
office, Corporate marketing including Regional and sub offices,
Manufacturing plants, Network Systems Unit, located across the country,
has organized 49 exclusive training programmes covering 1134 executives
and 27 training programmes covering 711 non-executives achieving
totally 2868 training mandays. Besides, 45 need based awareness
training programmes have been organised in the areas of safety, health,
energy, environment management etc., by Plant HR (ED) Centres. 1184
personnel have been benefited by these programmes and the company
records 1369 training mandays on these awareness programmes. An
in-house Training on ''Risk Management'' was conducted for senior
executives. A group of 23 executives, consisting of DGMs and above,
participated in the training.
During the year, the company has sponsored 11 executives/non-executives
for external training through renowned organizations / training
In a nutshell the Company trained 2040 executives, 989 non-executives
achieving 2061 and 1176 training mandays respectively.
16. INDUSTRIAL RELATIONS:
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.
17. OFFICIAL LANGUAGE:
All Units/offices have established Check-points in their concerned
offices to make more efforts for effective Implementation of the Offcial
Language Policy, monitored by the Offcial Language Implementation
Committees constituted in every Unit/ office.
The Progress of Implementation of Offcial 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 Offcial Language amongst
our employees, offcials have been sent to Training Programme organized
by the government for imparting training in Hindi, Hindi typing and
Hindi Stenography as per our requirement. However, the Offcial
Language Cell of the different Units/ offices has 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 notifed 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 were organized in the HRD deptt. of
Corporate office, with the help of Dy. 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 the Deputy Director-OL, Offcial Language Department DoT,
New Delhi as well as Deputy Director (Implementation), Regional
Implementation office, Bangalore.
A Joint Hindi Fortnight Programme for Bangalore based PSUs /
Organisations between 16th September 2013 and 23rd October 2013 was
organized by TOLIC (Town Offcial Language Implementation Committee),
Bangalore and various types of competitions were arranged during this
18. VIGILANCE :
During the year, Vigilance Department functioned effectively and
efficiently being a part of Corporate Governance Structure. The prime
focus of the vigilance activities was to reduce the pendency of
complaints by expediting Investigation. Greater emphasis was laid on
preventive vigilance. CVC guidelines and Government policies in this
regard have been followed. To achieve the above objectives, periodical
inputs were given to the Management regarding review of Administrative
expenses, implementation of Rotational Transfers of Executives in
sensitive areas in the company.
To improve the transparency and effciency of the procedures, several
System Improvement Measures have been suggested to various departments.
Constant and continuous efforts have been made in this direction as a
part of Preventive Vigilance.
Logical conclusions on Vigilance Cases were arrived at and Special
emphasis was taken to reduce the Pendency of Complaints, MIS Reports
were sent to Statutory / Government Agencies like DoT-Vigilance and
The Company observed Vigilance awareness week from 28th October 2013 to
2nd November 2013 to 5th November 2013 at all Manufacturing Units
including its administrative offices, as well as Corporate office.
Periodical appraisals were also made to the Board of Directors on
The Vigilance department is endeavoring to lay far more emphasis on
preventive vigilance, scrutinizing the documents and conducting
surprise checks in sensitive departments. These actions had good impact
for creating awareness amongst Company Executives on Vigilance aspects
of Company Governance.
19. RIGHT TO INFORMATION:
The RTI requests have been on the increase constantly. During the year
2013-14, out of 254 RTI requests, information was provided against 203
requests, 17 requests were rejected and 1 request was transferred to
another Public Authority. The RTI returns on an quarterly basis have
been submitted to the Ministry for forwarding the same to Central
Information Commission and the same is published on our Company website
20. ENTERTAINMENT EXPENDITURE AND FOREIGN TRAVEL:
The expenditure on entertainment was NIL. Expenditure on offcial
travel abroad by the offcials of the Company amounted to Rs. 0.86 lakh
during the year.
21. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO:
Particulars with respect to Conservation of Energy, Technology
Absorption and Foreign Exchange Earnings and Outgo, required to be
disclosed under the Companies (Disclosure of particulars in the report
of Board of Directors) Rules, 1988 are annexed.
22. PARTICULARS OF EMPLOYEES:
The statement of particulars of employees drawing remuneration of Rs.
60.00 lakhs and above per annum or Rs. 5.00 lakhs and above per month are
required to be included in the Directors'' report as per Section 217(2A)
of the Companies Act, 1956, read with Companies (Particulars of
employees) Amendment Rules, 2011, are NIL for 2013-2014.
