ITI Directors Report, ITI Reports by Directors

Directors Report	Year End : Mar '11

The Members ITI Limited The Directors have pleasure in presenting the 61st Annual Report of the Company together with Audited Accounts and Auditors'' Report thereon for the year ended 31st March 2011. ITI Limited has reported a net loss of Rs.358 Crs in the financial year 2010-11 which is the lowest ever loss (without considering grants) reported by the Company in the last nine financial years. The net loss have come down by 22% from a net loss of Rs.459 Crs. reported in the financial year2009-10. PERFORMANCE: The Company was having MoU target of Rs.8000 Crs. (sales) for the year 2010-11. Against this MoU target, the Company has achieved Sales and Production of Rs.2139 Crs. and Rs.2052 Crs. during the year 2010-11 as against Rs.4660 Crs. and Rs.4630 Crs. respectively during the previous year 2009-10. The decline in overall performance was due to paucity of orders from its major customers i.e. BSNL & MTNL. The Company''s loss has come down from Rs.459 Crs. for the previous year 2009-10 to Rs.358 Crs. for the year 2010-11. Contributionfortheyear2010-11 isRs.160Crs.as compared to Rs.309 Crs. forthe year2009-10. The Company had entered the year2010-11 with an Order Book position ofRs.2078 Crs. and Advance Purchase Order ofRs. 349 Crs. During the year 2010-2011, the Company received fresh order of Rs. 864 Crs. only. The Company has signed MoU ofRs. 5300 Crs. (Level-3) for the year 2011-12 with projected gross margin of Rs. 138 Crs. and Net Profit/loss at par. HIGHLIGHTS: The turnoverfortheyear2010-11 is mainly constituted from GSM-WZ, GSM-SZ, G-PoN, STM, DWDM, ADSL-CPE and 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 (NPR57) project forthe country. Company received order for execution of Restructured Accelerated Power Development Reforms Program (RAPDRP) of value Rs. 307 Crs. from Tamil Nadu Electricity Board (TNEB). PRODUCTION The product wise details of performance achieved by the Company during the year 2010-11 as compared to the previous year is as given below: Rs. Crs. Sl. No. Product/Projects 2010�11 2009 - 10 1 OCB - 283 CORE incl I/C 3.36 19.86 2 OCB - 283 CSN 0.45 7.26 4 SSTP/IPTAX 1.77 101.38 5 C-DOT PRODUCTS 4.38 6.02 6 DIVERSIFIED PRODUCTS 32.84 8.45 7 OPTIC FIBRE EQUIPMENTS 45.67 191.96 8 SATCOM 0.00 2.22 9 PCM MuX 14.34 9.46 10 DWDM 56.96 8.25 11 MLLN 2.41 27.36 12 EPBT/CLIP PHONES 8.11 1.49 13 GSM � WZ(incl. BTS, RTT & 909.09 1139.79 Shelter) 14 GSM � MTNL 19.37 109.91 15 GSM� SZ 593.08 2003.36 16 WLL � INFRA 14.96 409.46 17 IFWT - - 18 ADSL� CPE 37.47 19.78 19 Misc. Products 16.93 17.79 20 DEFENCE/ASCON 54.77 149.72 21 AMC BUSINESS 45.22 66.43 22 USIM/SIM CARDS 6.09 5.84 23 MNID 11.46 9.00 24 SMPS 14.94 16.14 25 G-PoN 119.98 240.14 26 ROs / CCO/IT 125.28 89.25 TOTAL ( including ED) 2138.93 4660.32 NEW PRODUCTS: National Population Registration (NPR) project: ITI is one of the three Public Sector Undertakings short listed by RGI (Registrar General of India) for providing Multi Purpose National ID cards. The job involves collection of citizen''s data including biometrics followed by issue of ID cards. Recently ITI had received an order to the tune of Rs.750 Crs. from RGI for the above project. It is expected that this project will give a substantial turnover in the coming 2 to 3 years with good value addition. G-PON: ITI is currently manufacturing G-PON equipments at Raebareli Plant in technical collaboration with M/s Alphion Corporation, USA. ITI is the first Indian Company to secure TSEC Certification for this product. Orders received from BSNL have already been executed and further orders are expected. Recently, ITI has also entered into Non- Disclosure Agreement (NDA) with C-DOT to manufacture C-DOT developed G-PON equipments. Next Generation Networks: Next Generation Network (NGN) is a Soft Switch based Telecommunication network capable of providing services, viz., Voice, Data & Video by encapsulating them into packets. Manufacturing of IP TAX equipment - Class IV, Trunk automatic exchange and Class V, local exchange, based on Soft Switch architecture is planned. BSNL and MTNL''s plans to migrate theirTDM switches to NGN in orderto provide new