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Tamil Nadu Telecommunications Ltd.

BSE: 523419 Sector: Engineering
NSE: TNTELE ISIN Code: INE141D01018
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VOLUME 751
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52-Week low 1.13
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Sell Price 1.28
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Tamil Nadu Telecommunications Ltd. (TNTELE) - Director Report

Company director report

To

The Members

Your Directors present the Twenty Ninth Annual Report together with the AuditedAccounts of the Company for the year ended 31st March 2017.

Financial Results

(Rs. in Lakhs)
2016-17 2015-16
Revenue from operations 267.01 470.80
Other Income (Net) 0.79 0.89
Total Revenue 267.80 471.69
Total Expenditure 991.65 1195.25
Finance Charges 776.72 815.86
Extraordinary / Exceptional items 47.41 0.47
Gross Profit / (Loss) after interest before
Depreciation & Tax (1547.98) (1539.89)
Depreciation and Amortization Expense 31.41 31.64
Provision for Taxation / Deferred Tax - -
Net Profit / (Loss) (1579.39) (1571.53)
Other Comprehensive Income /(Loss):Item that
will not be reclassified to Profit and Loss (47.48) (9.53)
Total Comprehensive Income/(Loss) for
the Period (1626.87) (1581.06)

The net loss after Tax is Rs. (1626.87) lakhs against net loss of Rs. (1581.06) lakhsmade during the previous year.

Review of Operations

During the year under review the company's sales and other income was Rs.267.80 lakhs.The entire revenue is achieved from the Optical Fiber Unit. Overall the market conditionof OFC was not encouraging during this year also and the order booking status was not asexpected.

You are aware that BIFR has issued a Sanctioned Scheme to the Company on 21.07.2010. Asper the Sanctioned Scheme the Board of Directors had issued 15432700 equity shares ofRs.10 each to M/s. Telecommunications Consultants India Limited (TCIL) 4247500 equityshares of Rs.10 each to State Bank of India 2070600 equity shares of Rs.10 each toAndhra Bank and 1265200 equity shares of Rs.10 each to Punjab National Bank byconverting part of the loans into equity during 2010-11. The shares in physical formatwere issued on 14.09.2010. Out of the bridge loan of Rs.12.50 crores from TCIL as per theSanctioned Scheme of BIFR the Company had availed Rs.11.66 crores during 2010-11 towardsOTS to consortium bankers and towards the Tamilnadu Government land in possession of theCompany. With the above restructuring the net worth became positive during 2010-11.However from 2010-11 onwards the desired results as projected in the Scheme couldn't beachieved due to OFC market conditions. The OFC market from 2010-11 was not as projectedand the order booking status was not encouraging. You are aware that the big order fromBSNL during 2010-11 also could not materialize due to non availability of one of thecritical Raw Material Nylon 12. Due to this the Net worth has again eroded during 2011-12and became negative. The year under review was also not encouraging due to lack ofrequired level of executable orders. Hence this has again resulted in accumulation oflosses and thereby the Net worth has further eroded. Your Company is looking forward forgetting better improvements in the diversification front in future.

There are huge requirement of OFC in the country. Hence the company is hopeful ofimprovement in OFC market conditions. However hectic competition is prevailing in thisfield. Since the OFC market is picking up and the Company is also exploring successfuldiversification project a Modified Draft Rehabilitation Scheme shall be prepared atappropriate time for submission to BIFR/NCLT through the Monitoring Agency. Once thedecision of lead promoter TCIL/DOT is conveyed.

Market Scenario and Outlook

The demand for optical fiber is growing in a rapid scale due to development ofinfrastructure in smart city project and digital India promoted by Govt. of India.

The Smart City Mission (SCM) of the Govt. of India plans to accommodate the massiveurbanization that is expected in the future-modernising the existing mid-sized cities.According to former president of India Shri.APJ. Abdul Kalam 400 million fiber KMinfrastructures is required in order to realize the dream of digital India.

