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Download Annual Report PDF Format 2013 | 2011 | 2010
Directors Report Year End : Mar '13    « Mar 12
To The Members of ITI Limited
 
 The Directors have pleasure in presenting the 63rd Annual Report of the
 Company together with Audited Accounts and Auditors'' Report thereon
 for the year ended 31st March 2013.
 
 PERFORMANCE:
 
 ITI Limited has reported a net loss of Rs. 182.06 Cr in the financial
 year 2012-13 which is the lowest ever loss reported by the Company in
 the last eleven financial years. The net loss has come down by 50.77%
 from a net loss of Rs. 369.80 Cr. reported in the financial year
 2011-12.
 
 The Company was having Moll target of Rs. 4430 Cr. (sales) for the year
 2012-13. Against this Moll target, the Company has achieved Sales
 (including ED & Service Tax) and Production of Rs. 921.04 Cr.  and Rs.
 910.16 Cr. during the year 2012-13 as against Rs. 993.12 Cr. and Rs.
 995.96 Cr. respectively during the previous year 2011-12. Due to
 reduced market share of telecom PSUs, major orders could not be
 finalized and hence resulted in reduced sales.
 
 Despite the reduced Sales turnover, contribution in the year 2012-13
 has increased to Rs.187.27 Cr. as compared to Rs. 180.51 Cr. in the
 year 2011-12.
 
 During the year 2012-13, the Company received approximately fresh
 orders of Rs. 1104 Cr only.
 
 The Company has signed MoU of Rs. 4500 Cr. (Level-3) for the year
 2013-14 with projected gross margin of Rs.130 Cr. and Net Profit of Rs.
 1.00 Cr.
 
 As part of diversification, all the Units have taken various
 initiatives to enhance production.
 
 Bangalore Plant has entered into a TOT for manufacturing and supply of
 SDR (Software Defined Radio Products) it is expected to be in demand
 for defence forces in future.
 
 Mankapur Unit has developed LED bulbs of 5W to replace 60W filament
 bulbs, LED streetlights (40W-excellent replacement of 250W sodium vapor
 lamp), LED streetlight (75W) and LED based tube lights (18W) for
 domestic/business/industrial applications. These LED based products
 will go a long way towards energy saving.
 
 Naini Unit established a new line for manufacturing of High Wattage
 Solar Panels of capacity 5 MW.
 
 Palakkad Unit has established inroads in the Defence manufacturing area
 by supplying to NPOL, HVF Avadi, etc. The Plant has opened a separate
 manufacturing area for meeting the requirements of production of Space
 research related products and have supplied to VSSC both bare and
 assembled PCBs.
 
 HIGHLIGHTS:
 
 - The turnover for the year 2012-13 is mainly constituted by GSM,
 G-PoN, Defence, IT solutions Projects and services sector for NPR and
 SECC projects.
 
 - 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 for the country.
 
 PRODUCTION
 
 The product-wise details of performance achieved by the Company during
 the year 2012-13 as compared to the previous year is as given below:
 
                                                      (Rs. in Crores)
 
 SI.
 No. Product/Project                          2012-13         2011-12 
 
 1   Radio Modem                                    -           17.50
 
 2   SSTP/IPTAX                                     -           12.28
 
 3   C-DOT Products                              1.61            4.57
 
 4   Diversified Products /                     10.61            4.15
     Cont.Mfg.
 
 5   Solar Panel                                22.76            6.87
 
 6   PCM MUX                                     0.52            3.84
 
 7   DWDM                                           -            9.21
 
 8   MLLN                                        9.77               -
 
 9   GSM - WZ (Incl. BTS,                       55.11           32.70
     RTT, Shelter & AMC)
 
 10  GSM-MTNL                                    1.02           18.44
 
 11  GSM - SZ                                    1.75           13.64
 
 12  WLL-INFRA                                                 -14.88
 
 13  ADSL-CPE                                    2.89            5.13
 
 14  Misc. Products &                           24.78           34.37
     Services
 
 15  Defence / ASCON                            55.35           52.20
 
 16  OCB AMC Business                           37.74           47.14
 
 17  SIM / USIM / SMART                         20.09            0.28 
     Cards
 
 18  NPR/SECC Projects                         371.37          438.07
    (Data)
 
 19  SMPS                                        1.65            3.76
 
 20  G-PoN                                      16.29           24.24
 
 21  ROs/CCO/IT                                198.23          197.89
 
 22  Data Centre                                15.44           10.69
 
     Total Service Tax                          74.06           71.03
 
     TOTAL (Incl. ED & Ser. Tax)               921.04          993.12
 
 New Products:
 
 - National ID Card manufacturing :
 
 ITI is already a part of the consortium of PSUs along with BEL and ECIL
 for executing the National Population Register (NPR) project under the
 Ministry of Home Affairs. The next phase of the project is to
 manufacture national identity cards for all citizens in the country
 (above 18 years age). The project is expected to be awarded to the
 consortium during this year and is expected to be valued more than Rs.
 1200 Crore (for ITI) in a period of three years.  Also, there will be
 continuous requirement of these cards beyond this period even though
 volume would be lower. The cards are planned to be manufactured at
 Palakkad plant which is already engaged in manufacturing this type card
 in its plant.
 