Pursuant to Section 619(2) of the Companies Act, 1956, M/s. Sundar
Srini & Sridhar, Chartered Accountants, Bangalore were appointed as
Statutory Auditors of the Company for the year 2013-2014 by the
Comptroller & Auditor General of India.
The following firms of Chartered Accountants were appointed
/re-appointed as Branch Auditors for different Plants of the Company
for the year 2013- 2014:- M/s. Nagendra Gupta & Co. Naini Plant,
M/s Mahadevan & Sivarajan, Palakkad Palakkad Plant
M/s S D M & Co, Srinagar Srinagar Plant
M/s Habibullah & Co., Gorakhpur Mankapur Plant
M/s Rajesh Srivastava & Associates, Lucknow Rae Bareli Plant
24. COST AUDITORS
Your Company has appointed M/s GNV & Associates, Bangalore, as Cost
Auditors 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
for the year 2013-14, with the approval of Board and Ministry of
25. BOARD OF DIRECTORS:
The following changes took place in the Directorate of your Company
since the last Report.
Shri R.K. Agarwal ceased to be a Director of the Company on 30th
November 2013 on attaining the age of superannuation. In accordance
with the requirements of the Companies Act, 1956, Shri P.K. Gupta,
Director-Marketing joined on 27th March 2014 and Shri S. Gopu,
Director-Human Resources joined on 16th April 2014 will retire by
rotation at this Annual General Meeting and eligible, offer themselves
for re- appointment.
Lt Gen Nitin Kohli joined the Board on 26th October
2013 will retire at this Annual General Meeting and eligible offer
himself for re-appointment as Director not liable to retire by
rotation. Shri R.K. Mishra joined as Director not liable to retire by
rotation on 25th July 2014 in place of Shri N. K. Joshi.
26. CORPORATE GOVERNANCE:
A report on Corporate Governance along with a Compliance Certifcate
from the Auditors as prescribed under the Listing Agreement with the
Stock Exchanges on which the Company''s shares are listed, is annexed to
27. MAJOR ORDERS RECEIVED AFTER 31ST MARCH 2014
ITI Ltd bags the Prestigious Orders against NFS Project
ITI Limited has bagged two advance purchase orders from BSNL amounting
to Rs. 2984 Crore.
These orders are part of Network For Spectrum (NFS) project for
establishment of Optical Fiber Network through out the country.
ITI is the only Central Public Sector Undertaking to bag two packages
out of seven packages for NFS tender against stiff competition from
multiple players. These are the biggest orders ITI has ever got by
competing in an open tender. These are the frst major orders received
after the approval of the revival package of ITI, by Cabinet Committee
on Economic Affairs (CCEA) and will open the doors for turning around
28. DIRECTORS'' RESPONSIBILITY STATEMENT:
Pursuant to the provisions under Section 217(2AA) of the Companies Act,
1956 your Directors state that:
(i) in the preparation of annual accounts, the applicable accounting
standards have been followed and that there were no material
(ii) the accounting policies adopted by the Company have been applied
consistently, judgments and estimates that are reasonable and prudent
have been made so as to give a true and fair view of the state of
affairs of the Company as at 31st March 2014 and Loss of the Company
for the period ended 31st March 2014.
(iii) they have taken proper and suffcient care for the maintenance of
adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;
(iv) the annual accounts have been prepared on a going concern basis.
ITI Limited Mankapur Unit has bagged the prestigious National Safety
Awards from the Ministry of Union Labour & Employment for the
performance year 2011 and adjudged winner in two categories of
''Accident Free Year'' and ''Lowest Frequency Rate'' for the performance
year 2011. ITI Ltd., Bangalore Unit is also adjudged runner up in
''Accident Free Year'' category for the same year. The awards were
received on 18th September 2013.
30. SALES PROMOTION
ITI Limited participated in SES 2013 Exhibition
ITI participated in the ''Strategic Electronics Summit: Defence &
Aerospace SES 2013''. Organized by Electronic Industries Association
of India (ELCINA) at HAL Convention Center, Bangalore on 2nd August
2013. ITI displayed SDR systems at the exhibition.
Dr. Ajay Kumar Joint Secretary, Department of Electronic & IT, Shri
M.N. Vidyashanker, Secretary IT, Govt of Karnataka, Defence Offcials
and other PSU Executives visited our stall.
ITI Limited participated in INDIA TELECOM 2013 EXHIBITION at Vigyan
Bhavan, New Delhi
ITI participated in India Telecom-2013 Exhibition which was held at
Vigyan Bhavan, New Delhi from 5th to 7th December 2013.