As per Government initiative for smart cities development of trunk and internalinfrastructure for 100 smart cities is planned which would require a large amount ofrequirement of optical fiber for seamless secure connectivity. The fiber optic networkwill run as a metro loop around the city and wireless access to the underlying fibernetwork will be provided by WiFi / RF Mesh/ Cellular/ Mobile technologies.

Also the Government initiatives a proposal to connect all Gram Panchayats with Opticalfibre and the demand for fiber is increasing day by day. Around 205 KMs each GramPanchayat in the Country will be connected through optical fiber cable (OFC).

Electricity Companies also extensively use optical fiber cables for monitoring andcontrol purposes. Some of the companies like Sterlite Technologies and ZTT have investedin setting up production of OPGW manufacturing assembly cable which has bigger potentialand demand in Indian market.

The optic fiber industry at home is also poised for a period of significant growth andthe demand is expected to surpass the current manufacturing facility in the months tocome. This favorable trend is expected to continue at least over the next few years. Thecompany continues to take all initiatives to retain the competitive edge and be in aposition to meet the requirements of the market. The medium / long-term prospects willaugur well for the company. The company continues to emphasize on cost cutting throughenhanced productivity reduction in logistics and other costs. The company will continueits efforts to further prune all its fixed costs including administrative anddiscretionary overheads.

The Company is also exploring the possibilities for diversification in the relatedareas like manufacturing and supply of FTTH components manufacturer of optical cable OFCaccessories tablet PCs etc. Though the Company has successfully executed assemblingvalidation and supply of Tablet PCs during 2012-13 under TCIL's CSR project could not getfurther orders. For implementation of any of this successful venture after feasibilitystudy the vacant land available with the Company will be utilized for this project byhaving tie up arrangement with suitable Joint Venture partner. Efforts are being taken tostudy the market and to identify a suitable JV partner to proceed further. Efforts arebeing taken through TIDCO also. On finalizing a successful project action for executingin big volume will be considered after taking all relevant approvals.

Cautionary Statement

Statements in the Directors' Report and Management Discussion & Analysis containforward looking statements. Actual results performances or achievements may varymaterially from those expressed or implied depending upon economic conditions Governmentpolicies subsequent developments and other incidental factors.

Risk & Concern

The industry is facing challenging cost pressures as the cost of major raw materialsare varying because the market is volatile. The variations in exchange rate fluctuationare also a threat towards cost of production. The competition within OFC business isbecoming fierce due to emerging new technologies and frequent new product introductions inOptical fiber products which command competitive prices and preference in the market. Themarket price of cables is also varying due to competition.

Directors

In accordance with Sec.152 (6) and (7) of the Companies Act 2013 read with Articles79 & 80 of the Articles of Association of the company Shri. B. Elangovan (DIN00133452) and Shri.M.S. Shanmugam (DIN 02475286) will retire from the Directorship of thecompany by rotation and being eligible offers themselves for re-appointment.

Directors' Responsibility Statement

As required under Section 134(5) of the Companies Act 2013 the Directors of theCompany hereby state and confirm that –a) In the preparation of the annual accountsthe applicable accounting standards had been followed. b) They have selected suchaccounting policies and applied them consistently and made judgments and estimates thatare reasonable and prudent so as to give a true and fair view of the state of affairs ofthe Company as at 31st March 2017 and the loss of the Company for the yearended on that date. c) They have taken proper and sufficient care for the maintenance ofadequate accounting records in accordance with the provisions of this Act for safeguardingthe assets of the company and for preventing and detecting fraud and other irregularities.d) They have prepared the annual accounts on a going concern basis considering thecomparative growth in OFC market future prospects of the Company with the support ofTCIL. e) They have laid down internal financial control to be followed by the company andthat such internal financial control is adequate and was operating effectively. f) Theyhave devised proper system to ensure compliance with all provision of all applicable lawsand that systems were adequate and operating effectively.