 - Software Defined Radio (SDR):
 
 Software Defined Radio cater to single radio covering HF, VHF and UHF
 range for voice and low bit-rate voice and data applications. Defence
 sector plans to replace existing radios namely combat net radios with
 SDR. These radios have Electronic counter Measures (ECCM) features to
 avoid jamming. ITI has entered into an Moll with a technology partner
 and signed Transfer of Technology (TOT) agreement with the party to
 start component level manufacturing of this product in ITI. Tenders are
 awaited from Defence sector for this product.
 
 - 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
 (or, Class IV switches) and local exchanges (or, class V switches),
 based on Soft Switch architecture is planned. BSNL and MTNL''s plans
 to migrate their TDM switches to NGN in order to 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. The
 projects like NFS (Network for Spectrum), are expected to have a huge
 requirement for Carrier Ethernet switches. ITI is in the process of
 identifying a technology partner for the execution of anticipated
 orders from the customer.
 
 - G-PON (Gigabit Passive Optical Network):
 
 G-PON is a promising transmission technology in terms of its low
 operating expenses, low power requirements and ease of network
 deployment. Huge requirements are anticipated from projects like
 National Optical Fiber Network (NOFN) and Network for Spectrum (NFS)
 and others. ITI has already been a major supplier of this product to
 BSNL and MTNL using the imported technology. ITI has now entered into a
 ToT agreement with C-DOT and plans are afoot to take up manufacture of
 G-PON equipments from component level at Raebareli plant. This will
 boost indigenous manufacturing in India.
 
 - MLLN (Managed Leased Line Networks):
 
 ITI has successfully rolled out countrywide MLLN network for BSNL in
 technical collaboration with M/s Tellabs. During the year 2012-13, ITI
 received expansion order for MLLN project to the tune of Rs. 82 crore.
 
 EXPORT:
 
 The exports of the Company for the year 2012-2013 were NIL.
 
 FINANCE:
 
 The performance of the Company for the year 2012- 2013 as compared to
 the previous year is as follows:
 
                                                         (Rs. in Crs.)
 
 SI     Particulars                           2012-2013    2011-2012 
 No.
 
 i.     Sales including                             921          993
        services
 
 ii.    Value of                                    910          996
        Production
 
 iii.   Loss before tax                             182          370
 
 iv.    Loss after tax                              182          370
 
 v.     Financing                                    89           85 
        Expenses
 
 vi.    Depreciation                                 18           21
 
 vii.   Capital Employed                           1778         1895
       (Net Fixed Assts   Net Current Assets)
 
 viii.  R&D Expenditure                              18           21
 
 DIVIDEND:
 
 As your Company has incurred a loss, the Directors are not in a
 position to recommend any dividend for the year 2012-2013.
 
 HIGHLIGHTS:
 
 The performance value for 2012-13 is mainly from National Population
 Register (NPR), GSM Projects, GPoN, Solar Panel, IT Project and Service
 Contracts through ROs, Defence and Civil Networks.
 
 The Company is executing Turnkey Project of Registrar General of India
 (RGI) for creation of Multi Purpose National Identification Card under
 National Population Register, AMC and Misc. services.
 
 HIGHLIGHTS OF THE PRODUCTION PLANTS AND SERVICE UNITS:
 
 BANGALORE PLANT:
 
 Bangalore Plant achieved a performance of Rs. 30.62 Crores. This
 performance consist of supply of Defence equipment ofRs. 6.27 Cr, Data
 Centre services worth Rs. 18.05 Cr., AMC, repair and Miscellaneous
 products worth Rs. 6.30 Cr,
 
 MANKAPUR PLANT:
 
 Mankapur Plant achieved a performance of Rs. 6.35 Crores. The Plant has
 dispatched 40K Nos. of ADSL- CPE worth Rs. 2.89 Cr., C-DoT Products
 worth Rs.1.61 Crs. and Banking/Miscellaneous products worth Rs. 1.81
 Crs.
 
 During the year, the Plant has bagged 2 Nos.  National Safety Award -
 Performance Year 2010 - WINNER for lowest average accident frequency
 rate and Performance Year 2010 - RUNNER for accident free year.
 
