Himachal Futuristic Communications Ltd (HFCL) is a diverse telecom infrastructure enabler with active interest spanning telecom infrastructure development system integration and manufacture and supply of high-end telecom equipment and Optic Fiber Cable (OFC). Their manufacturing facilities are located at Solan in Himachal Pradesh Salcete in Goa and New Delhi.Himachal Futuristic Communications Ltd was incorporated on May 11 1987. The company started with manufacturing transmission Equipment and soon they expanded their product portfolio to manufacture Access Equipment Optical Fibre Cable Accessories and Terminal Equipment. The company is geared up for meeting the new generation access network demand in future.The company was incorporated in the State of Himachal Pradesh and was promoted by Deepak Malhotra Mahendra Nahata and Vinay Maloo. The company entered into a technical collaboration agreement with Seiscor Technologies Inc USA for the manufacture of 1+1 and 1+7 Analog Subscriber Carrier Systems and also signed a Memorandum of Undertaking with Philips Kommunikation Industries AG of Germany for the manufacture of the Digital Subscriber Carrier System.In the year 1991 the company promoted two new companies namely Himachal Telematics Ltd at Solan for the manufacture of digital microwave radio transmission equipments and fax machines and Microwave Communication Ltd for establishing radio paging network in certain important cities of the country. During the year 1993-94 the company acquired existing investment companies know as Kaldev Trader & Investment Ltd which was changed to HFCL-Trade-Invest Ltd and Coubndge Construction (Delhi) Ltd. Also they entered into agreements with telecom giants namely Kong Song Communication & Electronics Co Ltd Korea to manufacture radio pagers and satellite video receivers Dalcons Corporation of Korea for managing credit card information services and Wireless Telecom Ltd of USA to implement V-sat services.During the year 1995-96 Himachal Telematics Ltd was merged with the company. In the year 1997 the company bagged a contract to set up an information super highway for the basic telephone project of Essar Commvision Ltd in Punjab circle. During the year 1996-97 the company's Optical Fibre Cable Plant in Goa commenced their commercial production. In the year 1998 the company entered the information technology business by offering software solutions to the telecom industry.During the year 1998-99 the company has received Purchase Orders worth Rs 22 crore for the supply of STM-1 Optical Line Terminal Equipment and advance Purchase Order of another Rs 100 crore for STM-16 Systems. In the year 1999 the company forayed into software exports and developed a state-of-the-art facility at Delhi for that purpose. They bagged a contract from Reliance WorldTel for setting up Internet backbone in Tamil Nadu. During the year 1999-2000 the company entered a strategic tie-up with the Kerry Packer Group of Australia and formed two joint ventures namely Consolidated Futuristic Solutions Ltd and Excel Netcommerce Ltd in the field of Software and B2B E-commerce respectively. HFCL Infotel Ltd and Consolidated Futuristic Solutions Ltd became the subsidiaries of the company during the year 2000-01.During the year 2001-02 the company acquired 74% of equity of HTL Ltd a public sector undertaking which is the largest switching equipment maker in the country for Rs 55 crore. HTL Ltd became the subsidiary of the company with effect from October 16 2001. Also the company divested part of their shareholdings in Consolidated Futuristic Solutions Ltd consequently Consolidated Futuristic Solutions Ltd ceased to be subsidiary of the company with effect from December 6 2001.During the year 2002-03 the wholly owned subsidiary company namely HFCL Trade-Invest Ltd merged with the company with effect from March 31 2003. HFCL Infotel Ltd merged with the Investment Trust of India Ltd a Chennai based company and was renamed as HFCL Infotel Ltd with effect from September 1 2002. Also Rajam Finance and Investments (India) Ltd which was renamed as The Investment Trust of India Ltd became the subsidiary of the company by virtue of their subsidiary relationship with HFCL Infotel Ltd. The Investment Trust of India Ltd ceased to be the subsidiary of the Company with effect from September 30 2003.During the year 2003-04 the cable division of the company entered into Cable TV market and they emerged as a dominant player in that segment. Also they received the order valuing of about Rs 220 from MTNL. During the year 2004-05 the company completed the biggest ever order of 200 K Lines of WLL CorDect and 60% of CDMA Infrastructure order of MTNL.Moneta Finance (P) Ltd has become the wholly owned subsidiary of the company with effect from July 11 2006. During the year ended 31 March 2014 HFCL successfully bid and won certain