Extracts of the Annual Return

Pursuant section 92(3) of the Companies Act2013 and Rule12(1)of the Companies(Management And Administration) Rules2014 the extract of the Annual Return in Form MGT-9has been attached as to form part of the Report.

Corporate Governance

A report on Corporate Governance with the Practicing Company Secretaries Certificate oncompliance with conditions of the Corporate Governance has been attached as to form partof the Report.

Clarification on Practicing Company Secretaries observations is given below:

(i) Due to non appointment of Independent Directors the Company has not complied withRegulations 17(1) (b) 18 (1) and 25 (3) of the Securities and Exchange Board of India(Listing Obligations and Disclosure Requirements) Regulations 2015 in terms of minimumnumber of Independent Directors in the Board Constitution of Audit Committee andconducting a separate meeting of Independent Directors respectively.

The Company is Joint sector Govt. Company with 49% of its shares held by TCIL a Govt.of India Enterprise and 14.63% held by TIDCO a Govt of Tamilnadu Enterprise. The Boardas well as management control of the Company lies with TCIL. Being a Govt. Company actionhas already been taken for induction of Independent Directors in the Board of the Companythrough TCIL with the Dept. of Telecommunications and Ministry of Telecommunications &IT and the same are being followed up through TCIL for early appointment to complyregulation 17(1) (b). Constitution of Audit Committee as per 18 (1) of SEBI LODR andseparate Independent Directors Meeting as per 25 (3) of SEBI LODR shall be conducted afterappointment of required number of Independent Directors by the Ministry ofTelecommunications and IT.

(ii) The Company has not constituted Nomination and Remuneration Committee as perRegulation 19(1) of the Securities and Exchange Board of India (Listing Obligations andDisclosure Requirements) Regulations 2015.

Due to Company's sickness only the BIFR Nominee Director is being paid sitting feesfor attending the meetings. Managing Director being on deputation from TCIL A Govt. ofIndia Enterprise his salary is fixed as per TCIL's norms applicable to his cadre. TheDirectors of TCIL and TIDCO A Govt. of Tamilnadu Enterprise are also paid salary by theirown Organization applicable as per their cadre in their Organization. Only the travellingexpenses and local conveyance for attending the meetings are incurred by the Company. Inview of above no separate Committee was constituted. After appointment of IndependentDirectors by the Govt. necessary action will be taken for constituting the Committee.

(iii) The Company conducted only 3 Board Meetings and 3 Audit Committee Meetingsinstead of 4 meetings in a calendar year 2016 against the regulation 17(2) and 18 (2) ofthe Securities and Exchange Board of India (Listing Obligations and DisclosureRequirements) Regulations 2015 respectively.

The company conducted only 3 ( Three) Board Meeting and Audit Committee Meeting in theyear 2016 and the fourth meeting was conducted on 18th January 2017 whichshould have been conducted before 31st December 2016. This happened due toretirement / change in the positions of Key managerial Personnel (KMP) Like CompanyManaging Director and Chief Financial Officer.

(iv) The Company has not complied with Regulation 17(1) (a) of the Securities andExchange Board of India (Listing Obligations and Disclosure Requirements) Regulations2015 in terms of having woman director in the Board.

The Company is Joint sector Govt. Company as mentioned as replied at (i) above actionalready taken for induction of Woman Directors in the Board of the Company through TCILwith the Dept. of Telecommunications Ministry of Telecommunications & IT. The same isbeing followed up through TCIL for early appointment of woman Director.

Energy Technology and Foreign Exchange

Particulars relating to conservation of energy technology absorption and foreignexchange earnings and outgo as required under Sec.134 (3)(m) of the Companies Act 2013are enclosed as part of the Report.