 ITI Limited, Mankapur has done a yeoman''s service in maintaining a
 balanced environment and ecology since its establishment in 1983 in the
 Gonda District of Uttar Pradesh. Since inception, the Unit is
 continuously making efforts to upgrade the environment.
 
 RAE BARELI PLANT:
 
 Rae Bareli Plant achieved a performance of Rs. 42.76 Crores. The Plant
 has dispatched 31,9K Nos. of ONT of GPoN equipment worth Rs. 16.29 Cr.,
 Rs. 1.65 Cr. from the supply of SMPS equipments, Rs. 24.82 Cr worth of
 GSM Franchise business.
 
 During the year, the Plant has bagged National Safety Award for
 outstanding performance in Industrial Safety during performance year
 2010 for accident free year.
 
 NAINI PLANT:
 
 Naini Plant achieved a performance of Rs. 22.91 Crores.  The Plant has
 dispatched 117 Nos. of Solar Panel equipment worth Rs. 22.76 Cr. and
 Misc. / Contract Manufacturing worth of Rs. 0.15 Cr.
 
 PALAKKAD PLANT:
 
 Palakkad Plant achieved a performance of Rs. 449.33 Crores. The Plant
 has captured Bio- metric data collection/data entry against NPR/ SECC
 Projects worth Rs. 409.98 Cr., supplied 20.14 million Nos. of Smart
 Cards for NPR Project worth Rs. 26.54 Cr, Supply of MLLN & AMC Project
 worth Rs.11.07 Cr. and Misc. / Contract Manufacturing worth Rs. 1.74
 Cr.
 
 In the Industrial Safety front, Plant was runners 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:
 
 Srinagar Plant achieved a performance of Rs. 0.01 Crores against
 services.
 
 NETWORK SYSTEMS UNIT:
 
 Network Systems Unit achieved a performance of Rs. 98.01 Crores. The
 performance mainly comprises of Annual Maintenance Contract for fixed
 line OCB exchanges worth Rs. 42.05 Cr. for BSNL & MTNL, AMC for ASCON
 worth Rs. 54.69 Cr. and Misc./ contract jobs worth of Rs. 1.27 Cr.
 
 REGIONAL OFFICES:
 
 Regional Offices and its Customer Care Organization (CCO) achieved a
 performance of Rs. 206.53 Crores.  This performance consists of t 75.89
 Crs. supplies of ITI''s Mfg. products and other traded products, Rs.
 45.23 Crs. of Services and Rs. 5.77 Crs. by various CCOs and Rs. 79.64
 Cr. towards IT Projects.
 
 Highlights of Regional Offices Performance:
 
 a) Performance of ROs for the FY 2012-13 is Rs.206.53 Cr against
 Rs.206.82 Cr in the FY 2011-12.
 
 b) Sundry Debtor realization for 2012-13 is Rs. 120.63 cr Realisation
 for FY 2011-12 was 170.49 Cr.
 
 - Total order bagged in 2012-13 is Rs. 209.52 Crs.  against the order
 bagged of Rs. 122.86 Crs. in 2011-12.
 
 Rs. 453.74 Crs. orders on hand as on 01.04.2013.  Order value on hand
 as on 01-04.2012 was Rs. 457.20 Crs.
 
 New Projects taken up in 2012-13:
 
 - CCTNS Bihar - RO Lucknow (Rs. 68 Crs)
 
 - CCTNS Nagaland - RO Kolkata (Rs. 9.6 Crs)
 
 - APDRP Puducherry - RO Chennai (Rs. 12.8 Crs)
 
 - In the State of Assam - NPR (estimated work of Rs. 35 Crs.) being
 executed by RO (Kolkata)
 
 Austerity Measures:
 
 - Closure of 8 Area Offices in last three years.
 
 - Cost reduction in office rent by shifting office to a smaller area.
 
 - Fixed expenditure reduced by surrendering the rented premises &
 operating from residence.
 
 GSM Projects:
 
 The Company rolled out GSM Network worth of t 63.38 Cr. (with Service
 Tax) against BSNL orders in West Zone & South Zone and Rs. 1.15 Cr
 against Orders of MTNL, Mumbai.
 
 CONSERVATION OF ENERGY:
 
 The Company has undertaken following energy saving measures:
 
 1.  Recommendations of Bureau of Energy Efficiency have been
 implemented from time to time.
 
 2.  Optimum usage of Plant & Utilities
 
 3.  Monitoring of power factor at regular interval.
 
 4.  Replacement of old high capacity equipments with multiple optimum
 size capacity energy efficient ones.
 
 5.  Replaced conventional electro-magnetic ballast fluorescent fitting
 with electronic ballast fluorescent tri-phosphate lamp fitting.
 
