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ITI Ltd.

BSE: 523610 Sector: Telecom
NSE: ITI ISIN Code: INE248A01017
BSE 00:00 | 27 Jan 100.60 -1.30
(-1.28%)
OPEN

100.15

HIGH

103.55

LOW

99.60

NSE 00:00 | 27 Jan 100.50 -1.50
(-1.47%)
OPEN

102.70

HIGH

103.55

LOW

99.55

OPEN 100.15
PREVIOUS CLOSE 101.90
VOLUME 15250
52-Week high 129.50
52-Week low 80.35
P/E 147.94
Mkt Cap.(Rs cr) 9,553
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 100.15
CLOSE 101.90
VOLUME 15250
52-Week high 129.50
52-Week low 80.35
P/E 147.94
Mkt Cap.(Rs cr) 9,553
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

ITI Ltd. (ITI) - Chairman Speech

Company chairman speech

Dear Shareholders

Warm Welcome to the 72 Annual General Meeting of ITI Ltd. The Noticerelated to this Meeting Director's Report Audited Annual Accounts together with theAuditor's Report Comments of the Comptroller and Auditor General of India on the accountsof the Company are already with you and with your permission; I shall take them as read.Further I am pleased to inform you that the Company has complied with the guidelines onCorporate Governance for CPSEs. On behalf of ITI and the Board of Directors it is indeedan honour and a privilege to share my thoughts with you through the Annual Report 2021-22.

The Financial Year 2021-22 of the company has been a year of impressivesuccess despite several challenges. Your Company has registered profit for the fifthconsecutive year and the company's performance for the financial year 2021-22 has beensignificant as the company has clocked a turnover of Rs. 2077 Crore with a Profit AfterTax of Rs. 121 Crore. The contribution was mainly from Turnkey Projects like GujnetMahanet NFS Project ASCON Phase IV Project Airtel FTTH Rollout Upgradation of DataCentre for Indian Air Force Upgradation of 3G network to 4G/LTE for Indian Air Force.However this year there was significant contribution from Manufacturing and supply ofvarious products viz HDPE OFC Encryption Products Solar Panels FDMS Smart cardsSolar street lights. Services like AMC for ASCON Defence Equipment NGN equipment OCBGSM-SZ & MLLN Data Centre VSSC Business Third Party Audit Services (TPA) and alsobusiness generated by MSPs has contributed for this achievement.

Dear Shareholders it gives me immense pleasure in informing that theCompany is going in a big way addressing the latest technology opportunities for 4G &5G Radio's. In partnership with TCS company is conducting POC for 4G in the BSNL Networkwhich is expected to be completed next month. We have also signed MOU with C-DOT fortransfer of technology for manufacture of 4G Radio's. We expect to manufacture prototypesby November and subsequently go for mass production. We have already received a PO for POC(20 sites of 4G & 5 sites for 5G) from BSNL. Company has RQ order from BSNL for 20% ofthe 4G requirement. In order to meet this the Company plans to manufacture both TCS andC-DOT 4G Radio's. Manufacturing infrastructure is ready and with the CAPEX from DOTTesting infrastructure is also being positioned. This would give us a minimum turnover ofaround Rs. 350 Crore from RQ. Further we also plan to manufacture 4G Radios for TCS TQgiving us added turnover. Manufacturing of 4G Radios is expected to be a game changer forthe company. Recently USOF DoT has approved 4 pilot projects - one in E band Radio and 3projects for 4G technology. Company is coordinating with the firms to deploy theseinnovative technologies as pilot projects. This would give us more opportunities on thetechnology front for addressing emerging technology business coming from BSNL and othercustomers.