Details of Director or Key Managerial Personnel who were appointed or have resignedduring the year

(i) Shri.V.S.Parameswaran on superannuation has resigned from the post of MD on30.11.2016 and Shri.R.Deva Kumar deputed by promoter company TCIL has been appointed asManaging Director with effect from 01.12.2016.

(ii) Shri Christy Fernandez IAS (RETD) Special Nominee Director has resigned asSpecial Nominee Director on 01.12.2016 representing BIFR on the Board of TamilnaduTelecommunications Limited.

(iii) Shri T.S Sivaramakrisnan on superannuation has resigned from the post of CFO on30.12.2016 and Shri.J.Ramesh Kannan Joint General Manager (Finance & Accounts)deputed by promoter company TCIL has been appointed as CFO from 31.12.2016.

Personnel

The Managing Director and the Key Managerial Personnel (CFO) were on deputation fromthe Promoter Company TCIL which is a Govt. of India Enterprise holding 49% stake in theCompany and controlling the composition of the Board of Directors. Hence theirremuneration were as per the scales applicable to their cadre in the promoter company.

The number of permanent employees as on 31.03.2017 was 69 excluding two officials ondeputation from the promoter company.

None of the employees drew remuneration of Rs.6000000/- or more per annum /Rs.500000/- or more per month during the year. This information is furnished as requiredunder Rule 5(2)(i) of the Companies (Appointment and Remuneration of Managerial Personnel)Rules2014.

Human Resources

Your company is glad to announce that the industrial relations continue to be verycordial. TTL has designated and implemented a large number of initiatives to build andimprove knowledge base and competencies of employees at all levels. TTL has beenencouraging its employees to come out with innovative suggestions which will pave way forsignificant cost savings as well as overall development of the company.

Quality Management Systems

Your Directors are happy to report that as a commitment in meeting global qualitystandards your company already has IS/ISO 9001:2008 quality management systemscertification from Bureau of Indian Standards. The license is valid up to 22.02.2018.

Internal Control System

TTL has adequate internal control procedures in respect of all its operations. It haslaid down internal control procedures to ensure that all assets are safeguarded andprotected against loss from unauthorized use or disposition and transactions areauthorized recorded and reported correctly. Internal Audit is being carried out byIndependent Audit Firm of Chartered Accountants on an ongoing basis and it recommendsappropriate improvements apart from ensuring adherence in company policies as well asregulatory compliance. The Audit Committee periodically reviews the audit findings.

Corporate Social Responsibility

Since the Company is continuously incurring losses no CSR policy has been devised.

Auditors

In terms of Section 139 of the Companies Act 2013 the Comptroller and Auditor Generalof India (CAG) had appointed M/s. S.VENKATRAM & CO Chartered Accountants as theAuditors of the company for the year 2016-17 at a remuneration of Rs.100000/-besidesreimbursement of traveling and out-of-pocket expenses at actuals subject to the otheritems and conditions as specified by the CAG.

Independent Auditor's Report

Clarification on Auditors observations is given below:

Basis for Qualified Opinion

a) The Company has not recognised the following financial liability/asset at Fair Valuein terms of IndAS 109 (including comparative figures as of 31st March 2016 and1st April 2015):

i) Amounts due to: Fujikura Limited amounting to Rs. 18945590; and

ii) Trade Receivables (considered good) amounting to Rs.74311691.

Qualified Opinion:

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of matter described in the Basis for Qualified Opinionparagraph above the aforesaid lnd AS financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India including the lnd AS of the state ofaffairs (financial position) of the Company as at 31st March 2017 and itsLoss (financial performance including other comprehensive income) Cash flows and thechanges in equity for the year ended on that date.