 6.  Offloading of Central Air Conditioning plant in winter season.
 
 7.  Use of timer control devices in street lighting, etc.
 
 8.  Diverting the load on single transformer to reduce no-load losses.
 
 9.  Training programmes / competitions among employees to create
 awareness on energy conservation.
 
 New Product & New Technology Initiatives:
 
 Mankapur Unit has developed LED bulbs of 5W to replace 60W filament
 bulbs, LED streetlights (40W-excellent replacement of 250W sodium vapor
 lamp), LED streetlight (75W) and LED based tubelights (18W) for
 domestic applications. These LED based products will go a long way
 towards energy savings.
 
 Future Outlook: 
 
 - Telecom projects like NOFN and NFS:
 
 The Government funded projects like National Optical Fiber Network
 (NOFN) and Network for Spectrum (NFS) require many types of telecom
 equipments like GPON, DWDM, Carrier Ethernet, DSL equipments etc. in
 huge volumes. Some of equipments required in these projects have been
 designed by C-DOT, with whom ITI has tie-up for technology transfer.
 For other products also, ITI has tied up with technology partners for
 technology transfer to ITI with an intention of taking up manufacturing
 of these products.
 
 - Core Telecom Products:
 
 ITI is pursuing on addressing the core telecom market like GSM, Long
 Term Evolution (LTE), and Managed Leased Line Network (MLLN) etc.
 
 The LTE technology is expected to be taking over in the next decade ITI
 is planning to take up manufacturing of these products.
 
 - Defence projects:
 
 ITI is looking at Defence market as a great opportunity for its
 business. ITI has already supplied telecom equipment like Telephones,
 Ruggedized Telephone Exchanges, Transmission equipments, VSAT etc. to
 the Defence sector. ITI is the leader in supplying encryption
 equipments for the secured communication in the Defence networks 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 Fuses, equipments for Army Wide Area Network
 (AWAN Phase II) etc. ITI is discussing with DRDO for setting up of SBIJ
 in two units of ITI One major project which has been now launched by
 Indian Army is ASCON Phase IV. Earlier three phases of this project
 have been executed by ITI successfully and ITI is hopeful of getting
 order for this project also
 
 - Solar Project:
 
 There has been special emphasis by the Government of I ndia to
 implement the renewable energy sources including solar to overcome the
 environmental hazards and meeting the growing energy needs. ITI is
 having requisite expertise and experience for implementing Solar
 solutions in its Naini plant. ITI has already 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 specially in rural areas where power supply position is not good.
 ITI Naini is planning to augment the solar panel manufacturing
 infrastructure in its plant
 
 - 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 expected from National Highway Authority, State
 Governments and Municipal Corporations, CPWDs/ PWDs, Railways, Hotels
 and Hospital Industry.
 
 - Data Center:
 
 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. Big scope exists in the market of Data center
 considering the immense potential in the Government sector to store
 data for projects of national importance like NPR, UIDAI and other
 Projects/Schemes envisaged by Government agencies & PSUs. In line with
 the business opportunities, ITI is planning to build another Data
 center as main and disaster recovery sites.
 
 - IT Projects:
 
 All 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 has already 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, Crime & Criminal Tracking Network System (CCTNS) for
 Bihar and Nagaland. e-Tendering is another project being executed by
 ITI. ITI plans to pursue more such IT projects in future.
 
 CONTRIBUTION TO EXCHEQUER:
 
 During the year, your Company has contributed Rs. 46.12 Crs to the
 exchequer towards duties and taxes.
 
 PUBLIC DEPOSITS:
 
 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 THE COMP- TROLLER AND AUDITOR GENERAL OF INDIA:
 
 The comments on the accounts for the year 2012-13 by the comptroller
 and Auditor General of India appended.
 
 JOINT VENTURES :
 
 1.  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
 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%).
 
 In the 408th Board meeting held on 6.08 2013, it has been decided that
 ISL will sign a MOU with NBCC for joint development of the land of ISL
 for commercial purpose, after obtaining approval from Govt., and after
 taking necessary approval from statutory bodies. This will go a long
 way in the revival of the ISL.
 
 QUALITY:
 
 In all the production units of ITI Ltd., the Quality Assurance (QA)
 wings have been well established.  The QA wings are responsible for
 Quality of products & services rolling out of units. A variety of
 Environmental test facilities are in force in all the Units. Test
 systems and instruments for carrying out elaborate tests for conducting
 Reliability Evaluation on all products to ensure customer satisfaction.
 This is achieved by sound and effective Quality Management Systems.
 The Quality Policy of ITI is to ''provide Competitive and Reliable
 Products, Solutions and Services.
 
 All the five manufacturing Plants at Bangalore, Palakkad, Mankapur, Rae
 Bareli & Naini of the Company have been accredited with and
 periodically upgraded to International ISO 9001:2008 Standards of
 Quality Management as on date.
 