services to customers will boost the NGN market. Carrier Ethernet: Carrier Ethernet is the next generation transport technology for high bandwidth packet access for internet and business communication. ITI is in the process of finalising a technology partner for this product to address anticipated tender from BSNL. The defence project of Network for Spectrum is also expected to have a huge requirement for Carrier Ethernet switches. HSDPA (High Speed Data Packet Access): With the successful auction of 3G spectrum, 3G networks are getting deployed and hence there is a huge demand for customer premises equipments like 3G HSDPA Data Cards. ITI is planning to address various opportunities coming from this product. Non-Telecom products: (A) Solar power equipments for rural BTS sites: Manufacturing of Solar power equipments for rural BTS sites is under consideration which will help for better penetration of mobile communication into rural areas where availability of power is a major constraint. ITI has successfully demonstrated its capability in this area and is going ahead for upgrading its facility to meet demand. (B) LED Lighting Products: ITI Mankapur plant is planning to take up the manufacturing of LED Lighting products. Huge market potential is available for this product considering the benefits of very low power consumption and longerlife of LED Lighting systems. TECHNOLOGYALLIANCES: ITI has technology alliances with the leading Technology providers for the following product range: Product Technology provider GSM-BTS Alcatel-Lucent, France G-PON Alphion, USA CDMA Infrastructure equipments. ZTE, China NGN (Class 4) Huawei, China NGN (Class 5) ZTE, China STM 1,4,16 Tejas, India STM 64 Xalted, India DWDM ZTE, China Antenna for GSM / CDMA Mobi, China Microwave equipments SAF Tehnika, Latvia CLI phones Pramod Telecom, India ADSL �CPEs SEM India MLLN Tellabs, Finland SSTP Tekelec, USA Radio Modem Shyam Telecom, India SIM cards WatchData, China USIM Cards Bartronics EXPORT: The exports of the Company for the year 2010-2011 was NIL. FINANCE: The performance of the Company for the year 2010-2011 as comparedtothe previous year is as follows: (Rs. in Crs.) SI Particulars 2010-2011 2009-2010 NO. i. Sales including services 2139 4660 ii. Value of Production 2052 4630 iii. Loss before tax 358 459 iv. Loss after tax 358 459 v. Financing Expenses 80 119 vi. Depreciation 22 24 vii. Capital Employed (Net Fixed Assts Net Current Assets) 2142* 2292* viii. R&D Expenditure 19 24 *Including Revaluation Reserves DIVIDEND: As your Company has incurred a loss, the Directors are not in a position to recommend any dividend for the year 2010-2011. HIGHLIGHTSOFTHEPRODUCTIONPLANTS BANGALOREPLANT: Bangalore Plant achieved a turnover of Rs88.03 Crs. (with ED). supply consisting of WLL-CDMA Infra worth Rs.14.96 Crs., Defense equipment of Rs. 9.01 Crs,ADSL-CPEs worth Rs.24.96 Crs., PCM MUX, etc. Worth Rs.14.34 Crs., Switching equipment, OCB-CSN / C-DoT / Microwave items, AMC & repair etc. Worth Rs.18.12 Crs. and Data Centre''s turnover worth Rs.6.64 Crs. MANKAPURPLANT: Mankapur Plant has achieved a turnover of Rs.132.40 Crs. (with ED) during the year. The Plant supplied 1236 Nos. GSM (BTS) and 983 Nos. Expansion Kits worth Rs.113.33 Crs. equipments, C-DoT products worth Rs.4.38 Crs.,ADSL- CPE worth Rs.12.51 Crs. and Banking product worth Rs.2.18 Crs. The Plant has bagged 16th National SafetyAward and 3rd National Energy ConservationAward. This is the first Plant to obtain ISO 9001: 2008 Certificate. The Plant has bagged National Safety Award for lower average frequency rate of accident Scheme-1 (Winner) & longest accident free period Scheme-2 (Runner) from Ministry of Labour & Employment for Performance year 2008 conferred on 27th September, 2010. RAEBARELIPLANT: Rae Bareli Plant has achieved a turnover of Rs.235.06 Crs. (with ED) during the year. The Plant supplied 1135 Nos. GSM (BTS) 500 TRU Expansion and20nos. Shelter worth Rs.78.64 Crs. equipments and SMPS worth Rs.14.94 Crs. Further, the Plant achieved Rs.119.98 Crs. from the supply of G-PoN equipments and Rs.21.50 Crs. from the sale of BSNL SIM Cards. The Plant has bagged National Safety Award for lower average frequency rate of accident