contracts to supply its products as well as services. HFCL voluntarily sought the delisting of its GDRs from London Stock Exchange and Luxembourg Stock Exchange. The GDRs listing have been cancelled from London Stock Exchange and Luxembourg Stock Exchange w.e.f. 21 March 2014 and 23 December 2013 respectively consequent upon resignation by the Depository i.e. Bank of New York (BNY Mellon). HFCL has not appointed any Successor Depository and has terminated the Deposit Agreement due to lack of liquidity with virtually no trading taking place and investors' decreasing interest in depositary receipts.During the year ended 31 March 2015 HFCL accelerated its performance in both of its manufacturing and turnkey business segments. In manufacturing of OFC the company achieved record revenue and profits coupled with full capacity utilisation of the facility in Goa. Exports of OFC was another breakthrough during FY 2015. Equipment manufacturing saw production of GSM products.In turnkey projects execution HFCL has successfully completed high capacity optical transport network for Railtel by deploying 80 channel DWDM system at over 60 sites along two connecting routes between Delhi - Mumbai. The project is under annual maintenance contract and based on excellent execution the customer has gone ahead with 75% expansion order on the company. Another success was the winning of a turnkey contract for laying OFC network in one of the largest states of the country from BSNL. Further the company was awarded large project for setting up of GSM network at extremely remote standalone sites and connecting each site to the national network.M/s HFCL Advance Systems Private Limited became the wholly owned subsidiary of the company w.e.f. 23rd February 2015.HFCL achieved its highest ever revenue of Rs 2570 crore in financial year ended 31 March 2016. It performed well on all the business verticals. The company has also established itself as a global supplier of OFC products with exports to over 25 countries in FY 2016 (16 countries in FY 2015). HFCL achieved highest ever export revenue of Rs 75.27 Crore in FY 2016 (Rs 34.88 Crore in FY 2015) despite tough market competition from local as well as foreign competitors.In telecom equipment manufacturing HFCL in FY 2016 started manufacturing low capacity GSM system for rural deployment which has large business potential in India for next 2-3 years. The company during FY 2015 and FY 2016 participated in four large tenders aggregating to approx. Rs 5000 Crore floated by BSNL for setting up of countrywide Defence Telecom network. The company has already received an advance order of Rs 1245 Crore in one tender and the techno-commercial evaluation of one more tender valued at approx. Rs 2500 Crore has been completed. The company has stood as lowest bidder in that tender also. HFCL's debts were earlier restructured under Corporate Debt Restructuring (CDR) mechanism and as stipulated therein the lenders had the right to claim recompense from the company at the time of its exit from CDR on account of various sacrifices & waivers made by them in the CDR Package. With the improved financial performance the company submitted its proposal for exit from CDR mechanism to Monitoring Institution (MI) i.e. IDBI Bank Limited. The MI has recommended recompense amount of Rs 148.47 Crore on term and working capital loans. The same has been approved by CDR - Empowered Group vide their order dated 22 March 2016 subject to the approval from company's lenders. Subsequent to CDR-EG's approval the recompense amount has been approved by some of the lenders and approval from remaining lenders is expected soon. Accordingly the Board of Directors of HFCL at their meeting held on 10 May 2016 approved the recompense amount of Rs 148.47 Crore to exit from CDR mechanism.HFCL acquired 160000 equity shares of Polixel Security Systems Private Limited (Polixel) thereby the total equity holding of the company reached upto 94% and Polixel became the subsidiary of the company w.e.f 9 August 2016. The company further acquired additional 10856 equity shares of the Polixel thereby the total equity holding of the company in Polixel has reached to 100% and accordingly Polixel has become the wholly owned subsidiary of the company w.e.f. 31 March 2017.During the year ended 31 March 2017 HFCL's Goa plant underwent a wholesome modernisation. The annual capacity also was raised from 5 MFkm to 7.2 MFkm adding some new cable variants in the process. The year also marked the first full year of operations for the recently commissioned Chennai facility of HTL a subsidiary company. Consequently the capacity of Spiral Wire Armoured cable was doubled and the annual capacity for traditional Armoured Cables was raised from 3 MFkm to 4.5 MFkm. Moving up the value chain the company also added FTTH cable in its Chennai facility during the year.In