 Keeping in tune with the Global concern for Environmental Management,
 all the plants of the Company have gone in for ISO 14001:2004 EMS
 certification for all of the Plants and are periodically being
 upgraded.
 
 The 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)
 are provided by Corporate Quality Department. Quality related MOU
 targets and Quality related issues like AIS, SPC, Six Sigma, 5S, TQM
 Quality Cost etc., have been achieved.
 
 AIS (Approved Inspection Scheme) status has been granted 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, Standardisation 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 2013 was 8516
 compared to previous year''s strength 9512.
 
 As on 31.03.2013, there were 1429 employees belonging to Scheduled
 Castes and 79 belonging to Scheduled Tribes, thus constituting 16% and
 0.92% respectively of the total strength of employees on the rolls of
 the Company. 10 Contract Engineers belonging to SC category and 3
 belonging ST category, 4 Technicians belonging to SC and none belonging
 to ST were recruited on contract basis during the year 2012-2013.
 
 Employees belonging to Ex-servicemen category numbering 37 and
 Physically Challenged Persons numbering 108 were on the rolls of the
 Company as at the end of the financial year.
 
 HUMAN RESOURCES DEVELOPMENT:
 
 During the year 2012-13 the HR (ED) initiated several programmes,
 keeping in view, the continued organizational turnaround and capacity
 building efforts and the MoU HRM Training targets, focussed on employee
 skill development through various need-based in-house training
 programmes on Management Development, New/Advanced Technology and
 Multi-skilling. A special emphasis was given to developing leadership
 skills amongst middle and senior executives. Besides, the company
 sponsored Senior Executives (GM''s and above) for advanced training
 programmes that provide platform for exploring the organizational
 growth opportunities.
 
 As part of Organization Development initiatives, for the first time in
 the company, ''Mentor-Mentee System'' has been successfully developed
 and implemented. To begin with around 30 Executives have been trained
 as mentors and around 50 officials have been selected as Mentees.
 During the year, the company successfully carried out Employee
 Engagement Survey. Quality Circles have also been revived in the
 company.
 
 On HRM Training, in fulfillment of the MoU parameters, in the General
 Management area 115 in- house training programmes were organized
 covering 3835 employees which include training programmes on Stress
 Management, Medicare etc., 8 training programmes were conducted on
 Leadership covering 246 employees. As an exclusive initiative to
 develop multi-skills amongst non-executives, 11 programmes were
 organized covering 182 non-executives as against the target of
 conducting 10 Multi-skill training programmes. Similarly, on
 New/Advanced Technology, 11 programmes were conducted covering 263
 employees as against the target of five training programmes. In total,
 the company has organized 161 programmes as against the target of 120
 training programmes. Also, the company has sponsored 16 nominations to
 renowned external training institutions which included nominations of
 four Senior Executives (GM''s and above).
 
 In total, during the year, 4532 employees have been trained achieving
 more than 6100 training mandays. In terms of percentage of number of
 training programmes organized, the company has achieved 120% on New/
 Advanced Technology, 160% on Leadership, 115% on MDPs and 110% on
 Multi-skilling. With respect to the target of 0.4 training mandays per
 employee per year, the company achieved 0.64 by imparting training to a
 total of 4532 employees achieving 6100 training mandays. Similarly,
 against the target training budget of Rs. 3.21 lakhs - 0.008% of the
 manpower cost - the company has spent Rs. 3.72 lakhs i.e., 0.0092% of
 the manpower cost.
 
 During the year, against every Moll HRM training performance indicator
 the company''s achievements surpassed the targets.
 
 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 flow and helped to
 meet the Company''s objective.
 
 OFFICIAL LANGUAGE:
 
 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 as per our requirement.  However, the Official
 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 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 Hindi Unicode training
 programme were organized in the HRD deptt. of Corporate Office, with
 the help of Senior Hindi Officer, NAL, 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 Dy. Director-OL, Official Language Department DoT, New
 Delhi as well as Dy.  Director (Implementation), Regional
 Implementation Office, Bangalore.
 
 A Joint Hindi Fortnight Programme for Bangalore based PSUs /
 Organisations between 03.10.2012 & 31.10.2012 was organized by TOLIC
 (Town Office 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.  On the TOLIC Meeting &
 valedictory function held on 22.01.2013, the President, TOLIC gave 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 2012-13. Company''s
 website has been made bilingual (i.e. English and Hindi).
 
 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 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 strictly followed. To achieve the above objectives, periodical
 inputs were given to the Management regarding review of Administrative
 expenses, review of Procedure being followed for selection of
 technology Partners, implementation of Rotational Transfers of
 Executives in Sensitive Areas in the Company.
 
 To improve the transparency and efficiency 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
 CVC.
 