Emphasis of Matter

Without qualifying our conclusion in respect of this matter we draw attention to : a)S. No 3–Note–27-Notes to Accounts. As at 31st March 2017 the Company'saccumulated losses of Rs. 1177641518 (including a loss of Rs.162687588 for the yearunder audit) has eroded the Net Worth of the Company indicating the existence of materialuncertainty that may cast a doubt about the Company's ability to continue as a GoingConcern. Based on the mitigating factors and events occurring after the reporting periodas detailed in the said note the Management believes that the Going Concern assumption isappropriate. b) S.No 21–Note–27-Notes to Accounts . The Company has not restatedthe amounts due to its holding company viz.Telecommunications Consultants India Limitedamounting to Rs.839990817 at Fair value but retained the same at its book value. c)Considering the present inability of the Company to repay its debts the Bridge Loan andthe Working Capital Support received from Telecommunications Consultants India Limitedamounting to Rs. 116573000 and Rs.

61950290 respectively should be treated as a Long Term Financial Liability in thebooks of the Company and not as a Short term Borrowings.

Company's Reply to para 11 a) regarding preparation of accounts based on going concernconcept.

The requirement of OFC in the country is huge; however the delay in procurement is dueto various procedural matters / issues in execution of big projects by the Governmentclients. The company is hoping to get continuous orders from 2017-18 regularly since theOFC market has picked up and presently the company has Rupees Six crores value of ordersin hand to be executed in 2017-18. The order booking position is expected to becontinuously good. Considering the scope expected during the immediate future and with theTCIL financial support the accounts have been prepared on Going Concern Basis.

Company's Reply to para 9 a) (i) (ii) 10 11 (b) and (c) regarding retaining certainfinancial liability/ asset at book value instead of at fair value.

In the para 9a (i) and (ii) 11 (b) and (c) of independent auditor's report it isqualified/emphasised that the specified financial assets and financial liabilities are notcomplied in terms of Ind As 109 by not measuring at its fair value plus or minustransaction cost that are directly attributable to the said assets / liability.

As mentioned in our financials TTL is regularly borrowing from the holding companyTCIL for its raw material support and working capital support for running day to dayoperations. The balances of current liabilities and trade payable pertaining to relatedparty / the holding company TCIL as on 31/03/2017 are given below:

(i) Current liabilities – short term borrowing

(a) Bridge Loan : Rs. 116573000
(b) Working capital : Rs. 61950290
support loan
(ii) Trade payable – Sundry creditors for raw material support : Rs. 632893871
(iii) Other current liabilities – interest accrued : Rs. 28573657

Amounts due to Fujikura Limited amounting to Rs. 18945590;

Trade Receivables (considered good) amounting to Rs.74311691.

This is to state that the above items are reviewed and monitored on day to day basis inboth TTL and TCIL. The balances are periodically reconciled with TCIL and also approved byboard of directors of TTL.

The company's operations are dependent only on the related party TCIL's funding whichis being done on monthly basis for its working capital support and raw material support asand when required.

It may not be out of place to mention that all the realizations from TTL clients arerouted through Escrow account which is auto credited to TCIL's Account for which standinginstructions were given to bank. Moreover charge has been created in favour of TCILagainst fixed assets and current assets of TTL for all the TCIL loans advances andliabilities towards raw material supply. The loans are repayable on demand basis.

Ind AS 109 requires all financial assets/liabilities to be recognised initially at fairvalue and subsequently at amortised cost it satisfies the criteria with reference to IndAs 32 Para 11 and para 4.2.1 of Ind As 109. Since these financial assets/liabilities arecurrent in nature there is immaterial finance cost/income involved therefore as ageneral practice demand deposits are carried at cost and not at fair value/ amortisedcost.

In view of the commitment to pay to TCIL the holding company / related party on demandbasis and the company is taking a conservative approach management assume book value ofcurrent liabilities as a amortised cost i.e instead to book a profit by discounting aliabilities the company prefers to go and disclose liabilities with full amount under lawof prudence.

Cost Auditors:

As per the provisions of the Companies (Cost Records and Audit) Rules 2014 theoperation of the company is not falling within the scope of cost audit. Hence cost auditorwas not appointed for the financial year 2016-17.