Today let me also share with you all the contribution of the differentmanufacturing units. Bangalore Plant has Manufactured and Supplied during FY 2021-22Encryption Devices to DCN network and ADRIN network. In order to support PM WANIframework which envisages provision of Broadband through Public Wi-Fi Hotspot providersBangalore Plant has manufactured and supplied C-DoT designed Mini PDO. In this directionwe have also entered into agreement with CDoT for manufacturing Wi-Fi 5 & Wi-Fi 6variants also. The Data Centre which is Empanelled Cloud Service Provider with MeitY(Ministry of Electronics and Information Technology) has Capability Maturity Model (CMMi)Level 3 and other ISO certifications. Data Centre can offer a wide spectrum of serviceportfolios including High density hosting services Cloud services Managed securityservices on demand services Professional services Security (SoC) and Managed ITservices. We are yet get a breakthrough in selling these services. We have on boarded 12customers and our discussions with AdaniConnex (ACX) are under progress. Another veryvital initiative is to set up SoC platform in the Data Centre to offer services tocustomers MSMEs to monitor prevent detect investigate and respond to cyber threatsaround the clock. We expect to launch this service shortly. Telecom Test Labs cater tovarious customers ranging from commercial communication medical industrial IT anddomestic sectors. EMC Lab is accredited by National Accreditation Board for Testing andCalibration Laboratories (NABL) and Conformity Assessment Body (CAB) by TEC Delhi. We arealso augmenting 60 additional tests from automotive railways medical householdappliances standards which is expected to be completed by this month. The Startup hub ismaking a good progress in attracting startup firms and there is a need to identifystartups in telecom domain to be part of this hub so that we could encourage theinnovative products in the Telecom IoT and other areas by way of manufacturing &marketing of successful products. R&D has been a pioneer for last 5 decades in thedesign & supply of encryption devices to Defense. Now R&D is also exploring in thenew areas of Digital Mobile Radio EVM IRNSS Receivers High Capacity Radio SDR etc. allthese products are going to be the core products of the company in the coming years.

Palakkad Plant has entered in to a MoU with Intel for TechnicalAdvisory role as well as to identify business requirements for Laptops. The Laptopsdeveloped by Palakkad have obtained BIS FCC RoHS CE BEE etc. certifications. Theproduct is available in various configurations and the company has also signed anagreement with Microsoft for Windows OS which will enable to get direct support likeother OEMs. The first order of 100 Nos Laptops from Kerala State Electronics DevelopmentCorporation is under progress. The desktop Micro PCs developed is registered on GeM and wehave been supplying around 2000 to 3000 Micro PCs annually. I feel proud to inform thatin Component Screening Lab which is the prestigious assignment with VSSC ISRO more than70000 electronic components/assemblies are screened during last 5 years and more than2500 flight packages are successfully utilised in various launch vehicles of GSLV PSLVincluding Chandrayan Gaganyan. Company has been discussing couple of OEMS IIT Delhi andIIT Hyderabad for developing Smart Energy Meter. We can have different models of SmartMeter to cater for different segments of market coming from DISCOMS EESL etc. The Companyis also trying to venture as an Advanced Metering Infrastructure (AMI) solution provider.I would like to appreciate Palakkad team for smooth PDI and supply of HDPE Duct for ASCONProject. Further HDPE duct is also manufactured at Palakkad for TANFINET A&N projectsand also for Indian Railways.

The Mankapur Unit has successfully developed manufactured and suppliedFibre Distribution Management Systems (FDMS) for ASCON PH-IV requirement. The plant has anorder for supply of 40000 ONTs to Railway and the same will be completed by December2022. The HDPE duct plant established in Mankapur is now being converted to manufactureWater Pipes so as to address varied opportunities. Mankapur also manufactured variousdiversified products like Note counting Machines Vending Machines Sanitizer Dispenseretc. We have to make efforts to market vending machines in Railways Colleges and Publicutilities. Contract EMS manufacturing for M/s Varahi for 3 lakh Tablet PCs meant for UttarPradesh state government requirement is also taken up by the Unit.

Raebareli unit has manufactured around 10000 Kms of OFC for ASCONPH-IV Railways and Indian Air Force Projects. The OFC manufacturing line has beenaugmented recently. The unit has also manufactured and supplied 200 Kms of HDPE duct forASCON project and 200 Kms for IAF Project. The unit has to explore bigger opportunitiesfor OFC HDPE to see that the facility runs at the maximum capacity. We have to utilizethe OFC training centre for improving the revenue. The Unit is also exploring businessopportunities in SMTS manufacturing.