 The Company observed Vigilance awareness week from 31st October 2012 to
 5th November 2012 at all Manufacturing Units including its
 administrative offices, as well as Corporate Office.  Open-house
 discussions were held with Middle Management Executives of the Company,
 with specific emphasis on streamlining the System and Procedures in
 Procurement and recording the Reasons for proposing / taking requisite
 Commercial /Administrative decisions. The main thrust was to enhance
 the Vigilance Awareness across the Company and to sensitize employees
 in work areas and their role in preventing corruption. This also
 provided a platform for the participants to interact, seek more
 information and clarify doubts on vigilance concepts and functions.
 Emphasis was also laid on leveraging IT,creating awareness for
 transparency and accountability.
 
 Management facilitated up-gradation of Computer Infrastructure in
 Corporate Vigilance Department and suitable deployment of manpower in
 Vigilance department across ITI offices. Management established another
 Vigilance wing at RO office at Lucknow, to monitor vigilance functions
 at Northern ROs and other North-lndia based Commercial wings of the
 Company.  Impetus was given to review the pendency of Cases
 periodically to expedite logical conclusion of the pending cases.
 Periodical apprisals were also made to the Board of Directors on
 Vigilance Matters.
 
 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.
 
 RIGHT TO INFORMATION:
 
 As a part of imparting training on RTI Act, an in- house training
 programme was conducted in two batches. The first phase was held at
 Mankapur on 25th & 26th February 2013 for Northern Units and a few
 regional offices which was attended by a good number of participants.
 The second phase of the programme for Southern Units/Regional office
 was held on 21st & 22nd March 2013 at Bangalore. Both the programme
 were conducted using the internal faculty of Corporate office.
 
 The programme was aimed at providing in-depth knowledge of the RTI Act.
 The training was well received by the participants with interactive
 sessions and lively discussions on several case studies.  The programme
 was rated Excellent by all the participants.
 
 Ever since the introduction of RTI Act, the awareness among citizens
 has been on the increase and during the year 2012-13 RTI cell received
 and processed 204 requests.
 
 AWARDS:
 
 ITI Bags National Safety Awards from Ministry of Labour & Employment
 
 ITI Ltd. has bagged the prestigious ''National Safety Awards'' from the
 Ministry of Labour & Employment for the performance year2010. Shri K.
 L. Dhingra, CMD, ITI Ltd, received the awards from Shri Mallikarjun
 Kharge, Horrble Union Minister for Labour & Employment at a function in
 New Delhi on September 17, 2012.
 
 ITI''s Mankapur Plant, Gonda Dist. Uttar Pradesh, emerged for
 outstanding performance in Industrial Safety Awards as winner during
 the Performance Year 2010 based on the Lowest Average Frequency Rate
 and Runner-Up in Accident Free Year.
 
 SALES PROMOTION:
 
 ITI Limited participated in DEFCOM India 2012 Exhibition 111 Limited
 participated in DEFCOM India 2012 held during 8th & 9th November, 2012
 at Manekshaw Centre, Delhi. The posters depicting latest products of
 ITI and the products for which ITI has tie-ups with OEMs were
 displayed.
 
 In line with the theme of the exhibition, Tactical Communication
 System, the following products were showcased :
 
 1) NGN BEU (New Generation Bulk Encryption Unit)
 
 2) SDR ( Software Defined Radio)
 
 3) HF Radio Set
 
 On the first day i.e. 8th November 2012, CMD of ITI shared the dais
 with Shri Vivek Rae, Secretary MSME, Ad. Secretary (A), Lt. Gen. S.P.
 Kochar, AVSM, S.M., VSM, ADC, SO-in-C, Maj, Gen.  Johar, ADG-TAC and
 other top officials of telecom companies and presented his views on
 ICTEC : Challenges and Opportunities.
 
 ITI participated in India Telecom-2012 Exhibition
 
 ITI participated in India Telecom-2012 Exhibition which was held at
 Pragathi Maidan, New Delhi from 13th to 15th December 2012.
 
 Products Displayed:
 
 1) Hand Held Terminal
 
 2) Charge Control Unit (CCU)
 
 3) Solar Panel
 
 4) Solar Structure
 
 5) Multi Channel NGN BEU
 
 Shri Milind Deora, Hon ble Minister of State for Communications and
 Information Technology, inaugurated ITI stall in the presence of Shri
 Kapil Sibal, Hon''ble Union Minister for Communications and
 Information Technology and Shri R. Chandrasekhar, Secretary, DoT along
 with Shri K.K. Gupta, Director Production.
 