Secretarial Audit Report

Clarification on Secretarial audit observations is given below:

(i) Due to non appointment of Independent Directors the Company has not complied withSection 149(4) 177(1) and Schedule IV of the Companies Act 2013 in terms of minimumnumber of Independent Directors in the Board Constitution of Audit Committee andconducting a separate meeting of Independent Directors respectively.

The Company is Joint sector Govt. Company with 49% of its shares held by TCIL a Govt.of India Enterprise and 14.63% held by TIDCO a Govt of Tamilnadu Enterprise. The Boardas well as management control of the Company lies with TCIL. Being a Govt. Company actionhas already been taken for induction of Independent Directors in the Board of the Companythrough TCIL with the Dept. of Telecommunications and Ministry of Telecommunications &IT and the same are being followed up through TCIL for early appointment to comply minimumnumber of Independent director as per sec 149(4) Constitution of Audit Committee as persection 177(1) and separate Independent Directors Meeting as per schedule IV shall beconducted after appointment of required number of Independent Directors by the Ministry ofTelecommunications and IT.

(ii) Due to non appointment of Independent Directors the Company has not compliedrequirement of constitution Nomination and Remuneration Committee as per sec 178(1) of thecompanies Act 2013.

Due to Company's sickness only the BIFR Nominee Director is being paid sitting feesfor attending the meetings. Managing Director being on deputation from TCIL A Govt. ofIndia Enterprise his salary is fixed as per TCIL's norms applicable to his cadre. TheDirectors of TCIL and TIDCO A Govt. of Tamilnadu Enterprise are also paid salary by theirown Organization applicable as per their cadre in their Organization. Only the travellingexpenses and local conveyance for attending the meetings are incurred by the Company. Inview of above no separate Committee was constituted. After appointment of IndependentDirectors by the Govt. necessary action will be taken for constituting the Committee.

(iii) The Company conducted only 3 Board Meetings and 3 Audit Committee Meetingsinstead of 4 meetings in a calendar year 2016 against the sec 173 of the Companies Act2013 and 18 (2) of the Securities and Exchange Board of India (Listing Obligations andDisclosure Requirements) Regulations 2015 respectively.

The company conducted only 3 ( Three) Board Meeting and Audit Committee Meeting in theyear 2016 and the fourth meeting was conducted on 18th January 2017 whichshould have been conducted before 31st December 2016. This happened due toretirement / change in the positions of Key managerial Personnel (KMP) Like CompanyManaging Director and Chief Financial Officer.

(iv) The Company has not complied with Section 149(1) of the Companies Act 2013 interms of having woman director in the Board.

The Company is Joint sector Govt. Company as mentioned as replied at (i) above actionalready taken for induction of Woman Directors in the Board of the Company through TCILwith the Dept. of Telecommunications Ministry of Telecommunications & IT. The same isbeing followed up through TCIL for early appointment of woman Director.

(v) The Company has not complied the Regulation 29 read with Regulation 33 ofSEBI(Listing Obligations and Disclosure Requirements) Regulations 2015 in respect offinancial results.

The Board has assured to comply with these regulations in future.

Comments of the Comptroller and Auditor General

The Comments of the Comptroller and Auditor General of India under Section 143(6)(b) ofthe Companies Act 2013 for the year ended 31st March 2017 are enclosed as part of theReport.

The Company has not disclosed the details of Specified Bank Notes (SBN) held andtransacted during the period from 8 November 2016 to 30 December 2016 as stipulated inMinistry of Corporate Affairs (MCA) Notification dated 30 March 2017. Further thestatement of Statutory Auditors in point no. 14(h) (iv) of their Report that the companyhas disclosed in its IND AS financial statements the details of the Specified Notes (SBN)held and transacted during the period from 8th November 2016 to 30th December 2016 andthey are in accordance with the books of accounts maintained by the company is not factualin view of the above.

