Welcome to the 67th Annual General Meeting of ITI Ltd. The Notice related to thismeeting Director's Report Audited Annual Accounts together with the Auditor's ReportComments of the Comptroller and Auditor General of India on the accounts of the Companyare already with you and with yourANNUAL permission; I shall take REPORT them as read.Further 2016 I am pleased -17 to inform you that the Company has complied with theguidelines on Corporate Governance for CPSEs. On behalf of ITI and the Board of Directorsit is indeed an honour and a privilege to share my thoughts with you through the AnnualReport 2016-17.
You will be delighted to note that Financial Year 2016-17 has turned out to be yetanother year of robust performance by your company.
Your company's performance for the financialyear 2016-17 has been phenomenal as thecompany achieved a turnover of Rs.1611
Crores which is remarkably the highest turnover in the past six years. I am also veryhappy to announce that with the grants from the Government of India net profit for theperiod before tax (after exceptional and/or extraordinary items) increased by 21% toRs.305 Crores for the year ended March 31 2017 as against 251 Crores for the previousyear. As on date ITI has order book of Rs.1600 Crores Further ITI's losses havedrastically come down to Rs.56 Crores in 2016-17 from Rs.243 Crores in 2015-16 without anygovernment grants which is an incomparable organizational achievement for the company.Your company is making efforts to regain its strong leadership position in the country intelecommunications segment. Facts and figures amply demonstrate your
Company's excellent performance for the current year. Company has plans to keep thissustainability going on and achieve the complete turnaround with the support of Governmentof India. At present the company has been working on very important projects of NationalImportance. We are executing GPON order of BBNL with C-DOT technology for Government ofIndia's prestigious project of "BharatNet". We have also received orders forsupply and installation of GPON from BSNL and one more order from BBNL. We are discussing"BharatNet" phase II and expect more orders from this mega project. We havedeployed 400 teams for Installation and Commissioning of this nationwide networkpenetrating to the uncovered Gram Panchayats in the hinterland of remote Rural India.Thisproject provides
Broadband connectivity to 2.5 Lakhs Gram Panchayats in India. The other importantproject being executed is the NFS (Network For Spectrum) project for the defence forces ofIndia. ITI has won the order for 2 zones for deployment of optical fibre for around13500 Kms of length. ITI has already completed 70% of the work and should be completingthe entire project by this year end. I am very proud to share with you that componentstested at the Palakkad facility were part of the recent rocket launch of the ISRO.Palakkad plant has contributed to the manufacturing of electronic assembly for ISRO'sGeosynchronous Satellite Launch Vehicle (GSLV) Mark III one of the prestigious missionsof ISRO which gave a giant leap for India in space programme. The electronic packagesfabricated at ITI Palakkad plant were successfully launched on June 5 2017.
On the defence front the company has participated in the mega tender of ASCON Phase IVproject and we are successful in the technical round now awaiting opening of thecommercial bid. ITI has recently won a contract from BSNL for encryption products of theNFS project. We are expecting an order for Rs.90 Crores from the defence for thesupply of encryption products. We have also bid for the ASCON encryption tender and hopingto get different orders. In addition ITI has orders for MIL PCM and other projects fordefence.
We are executing telecommunication projects for our major customer BSNL. We have anorder for MLLN (Managed Leased Line Network) worth Rs.130 Crores which is under execution.We are also upgrading the SSTP (Standalone Signal Transfer Point) network of BSNL. Otherprojects under execution are
Broadband NMS network and supply of cards for C-DoT AN RAX.
With the support from Government of India ITI has upgraded the manufacturinginfrastructure to world class. We plan to reinforce our business of manufacturing with theinclusion of HDPE pipes OFC 3D printing Li-Ion batteries in addition to the telecomequipment manufacturing. The company has installed 3D Printing facility at Bangalore. TheCompany has recently established HDPE pipe manufacturing line at Rae Bareli andestablishing one in Palakkad also. OFC facilities are planned at Rae Bareli and Bangaloreplants. These initiatives along with GPON manufacturing will make us a strong contenderfor participating in BharatNet phase II project which is expected to be notified shortly.