 EVENTS:
 
 Secretary DPE Visits ITI
 
 Shri O.P. RAWAT, Secretary, Department of Public Enterprises, Ministry
 of Heavy Industries and Public Enterprises, Gol, has visited ITI
 Corporate Office on 07th February 2013 and discussed with Shri K.L.
 Dhingra, Chairman and Managing Director, Shri R.K. Agarwal, Director
 Marketing, Shri K.K.  Gupta, Director Production, Shri Ravi Khandelwal,
 Director Finance and other Management Officials regarding revival of
 ITI Limited.
 
 National Productivity Week-2013
 
 National Productivity week was observed from 12th to 18th February 2013
 at Bangalore Plant.  The Productivity week 2013 was inaugurated at ITI
 Bangalore Plant on 12th February 2013 by Lt.Col.  (Retd) A.M. Uniyal,
 General Manager, Bangalore Plant. The Chief Guest at the function Shri
 C. Narendra, Senior Deputy Director, National Productivity Council,
 Bangalore, presented his key note address and highlighted the
 importance of Productivity and Innovation for Sustainable
 Development.
 
 Shri K.L. Dhingra, CMD, ITI Ltd. addressed the gathering and shared his
 views on the subject.
 
 ITI Ltd, has bagged the prestigious ''National Safety Awards'' from the
 Ministry of Labour & Employment for the performance year2010. Shri K,
 L. Dhingra, CMD, ITI Ltd, received the awards from Shri Mallikarjun
 Kharge, Hon ble Union Minister for Labour & Employment at a function in
 New Delhi on September 17, 2012.
 
 ITI''s Mankapur Plant, Gonda Dist. Uttar Pradesh, emerged for
 outstanding performance in Industrial Safety Awards as winner during
 the Performance Year 2010 based on the Lowest Average Frequency Rate
 and Runner-Up in Accident Free Year.
 
 SALES PROMOTION:
 
 ITI Limited participated in DEFCOM India 2012 Exhibition 111 Limited
 participated in DEFCOM India 2012 held during 8th & 9th November, 2012
 at Manekshaw Centre, Delhi- The posters depicting latest products of
 ITI and the products for which ITI has tie-ups with OEMs were
 displayed.
 
 In line with the theme of the exhibition, Tactical Communication
 System, the following products were showcased :
 
 1) NGN BEU (New Generation Bulk Encryption Unit)
 
 2) SDR ( Software Defined Radio)
 
 3) HF Radio Set
 
 On the first day i.e. 8th November 2012., CMD of ITI shared the dais
 with Shri Vivek Rae, Secretary MSME, Ad. Secretary (A), Lt. Gen. S.P.
 Kochar, AVSM, S.M., VSM, ADC, SO-in-C, Maj. Gen.  Johar, ADG-TAC and
 other top officials of telecom companies and presented his views on
 ICTEC : Challenges and Opportunities.
 
 ITI participated in India Telecom-2012 Exhibition
 
 ITI participated in India Telecom-2012 Exhibition which was held at
 Pragathi Maidan, New Delhi from 13th to 15th December 2012.
 
 Products Displayed:
 
 1) Hand Held Terminal
 
 2) Charge Control Unit (CCU)
 
 3) Solar Panel
 
 4) Solar Structure
 
 5) Multi Channel NGN BEU
 
 Shri Milind Deora, Hon''ble Minister of State for Communications and
 Information Technology, inaugurated ITI stall in the presence of Shri
 Kapil Sibal, Hon''ble Union Minister for Communications and
 Information Technology and Shri R. Chandrasekhar, Secretary, DoT along
 with Shri K.K. Gupta, Director Production.
 
 EVENTS:
 
 Secretary DPE Visits ITI
 
 Shri O.P. RAWAT, Secretary, Department of Public Enterprises, Ministry
 of Heavy Industries and Public Enterprises, Gol, has visited ITI
 Corporate Office on 07th February 2013 and discussed with Shri K.L.
 Dhingra, Chairman and Managing Director, Shri R.K. Agarwal, Director
 Marketing, Shri K.K.  Gupta, Director Production, Shri Ravi Khandelwal,
 Director Finance and other Management Officials regarding revival of
 ITI Limited.
 
 National Productivity Week-2013
 
 National Productivity week was observed from 12th to 18th February 2013
 at Bangalore Plant.  The Productivity week 2013 was inaugurated at ITI
 Bangalore Plant on 12th February 2013 by Lt.Col.  (Retd) A.M. Uniyal,
 General Manager, Bangalore Plant. The Chief Guest at the function Shri
 C. Narendra, Senior Deputy Director, National Productivity Council,
 Bangalore, presented his key note address and highlighted the
 importance of Productivity and Innovation for Sustainable
 Development.
 
 Shri K.L. Dhingra, CMD, ITI Ltd. addressed the gathering and shared his
 views on the subject.
 