Dr. Manmohan Singh, Hon''ble Prime Minister of India, inaugurated the
India Telecom 2013 Exhibition. The theme of the event was Internet of
People to Internet of Things: Future of Communication. Inauguration at
the Exhibition Venue was done by Shri Kapil Sibal, Hon''ble Minister for
Communication and IT & Law and Justice. The other dignitaries present
at the ceremony with the Hon''ble Minister were Shri M.F. Farooqui,
Secretary, DoT; Smt. Rita Teaotia, Addl. Secretary, DoT; Shri
Umashankar, Joint Secretary, DoT.
Products Displayed at ITI Stall:
- Tablet PCs
- Field Telephones
- Decorative LED Lights
- Solar Lantern with Panel
- Biometric Hand Held Terminal (with charger)
- Note Counting Machine
- Fake Note Detector
NSIC Buyer Seller Meet-2013
ITI Mankapur has participated in the vendor development programme and
Buyer and Seller Meet- 2013 organized by NSIC, Kanpur at Feroz Gandhi
Inter College, Rae Bareli. The meet was held on May 15th & 16th, 2013.
ITI Mankapur has exhibited Note Counting Machine (both Desk Top and
Floor Model), Fake Note Detector, LED Decorative Lights (seven types),
LED Bulb and LED Tube lights. There was a very warm response from the
visitors to the stall who showed keen interest in our products.
Shri K.H. Muniyappa, Hon''ble Minister of Micro, Small and Medium
Enterprises, Govt. of India also visited our stall.
Observance of Vigilance Awareness Week - 2013 Celebration
Theme Promoting Good Governance Positive Contribution of Vigilance.
As per the directives of CVC, ITI observed the Vigilance Awareness Week
from 28th October 2013 to 2nd November 2013, in all the Production
Units as well as the Administrative offices of ITI Limited.
The Vigilance Awareness week started with administration of the pledge
on 28th October 2013 in all the Units and Administrative offices. At
Corporate office, Shri K. L. Dhingra, CMD, administered the Vigilance
pledge both in English and Hindi.
World Telecommunication and Information Society Day - 2013 celebrated
at ITI Bangalore Plant
World Telecommunication and Information Society day was celebrated on
17.05.2014 at ITI Bangalore Plant. The Theme for this year''s
celebration was BROAD BAND FOR SUSTAINABLE DEVELOPMENT. Shri S. Gopu,
Director (HR) welcomed the gathering.
Shri K. L. Dhingra, CMD, presided over the function and emphasized the
need of Broadband for sustainable development in his address.
The Chief Guest of the function, Shri D.M. Ezhil Buddhan, GM-Telecom,
Broadband Networks, BSNL delivered the Key note address.
National Productivity Week 2014
National productivity week was observed from 12th to 18th February 2014
at Bangalore plant. During the week, several Posters and Banners on
Productivity Week and related messages were displayed all over the
Factory premises. Essay and Slogan competitions were held on theme of
the Year : Lean management to enhance productivity. Valedictory
function of the Productivity week 2014 was held on 18th February 2014.
Public Sector Day Celebrations at Corporate office and Bangalore Plant
5th Public Sector Day was celebrated at ITI Corporate office on 16th
April 2014. Shri K.L. Dhingra, CMD, and Vice Chairman, SCOPE addressed
the gathering of all functional Directors and Senior officers of
Corporate office and explained the importance of the PSU day and the
contribution which Public Sector has made in the Economic Development
of the Country.
APEX Meeting Deliberates Key Issues
APEX Meeting was held on 27th & 28th May 2013 at Banaglore Plant to
deliberate key issues related to Company''s Revival, Orders, Financial
status, Production targets and Marketing challenges. Shri K.L. Dhingra,
CMD, Chaired the Meeting and called upon all the segments of ITI to
redouble their efforts in every feld to turn around the Company.
Functional Directors, Unit Heads, other Senior officers and
representatives from the Employees'' Union and officers'' Association of
all the Units participated in the deliberations.
DoT team visits ITI Ltd Bangalore
Smt. Rita A Teaotia, IAS, Additional Secretary (T), DoT visited ITI
Corporate office on 3rd July 2013, along with Shri V. Uma Shankar, IAS,
Joint Secretary (T) DoT, Shri N.K. Joshi, DDG (SU) and Shri R.K.
Kaushik Director (PSU IV). Smt. Rita A Teaotia, planted a sapling in
the garden area of Corporate office in the presence of DoT Team and Shri
K.L. Dhingra, CMD ITI Limited.
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 cooperation in future.
Your Directors also wish to express their gratitude for the cooperation
and assistance extended by BSNL 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 Member 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
cooperation 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. L. Dhingra)
Chairman and Managing Director
Date: 13th August 2014