Scheme-1 (Runner) & longest accident free period Scheme-2 (Winner) from Ministry of Labour & Employment for Performance year 2008 conferred on 27th September 2010. NAINIPLANT: Naini Plant has achieved a turnover of Rs.108.81 Crs. (with ED) during the year. The Supplies consists of STM products worth Rs.45.67 Crs, DWDM equipment worth Rs.56.95 Crs, and CLI Phones and miscellaneous products worth Rs.6.19 Crs. PALAKKADPLANT: Palakkad Plant has achieved a turnover of Rs. 27.27 Crs. (with ED) during the year. The Plant supplied MLLN equipment worth Rs. 2.41 Crs, OCB-283 CORE worth Rs.3.36 Crs., SIM/USIM Cards worth Rs. 6.09 Crs., MNID Project worth Rs.11.46 Crs. and Misc/ Contract Manufacturing worth Rs. 3.95 Crs. ITI was selected as one of the PSU consortium member along with M/s BEL and M/s ECIL by RGI for the NPR Project. This Plant is executing the Project which includes Data Collection, Biometrics, Manufacturing and Personalization of Smart Cards under NPR57 project for Rs.17 Crores of coastal states population. Palakkad Plant achieved an award from National Safety Council, Kerala Chapter and Runner up award for Outstanding Safety Performance in industrial safety by achieving the lowest frequency rate of accidents. The Plant is also awarded from Dept. of Factories & Boilers, Govt. of Kerala, Second Prize for Outstanding Safety Performance in Industrial Safety among the category of very Large Factories (Engineering). Awarded for achieving highest growth in Central Excise RevenueinCalicut Circle during the year 2010-11. SRINAGARPLANT: Srinagar Plant has achieved a turnover of Rs. 2.18 Crs. (with ED) during the year mainly on supply of CLI Phones and services. NETWORKSYSTEMSUNIT: Network Systems Unit has achieved a turnover of Rs.90.32 Crs. (with ED) mainly comprising of Annual Maintenance Contract for OCB exchanges worth Rs.41.91 Crs. for BSNL& MTNL and AMC for ASCON worth Rs.42.77 Crs. The Unit has undertaken ASCON expansion work worth Rs.2.33 Crs. and other external plant works of Rs.3.31 Crs. REGIONALOFFICES&CCO: Regional Offices and Customer Care Organization achieved a turnover of Rs.125.27 Crs. consisting of Rs.70.47 Crs of ITI and other traded products, Rs. 22.33 Crs. of Services and Rs.6.23 Crs. towards CCO and Rs.26.24 Crs. towards IT Projects. ROs have implemented SWAN (State WideArea Network) successfully on BOOT Basis. GSM Projects: The Company rolled out Cellular mobile GSM Network against 9 ML Order (Turn-key) in BSNL WZ worth Rs.717.12 Crs. And Rs.19.37 Crs against Orders from MTNL, Mumbai. Similarly, GSM Network for BSNL(SZ) was rolled out worth ofRs.593.08 Crs. during the year FUTUREOUTLOOK: 1. Wireless Broadband Equipment for rural: In line with the Government''s mission to provide Broadband connectivity to the rural masses under Bharat Nirman, ITI is planning to enter this area by taking up manufacturing, installation and commissioning of the equipments 2. Network for Spectrum (NFS): This project is allocated to BSNL by Ministry of Communications for setting up of acommunication backbone network in lieu of release of spectrum by Defence. ITI is anticipating substantial order from BSNL for laying of Optical fiber cables for this project as well as supply and installation of transport equipment. 3. IT Projects: All the State Governments are aggressively 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 through its Regional offices is already implementing e- Tendering in various Govt. Organization. 4. Data Center: ITI has already set up Tier 3 state-of-the- art world class Data center at Bangalore on Private- Public Partnership model. ITI is also exploring setting up of own Data center to encash huge market potential in the area of secured data storage. 5. Solar panel: ITI has plans to diversify into manufacture of Green energy products like Solar power systems. ITI is contemplating to be a significant contributor to the Government''s ambitious Solar Mission (Jawaharlal Nehru National Solar mission) with an objective of making India as global leader in the manufacture of Solar power equipments. 6. Biogas project: ITI Bangalore plant is planning to take up manufacture of equipments for this project. The project is a low cost solution to source energy in the form of cooking gas or electricity from kitchen waste or bio waste. 