 Inauguration of New Solar Module Production Plant at ITI, Naini
 
 Shri K.L. Dhingra, CMD, ITI Ltd. inaugurated High Wattage SPV (Solar
 Photo Voltaic) Module Manufacturing Production Plant on 9th March, 2013
 at ITI Naini. He appreciated the exemplary efforts and initiative taken
 by Naini Plant. He also congratulated Shri P.K. Gupta, GM, Naini & his
 team for new leap towards diversification.  He expressed that this
 project will contribute towards National Solar Mission in a big way &
 bring long term sustainable business to ITI.
 
 On this occasion he also addressed senior officers, the representatives
 of Workers ''Union & Officers'' Association and stressed upon the need
 of identification of more such diversified products for turn around of
 ITI Limited.
 
 ITI MoU Concentrates on Revival Plans
 
 ITI has signed a Memorandum of Understanding (MoU) with the Government
 for the year 2013-14.  Shri R. Chandrasekhar, Secretary, DoT and
 Chairman, Telecom Commission and Shri K.L. Dhingra, CMD, ITI Ltd.
 signed the MoU on 22nd March 2013 at New Delhi. The thrust areas of the
 MoU include pursuing growth opportunities in telecom sector and
 exploiting diversified business such as renewable energy. The MoU
 envisages that ITI concentrate on revival plans with due approval of
 the Government agencies.
 
 World Telecommunication and Information Day Celebrations at Bangalore
 Plant
 
 World Telecommunication and Information Society Day was celebrated at
 Bangalore Plant and the theme selected by International Telecom Union
 (ITU) for the year 2013 is ICTs and Improving Road Safety.
 
 As part of the programme, a combined valedictory function was held at
 Old R & D Conference Hall.  Shri Sridhar Rao, AGM ( B ) welcomed the
 gathering.  The Chief Guest Shri Bhaskar Rao, IPS, IGP (Anti- Terrorist
 Cell), delivered the keynote address on the subject and enlightened the
 employees about the revival of KSRTC when he was the Commissioner of
 Transport Dept. & Road Safety, Government of Karnataka. Shri
 K.L.Dhingra, CMD, ITI Ltd., presided over the function and delivered
 presentations address.
 
 Function was attended by other dignitaries are Shri R.K. Agarwal,
 Director Marketing, Shri K.K. Gupta, Director Production, Shri
 R.Venkataraman, CVO and other Senior Officers, Office bearers of OA,
 Union and all other employees participated in the function.
 
 ENTERTAINMENT EXPENDITURE AND FOREIGN TRAVEL:
 
 The expenditure on entertainment was NIL.  Expenditure on official
 travel abroad by the officials of the Company amounted to Rs. 0.74 lakh
 during the year.
 
 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.
 
 PARTICULARS OF EMPLOYEES:
 
 The statement of particulars of employees drawing remuneration ofRs.
 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 2012-13.
 
 AUDITORS:
 
 Pursuant to Section 619(2) of the Companies Act, 1956, M/s. Badari,
 Madhusudhan & Srinivasan, Chartered Accountants, Bangalore were
 appointed as Statutory Auditors of the Company for the year 2012-13 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 2012-13:-
 
 M/s Nagendra Gupta S. R. Gupta & Co.,
 
 Naini Plant, Allahabad
 
 M/s Thrivikraman & Co.,
 
 Palakkad, Palakkad Plant
 
 M/s Samriti & Associates,
 
 Jammu, Srinagar Plant
 
 M/s Habibullah & Co.,
 
 Gorakhpur, Mankapur Plant
 
 M/s S.C. Singh & Co.,
 
 Rae Bareli, Rae Bareli Plant
 
 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 2012-13, with the approval of Board and Ministry of
 Corporate Affairs.
 
 BOARD OF DIRECTORS:
 
 The following changes took place in the Directorate of your Company
 since the last Report.
 
 In accordance with the requirements of the Companies Act, 1956, Shri
 Dhirendra Singh, Independent Director, Prof. M.J.Zarabi, Independent
 Director joined on 03.10.2012 and Prof. Ramesh Bhat, Independent
 Director joined on 03.01.2013 will retire by rotation at this Annual
 General Meeting and being eligible, offer themselves for
 re-appointment.
 
 On completion of tenure, Shri T.S. Narayanasami, Prof.M. Balakrishnan
 and Dr. S.K. Chaudhuri, Independent Directors were relieved from the
 duties from March, 2013.
 
 CORPORATE GOVERNANCE:
 
 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'' 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
 departures.
 
 (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 2013 and Loss of the Company
 for the period ended 31.3.2013.
 
 (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.
 
 Board of Directors also express 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
 
                                        (K. L. Dhingra)
 
 Place: Bangalore                      Chairman and
 
 Date: 29.05.2013                      Managing Director
Source : Dion Global Solutions Limited
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