Naini unit has supplied 16640 numbers of Solar Panels for setting upSolar Power Plants of cumulative capacity of 5.60 MW in units of the company for Captiveuse. This initiative definitely reduces the energy expenditure of the units by 20%. NainiUnit has manufactured 662 numbers of solar panels for private sector and has also suppliedSolar Street Lights for EESL in the state of Uttarakhand. We are also planning to set upMono Crystalline Solar Panel manufacturing line of 250 Mega Watt capacity for which we areexpecting capex from DoT. Srinagar unit focuses on Skill development programme and is alsoconsidered for establishing certain manufacturing infra i.e HDPE OFC training center.

Dear shareholders Company's Corporate Marketing team has beenaggressively exploring private market for various products of the company. Empanelmentwith Vodafone for HDPE duct is completed & OFC is under process. PO for both items isawaited. Empanelment with Airtel for Duct & OFC is in progress. Many other initiativesof supplying Mini OLT and ONT to Tata Power Supply of Mini PC to Pvt institutionsContract manufacturing of Tablet PCs for around 3 Lakhs quantities OFC for Airtel FTTH& NLD projects HDPE duct of 8000 KMs to RIIL for Mahanet 10000 Nos Solar Modules of125 Watt for Patanjali 2500 modules of 325W to An's Evolving Pvt Ltd are under activeconsideration and we hope to get good revenue from these opportunities.

The Company's Network System Unit (NSU) has been the main revenuechurning unit in the last financial year. The main projects being executed by NSU areASCON PH-IV GujNet TANFINET MahaNet. In the ASCON PH-IV PoC completed successfully forMicrowave & OFC and PoC for the balance sub-systems to completed by Sep-2022. EvenPrior to completion of PoC for OFC the full-fledged rollout of OFC had been startedacross all the fronts i.e. Western Northern & North-Eastern regions of India and2850 kms of T&D has been completed till date. Construction work of buildings hascommenced at the sites where drawings have been approved by Army and the balanceapprovals are being continually pursued. I am happy to inform that we hope to achieve aturnover of around Rs. 900 Crore from ASCON IV during this financial year. In the GujNetproject 99.9% GP litting has been completed. Balance work pending due to ROW likely to becompleted by Sep-22. In the TANFINET project 100% survey completed and detailed plansubmitted for 109 Blocks to TANFINET out of which approval received for 83 Blocks.Execution started in 18 Blocks for litting of 403 GPs. 323 kms of T&D work and 800 kmsof aerial slinging of OFC has been completed. 300 GP Litting is targeted by the end ofSeptember -2022. The MahaNet Project is likely to be completed by Dec-2022.

Dear Shareholders technology has been changing at rapid pace and wehave to change adapt to catch up & align so as to be competitive in the business. 4GRAN Smart Energy Meter DMR Solar business may be the game changers for the company. Theroad ahead is extremely rough but let us all take it as a challenge that we will surmount.We have to channelize all our talents & ingenuity towards accomplishment of largergoal. Our commitment is unshakable. Our drive to excel is resolute. The company can excelonly by all of us working with utmost Diligence Unity and single-minded focus will sureto take us to greater heights. With the various new initiatives new approach newbusiness segments new projects & products I am confident that we can becomeself-sufficient in the near future. Let us all work in harmony to see that the companywhich has now risen like a Phoenix to become the best performing PSU of India. Companywould also be completing 75 years of inception next year and we should be celebrating'Amrit Mahotsav' through our best performance in this Financial year. With the support ofDoT and Government of India we shall launch the company towards market leadership &financial sustenance.

I am grateful to the Government of India Ministry of Home AffairsMinistry for Rural Development Ministry of Defense Department of TelecommunicationsTelecom Commission BSNL MTNL BBNL Defense TCIL Indian Railways all departments ofCentral and State Governments and other valued customers depositors banks financialinstitutions overseas collaborators Auditors Committee on Public Undertakings [COPU]Standing Committee on Information Technology and Standing Conference of Public Enterprises[SCOPE] for their continued co-operation and support. I also take this opportunity toextend my thanks to all the employees and shareholders for their support andunderstanding.

Thank You
Place: Bengaluru Anand Singh

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