7. Contract Manufacturing Activities: ITI has given renewed thrust to take up Contract Manufacturing Activities and is approaching premier Public Sector Undertakings in this regard. ITI Palakkad plant has already tied up with VSSC, Trivandrum to manufacture PCBs to their requirement. ITI Bangalore Plant is doing work for BHEL& HALon contract manufacturing model to enhance capacity utilization. CONTRIBUTIONTOEXCHEQUER: During the year, your Company has contributed Rs.136.67 Crs to the exchequer towards duties and taxes. PUBLICDEPOSITS: Value of deposits held by the Company was NIL. Deposits aggregating to Rs. 0.24 Cr. had matured for payment, but were not claimed on due dates. REVIEW OF ACCOUNTS BY INDIAN AUDIT AND ACCOUNTSDEPARTMENT: The Accounts for the year 2010-11 under review by the Indian Audit and Accounts Department is appended. JOINTVENTURES: 1. INDIASATCOMLIMITED India Satcom Limited (ISL)is a Joint Venture Company incorporated on 5th October, 1987 by ITI, Unit Trust of India (UTI) and Equatorial Pacific International Company (EPIC). Both EPIC and UTI had sold their respective stakes in ISL to M/s Chris Tech Systems Pvt. Ltd. (CTSPL) and ITI had 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%). 2. ITI COMMUNICATIONS PTE. LIMITED, SINGAPORE: In the year December 1992, a Joint Venture was formed by ITI with M/s Valvas and M/s ISL in the name of M/s ITI Communications Pte Ltd. Singapore. As ITIC was running into losses, Board of Directors in its 314th Meeting held during 1999 decided to close this venture through winding upprocess. We have received a communication from the Official Receiver, Singapore that the name of ITI Communications, Singapore has been struck off. QUALITY: ITI has a well-established Quality Assurance [QA] wing in every Production Unit. Each Unit QA is responsible for Quality of Products and services rolling out of the Unit. The Units are well equipped with a variety of Environmental test facilities. Test systems and instruments for carrying out elaborate tests for conducting Reliability Evaluation on all products to ensure customer satisfaction. The Quality Policy of ITI is to provide Competitive and Reliable Products, Solutions and Services. ITI is achieving this through sound Quality Management Systems. Corporate Quality provides guidance and support to all Units for Training. Implementation, Surveillance and Recertification of ISO 9001:2008, Quality Management System(QMS) and ISO 14001:2004 Environmental Management System (EMS). Quality related MOU targets and Quality related issues like AIS, SPC, Six Sigma, 5S, TQM Quality Cost etc. All the Six manufacturing Plants of the Company stand accredited and upgraded to International ISO 9001:2008 Standards of Quality Management as on date. Keeping in tune with the Global concern for Environmental Management, the Company has gone in for ISO 14001:2004 EMS Certification for all of the Plants. ITI has bagged prestigious Global Quality Award, International Quality Summit Award in Gold Category in a World Congress organized by Business Initiative Directives (BID) Madrid, Spain in Telecom field worldwide. This is for the first time in the history of ITI that our quality is recognized best in Telecom field. ITI Palakkad Plant is granted AIS (Approved Inspection Scheme) status by BSNL QA for SIM Cards. Localisation 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 VDC & VRC of R&D, Bangalore. CAG,VDC,VRC, Standards, Component Testing and Reliability Labs provide Qualification Approval, Standardization of Electronic components, Vendor Development and Vendor Rating after stringent evaluation in Testing in Reliability and Environmental laboratory. MANPOWER Employee Strength at the end of the year 31st March 2011 was 10616 when compared to previous year''s strength 11737. As on 31.03.2011, there were 1842 employees belonging to Scheduled Castes and 96 belonging to Scheduled Tribes employees, thus constituting 17.35 % and 0.90 % respectively of the total strength of employees on the rolls of the Company. 