Infrastructure for Solar Panel manufacturing at Naini unit is up-graded to a capacityof 18 MW. Mankapur plant enhanced the facility to manufacture ONTs with a capacity of 8000Nos per month and BBWT (Broad Band Wireless Terminal) based on C-DoT technology.Manufacturing of Set Top Box and Mini PCs are being done at Palakkad unit with the newfacility. Bangalore plant has established infrastructure for manufacturing of Radio Modemswith a capacity of 300 Modems per month and also Antenna for different wireless products.
Dear shareholdersITIhasalwaysbeenlookingatdiversifiedproducts for new revenuegeneration. Apart from manufacturing we would also focus on certain emerging areas ofbusiness like Mobile Wallet IOT e-Governance ICT projects Data Centre Wi-Fi andservice sectors. As part of Digital India initiative
ITI has launched TAG-ITI' Wallet a digital mobile wallet that can be used forcashless transactions & online payments. We are the first manufacturing
PSU to have entered into cashless transaction with this "TAG-ITI". By usingTAG-ITI Wallet one can make payment for pre and post paid mobile DTH landline internetdata card and electricity bills. We have good number of users and I personally request allshareholders to download this App and use this. ITI also provides AADHAAR basedauthentication services to various agencies. ITI is also focusing on IoT and ICT projectsunder Digital India. We have bagged many orders for various services like AADHAARauthentication e-signature e-KYC under different projects like e-mitra e-gram fromvarious State
Governments and also banks like NABARD Cooperative banks. We have tied up with manytechnology providers for offering various solutions based on IoT which go into buildingsmart infrastructure for smart cities and also for augmenting the Digital India initiativeof Government of India. The Company has established a "Centre of Excellence" forIOT and Skill Development. ITI has entered into teaming agreement with number of IoTcompanies including some start-ups firms. We plan to showcase the smart solutions from thestart-up companies in this facility. We are setting up a Data Centre with a rack space of
24000 Sq ft and hope to get good orders from Government agencies.
ITI is committed to the Honorable Prime Minister's vision of "Swachh Bharat".In this direction we are very proud to be associated with the Ministry of UrbanDevelopment (MoUD) in realizing the dream of cleaner India. MoUD plans to install feedbackdevices at the public and private toilets to regularly monitor and maintain cleanliness oftoilets. MoUD has been kind enough in issuing directives to 12 State Governments toconsider procurementof feedback devices from ITI. ITI is committed to the Make inIndia' initiative of Government of India. In this direction we have upgraded ourinfrastructure for manufacturing of telecommunication equipment in India. In addition tothe projects mentioned above we are trying to monetize on our unutilized land and helpbuild facilities like cinema hall auditorium kalyana mantapam party hall etc. Dearshareholders we had a dream of revival of ITI. With the support of Government of Indiaand the guidance of DoT we have started the revival journey. We have taken variousinitiatives for the turnaround of ITI. To achieve the total turnaround we are embarkingon a 3-point strategy for the next 2 years: Business Focus : To reinforce our business ontelecom equipment manufacturing and focus equally on other avenues like IOT E-GovernanceICT projects and Services sector. Financial Growth : To break-even in this financial yearand make more profits in the coming years. Turnaround : To sustain on our own from2017-18.
ITI Limited is a rich blend of youth and experienced professionals. This wide-rangingability will further display as we become a larger integrated entity in telecom equipmentmanufacturing and ICT projects. Our people have a strong sense of emotional ownership ofour company and their combined efforts are our most enduring strength. In the years tocome ITI will be able to achieve the collective leadership of the top management thewise counsel of my colleagues in the board the guidance from Ministry of Communicationsand above all sustained support from our shareholders will help ITI people achieve themultiple objectives of company's vision. With that I assure you that ITI shall continueto put its best efforts in sustaining the growth of your company and thereby ensuresustained returns to its stakeholders.
I am grateful to the Government of India Ministry of Home Affairs Ministry for RuralDevelopment Ministry of Defence Department of Telecommunications Telecom CommissionBSNL MTNL Defence TCIL Indian Railways all departments of Central and StateGovernments and other valued customers Depositors Banks Financial InstitutionsOverseas Collaborators Auditors Committee on Public Undertakings [COPU] StandingCommittee on Information Technology and Standing Conference of Public Enterprises [SCOPE]for their continued co-operation and support. I also take this opportunity to extend mythanks to all the employees and shareholders for their support and understanding.
With best wishes
NB: This does not purport to be a record of the proceedings of the 67th Annual GeneralMeeting. S. Gopu
Chairman & Managing Director