Turnkey business HFCL accomplished a challenging feat of developing and commissioning a GSM network in Left Wing Extremist (LWE) region. The mammoth exercise involved the deployment of more than 500 sites across 6 states. The company also won a Wifi network turnkey project worth Rs.200 crore from BSNL for roll out of Wifi services across 16 states in the Northern and Eastern India. In order to increase its network's backhaul capacity BSNL Mobile Network floated two separate tenders for microwave backhaul radios. HFCL bagged both these tenders involving supply commissioning and maintenance of about 10000 radios to be deployed across India. The order value is Rs.180 crore.The company made significant progress in new business verticals of Railways Smart Cities and Defence during the year. In Railways business vertical the company bagged certain orders for a variety of railway signalling linked applications during the year. The company signed two contracts totalling Rs.113 crore to execute Trenching & Laying of Signalling Cables and also for Design Manufacture Supply Installation Testing Commissioning and incidental services of telecommunication System for the Bhaupur-Khurja section of the Eastern Dedicated Freight Corridor covering route length of 343 km as a sub-contractor to Alstom Systems India Pvt. Ltd.In another success the company signed a contract worth Rs.95 crore with Larsen & Toubro Limited for Design Manufacture Supply FAT Installation Testing & Commissioning Training and DLP at site of the Telecommunication System comprising of various sub-systems viz. OFC SDH Data Networking Dispatch Telephone EPABX Master Clock System and Power Supply for STP-17 of the Western Dedicated Freight Corridor Phase 2.In Smart Cities business vertical HFCL bagged two projects in FY 2017 one for Ludhiana Smart Surveillance & Intelligent Traffic Management Systems and the other for Jaipur regarding Provisioning & Integration of Wifi Hotspots Interactive Information Kiosks Surveillance Cameras Environmental Sensors Structural Sensors Smart Lighting Solutions and Remote Kiosks along with the Facility Management Services.In Defence Business vertical HFCL signed an MOU with a French MNC as its Technology Partner for Portable Opto Electronics during the year for manufacturing wide range of Portable Night Vision Devices. During the year the company submitted RFIs for Weapon Night Sights for various weapons Electronic Fuses for Artillery Ammunition Manufacture of Mini UAVsDuring the year ended 31 March 2018 HFCL issued and allotted 45000000 Warrants convertible into equity shares on preferential basis at a price of Rs16/- per warrant to Promoters/Promoter Group of the companies and Non Promoter persons/entity. The Warrant holders have already paid 25% of the issue price and balance 75% of the issue price shall be paid at the time of exercising of Warrants. The Warrants shall be exercised within a period of 18 months from the date of their allotment i.e. 30th October 2017 in one or more tranches.During FY 2018 HFCL's Goa plant developed new compact designs for micro optical fibre cables with lesser diameters and new dry-dry optical fibre cables. These new variants are extremely popular in FTTx networks. Many product certifications were received including CPR (Construction Products Regulations) for different product variants. The CPR Certification demands stringent product performance in the event of fire and is mandatory now for supplies to European countries. The Chennai plant of HFCL's subsidiary HTL Limited got several product & process approvals including TL-9000 certification. HTL Limited also implemented SAP ERP system in order to have better monitoring & control on manufacturing activities. New machines were added for manufacturing of Steel Wire Armored Cables which is popular in many European countries. Also various alterations and renovations were carried out in the overall infrastructure to enhance efficiency and productivity of HTL Limited's manufacturing plant at Chennai. Consistent efforts to have better control on value chain culminated in addition of FRP and GFR manufacturing facilities at the Chennai premises of HTL Limited.In FY2018 HFCL secured a 3-year contract from Nokia for supply of optical fibre cables for Digital Poland Project funded by EU. During the year under review against the Advance Purchase Order worth Rs1245 crore approx (including AMC of Rs298 crore) the company has received a Purchase Order worth Rs 935 crore approx from BSNL for DWDM equipment to be installed on pan India basis for the Defence Forces under Network for Spectrum Program (NFS). In Smart Cities business vertical HFCL has received Letter of Intent from RajComp Info Services Ltd (RISL) for supply Installation and Commissioning of edge networking equipment under surveillance and Incident response project in the state of Rajasthan.