2 Technicians belonging to SC were recruited on contract basis during the year 2010-2011. Employees belonging to Ex-servicemen category numbering 56 and Physically Challenged Persons numbering 138 were on the rolls of the Company as at the end of the financial year. Promotions exercise for Senior Management officers was carried out during the year 2010-2011 and the eligible officers were considered for promotion to the next higher level. HUMANRESOURCEDEVELOPMENT: During 2010-11, the company, continuing its robust approach to achieve turnaround, besides focus on Technology and Business, greater focus was on the Skill upgradation in the areas of Telecom, Information Technology and Organization Development at all levels in the organization. HR-ED Centres at Corporate and Plant levels were committed to build and mobilize internal expertise for designing / developing technological and management development programmes and in this direction the Centres have notably succeeded by achieving an ''outstanding rating'' against the Company MOU target on criteria - Skill upgradation. Primarily, to keep in pace with and indigenize the advancements in Telecom and Information technologies in- house training programmes were conducted on various topics of core technologies viz., 3-G & 4-G, GPON, GEPON, WIMAX, NGN, MPLS / VPN. Intensive in-depth training programme on Computer Networking was conducted both for Northern and Southern Plants. Conducting of e-Procurement training programmes to facilitate implementation of company-wide e-tendering is a milestone in the company. Also number of training programmes to enhance the operation skills on Computers were conducted for the benefit of all employees. 729 employees have been imparted training in the areas of Telecom Technology and similarly 730 employees have been trained in Information Technology areas achieving 948.5 and 1695 training mandays respectively. Management Development programmes were conducted in areas of HR, Finance, Materials Management, Quality, and Vigilance Management to mention a few. 1283 employees have been trained achieving nearly 1495.5 training mandays through these MDPs. General Awareness programmes on topics like health care, safety, resource / energy management etc., benefited 587 participants. Company has nominated nearly 37 executives for external training with renowned institutions. In a nutshell, during the year, the company has trained over 3366 employees and achieved 4575 training mandays in 131 training programmes. Corporate HR (ED) has set a milestone employing Real Time Video Conferencing methodology in conducting high end technology programmes like NGN, Transmission Technology etc., covering all the Plants targeting more than 150-200 participants in a stretch. It needs no mention that Company has gained considerable opportunity costs through employing high-tech methodology, developing and engaging internal resource persons and minimizing sponsoring nominations for external training programmes. INDUSTRIALRELATIONS 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 flow and helped to meet the Company''s objective. OFFICIALLANGUAGE: 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 our Corporate Office as well as in our 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 asper our requirement. However, 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 GazetteofIndiaasperOLRules10(2)&(4),1976. Official Language Cell was given an appreciation letter by the Director-OL. Official Language Department DoT, New Delhi. For Bangalore based Units / Offices, a short-term 5 days Intensive Hindi Workshop Programme were organized in Corporate Office, HR(ED) Conference Hall w.e.f. 31.01.2011 to 04.02.2011 with the help of Home Ministry, Official Language Deptt., Hindi Teaching Scheme, Bangalore and more than 40 Officers / Non-Officers participated & they were trained during this training programme. A Joint Hindi Fortnight Programme for Bangalore based PSUs / Organisations between 04.10.2010 & 29.10.2010 was organized by TOLIC, 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. On the TOLIC Meeting & valedictory function held on 07.12.2010, the President, TOLIC were given the cash prizes and certificate to the wining participants. Hindi Fortnight was celebrated and Hindi Workshops