Company's Reply : Specified Bank Notes are being maintained in the books ofaccounts (i.e) cash book on the daily basis. Separate statement was prepared fordisclosure in the notes to accounts providing transactions during demonetization periodfrom 8th November 2016 to 30th December 2016. It was inadvertentlyomitted. The company has undertaken to carry out the inclusion of this statement whileprinting the annual report and accordingly hereby disclosed as under:

Amount in Rupees

Denomi- nations SBNs Amount Other denomination notes Total
Closing cash in hand on 8th November 2016 1000*5 6000 2527 8527
500*2
(+) Permitted Receipts - - 66066 66066
(-) Permitted Payments 1000*5 6000 57267 63267
500*2
(-) amount deposited in banks - - - -
Closing cash in hand on 30th December 2016 - - 11326 11326

Acknowledgements

The Directors wish to place on record their sincere appreciation for the encouragementassistance support and co-operation given by Government of India Government of Tamilnaduand the Promoters. The Directors appreciate your whole hearted efforts during the year andsolicit your continued support and cooperation. Your Directors acknowledge the continuedtrust and confidence you have reposed in this company. They also wish to place on recordtheir appreciation for the hard work put in by the employees at all levels.

For and on behalf of the Board
Place: Chennai R.Deva Kumar B.Elangovan
Date: 11.08.2017 Managing Director Director
(DIN 07687666) (DIN: 00133452)

ANNEXURE TO THE DIRECTORS' REPORT

Disclosure of particulars as per Companies (Disclosure of Particulars in the Report ofBoard of Directors) Rules 1988.

A. CONSERVATION OF ENERGY

a) Measure taken for Energy Conservation:

Maintaining power factor at optimum level reducing loads whenever the machines are notrunning saving light energy etc had been followed vigorously. However due to the shortageof power in the state and due to reduction of capacity by the Tamilnadu Electricity Boardthe Company has to incur additional cost for usage during peak hours power cuts etc.

B. TECHNOLOGY ABSORPTION

Efforts made in technology absorption are given in prescribed FORM-B as annexed.

C. FOREIGN EXCHANGE EARNINGS AND OUTGO a) Activities relating to exports:Initiatives are taken to increase exports developments of new exports markets forproducts and services and export plans. Continuous efforts are being made to procureexport orders through TCIL as well as directly. A major thrust is being given to tap theexport market. However during the year under review the export market was notencouraging as expected and there were no exports. b) Total Foreign Exchange Used andEarned :

(Rs. in Lakhs )
2016-17 2015-16
Used 5.24 24.68
Earned 10.00 2.25

FORM A

(Form for disclosure of particulars with respect to conservation of energy) Theparticulars in respect of conservation of energy in the prescribed form are not applicableto the company and hence it is not furnished.

FORM B

(Form for disclosure of particulars with respect to technology absorption)

A. Research and Development (R&D)

1. Specific Areas in which the company carried out R&D activities: •Completionof the enhanced Quality Control and Production traceability features for compliance toRDSO standards for upgradation to Part-I Category vendor. RDSO-Lucknow Ministry ofRailways upgraded TTL to Part-I Category for supply of 24F Armoured Cable.

2. Benefits derived as a result of the above R&D: •Became eligibleto receive 75% order of the Zonal Railway Tender Quantity being a PartI Vendor.

3. Future Plan

Getting TSEC for LSZH Cable for use in Patch Cords and other FTTHapplications

To set up facilities for Patch Cord assembly

To install facilities for assembly and supply of FTTH Components

To setup facilities for production of OPGW manufacturing assembly

4. Expenditure on R&D (Product Type Approval)

Expenditure towards the R&D is Rs.33285/-

B. Technology absorption adaptation and innovation.

Maintaining the process rejection standards as specified by the Technologypartner.

To retain the zero feed-back status and maintain the good manufacturingstandards prevailing.