were organised for encouraging progressive use of Hindi during 2010-11. Company''s website has been made bilingual (i.e. English and Hindi). VIGILANCE: During the year, Vigilance Department functioned as an effective part of Management. The main focus of the vigilance activities was to sensitize the employees towards transparent, ethical and professional approach towards their duties and responsibilities. Greater emphasis was laid on preventive vigilance. CVC guidelines and Government policies in this regard have been followed. To achieve the above objectives, the following steps were taken to increase transparency in dealing with vendors / suppliers as under: a Tenders and Notice Inviting Tenders are invariably put on website along with Government of India website. b The procedures for vendor registration are also put on company website. The company observes Vigilance awareness week from 25th October to 1st November at all units of ITI Limited including its administrative offices as well as corporate Office. The Vigilance department gives more importance to preventive vigilance, scrutinizes the documents and conducted surprise checks in sensitive departments. These actions had good impact for creating a corruption free environment. RIGHTTOINFORMATION: The Right to Information Act, 2005 has enabled all the citizens to seek information from a Public Authority. Since introduction of the Act, a mechanism has been drawn to process all requests received by Corporate Office/ Units under the Act. The Units and Regional offices have designated PIOs/APIOs with CPIO, Appellate authority and Transparency Officer at the Corporate Office. The main objective has been to ensure total transparency. The requests are processed and information is being provided to the Appellants within the stipulated time frame and within the provisions of the RTI Act. The details are also put on the web site www.itiltd-india.com. During the year 2010-11, 321 requests were processed against which 262 were accepted and 27 were rejected while the remaining 30 are under process with 2 requests being transferred to other Public Authorities. The Annual Return are submitted to the Ministry every year for forwarding to the Central information Commission. AWARDS: Rae Bareli and Mankapur units of the Company have won National Safety Award for performance year 2008. Mankapur unit also got Prime Minister''s Shram Award which was presented by Minister of Labour and Employment on September 15, 2010 to Smt. Mamta Upadhyay. Palakkad Unit won Safety Award for its outstanding safety performance in industrial safety in the category of very large factories. ITI Limited has bagged the Top Telecom Turnkey Company of the year 2011 award from voice and Data, an influential Indian Communications magazine from CyberMedia. Shri K.L. Dhingra, Chairman and Managing Director, ITI Limited received the award from Shri R. Chandrashekhar, IAS, Secretary, Ministry of Communications & IT and Chairman, Telecom Commission at a function in New Delhi on July 27, 2011. SALESPROMOTION: 1. ITI participated in the prestigious Exhibition and Conference, India Telecom 2010 held in New Delhi from December 9-11, 2010. Department of Telecommunications (DoT). The theme of event was ''Broadband for All''. 2. ITI participated in the 19th Convergence India 2011 International Exhibition and Conference organized by Exhibitions India Group from March 24-26, 2011 at Pragati Maidan, New Delhi by putting up a display over an area of 56 sqm. The theme of the event was ''NextGen Applications & Services: Empowering a Billion Lives'' EVENTS: 1. ITI signed Memorandum of Understanding (MoU) with the Telecom Commission for the year 2011-12 on March 16, 2011. 2. ISO Certification for ITI Rae Bareli has been upgraded to New Version ISO 9001; 2008 by certification body NVTQC Bangalore. 3. ITI Ltd. has felicitated Asiad Gold Medalist Ms Sudha Singh, who is daughter of an employee of Rae Bareli Unit, at a function held in Rae Bareli by presenting a cash award of Rs. 5,00,000.00. 4. ITI and Centre for Development of Telemetics (C-DoT) � the premier telecom technology center of India, the two wings of Department of Telecommunications signed an agreement on December 11, 2010 to evaluate, discuss and negotiate contractual relationship concerning the Transfer of Technology for C-DoT. 5. Shri Chewing Phunsog (IAS), Chairman, PESB and Shri V.S. Jain, Member, PESB and former Chairman of steel Authority of India (SAIL) visited ITI''s Bangalore Plant and Corporate OfficeonFebruary5,2011. 6. Shri S. Ramaratnam, Dy. Director, VSSC inaugurated the Space Electronics Fabrication Centre at ITI Palakkad. 7. Shri Beni Prasad Verma, Hon''ble Minister of State for Steel (Independent Charge) has visited ITI Limited, Mankapur from March4-5, 2011. ENTERTAINMENT EXPENDITURE AND FOREIGN TRAVEL: The expenditure on entertainment was NIL. Expenditure on official travel abroad by the officials of the Company amounted to NIL during the year. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS ANDOUTGO: 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. PARTICULARSOFEMPLOYEES: 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 2010-2011. AUDITORS: Pursuant to Section 619(2) of the Companies Act, 1956, M/s. Karra & Company, Chartered Accountants, Chennai were appointed as Statutory Auditors of the Company for the year 2010-2011 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 2010-2011:- M/s.S.R.Gupta&Co.,Naini Plant, Allahabad M/s Varier&Associates, Palakkad Plant M/s RashidAssociates, Srinagar Plant M/s Habibullah&Co., Gorakhpur, Mankapur Plant M/sS.C.Singh&Co., Rae Bareli Plant BOARDOFDIRECTORS: The following changes took place in the Directorate of your Company since the last Report. On attaining the age of superannuation, Shri B.P.Gupta, Director �Finance was relieved of his duties from the post on 31.01.2011. Shri Ravi Khandelwal has assumed the charge of Director- Finance w.e.f 05.03.2011. Consequent on attaining age of superannuation, Shri K.K. Khurana, Director -HR is relieved of his duties from the post on 31.03.2011. Shri Ravi Khandelwal, Director �Finance vide DoT''s letter dated 25.05.2011 entrusted with additional charge of the post of Director- HR. On completion of tenure, Shri A.S. Bansal, Shri A.K. Jain, Shri V.H. Ron and Shri Keshav Saran, Independent Directors were relieved from the duties from July, 2011. Consequent on attaining age of superannuation, ShriA.K. Srivastava, Government Director ceased to be Director of the Company w.e.f. 31.07.2011. Shri N.K. Srivastava, Sr. DDG (TEC) vide letter No. A-12023/5/89-OC/PSA dated 01.08.2011 has been appointed as Government Nominee Directorin place of ShriA.K. Srivastava. In accordance with the requirements of the Companies Act, 1956, Shri T.S. Narayanasami, Independent Director, Dr. S. K. Chaudhuri, Independent Director and Shri R.K. Agarwal, Director -Marketing will retire by rotation at this Annual General Meeting and eligible, offer themselves for re-appointment. Your Directors wish to place on record the appreciation of the services rendered by Shri B.P. Gupta, Shri K.K. Khurana, Shri A.S. Bansal, Shri A.K. Jain, Shri V.H. Ron , Shri Keshav Saran and Shri A.K. Srivastava during their tenure. CORPORATEGOVERNANCE: A report on Corporate Governance along with a Compliance Certificate from the Auditors as prescribed under the Listing Agreement with the Stock Exchanges on which the Company''s shares are listed, is annexed to this report. DIRECTORS''RESPONSIBILITYSTATEMENT: Pursuant to the provisions under Section 217(2AA) of the CompaniesAct, 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 departures. (ii) the accounting policies adoptedby the Company have been applied consistently, judgments and estimates that are reasonable and prudent have been madeso as to give a true and fair view of the state of affairs of the Company as at 31st March 2011 and Loss of the Company for the period ended 31.3.2011. (iii) they have taken proper and sufficient 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. ACKNOWLEDGEMENT: 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 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 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 Sd/- (K. L. Dhingra) Chairman and Managing Director Place : Bangalore Date : 12.08.2011

Source : Dion Global Solutions Limited

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