1994 TELEPHONE CABLES LIMITED CHAIRMAN SPEECH REVIEW OF PERFORMANCE The year 1993-94 has been another year of good performance by your Company. Though the gross Income has marginally declined due to deduction in the copper base price and consequent deduction in sale pnce as per price escalation formula, the net profit has gone up to Rs. 11.52 crores as compared to Rs. 8.51 crores in the previous year- an appreciable growth of 35%. There has also been increase in sales volume from 11.24 lac CKM to 12.02 Lac CKM. Whereas earning per share has substantially grown to Rs. 11.65 as against Rs. 8.63 last year, cash earning per share works to Rs. 15.56. In view of the impressive results, vour Directors have recommended a higher dividend of 20% (Previous year 15%). CURRENT PERFORMANCE Orders received till date are for approximateiy 7 Lac CKM and further orders are expected as soon as tenders are finalised. During the year we hope to produce 15 Lac CKM and the results are expected to be better. FUTURE OUTLOOK The process of economic liberalisation initiated by the Government continues and has started vielding results. The recently announced National Telecom Policy lays emphasis on allowing private sector to plav an important role in the development of Telecom gector ad thereby ends the monopoly of the Government in this sphere. Having regard to the recent growth of the economy and the re-assessed demand, the Eighth Plan Targets have been revised. The New Telecom Policy envisages-- (a) to make telephones available on demand in theUrban areas and to cover all the villages by 1997; (b) to provide a PCO for every 500 persons in the Urban areas by 1997; and c) to introduce all value added services available internationally and to raise the telecom services in India to International Standard preferably by 1996. The revised targets provide for release of 10 million connections as against 7.5 million dunng the Eighth Plan Period. It is envisaged to increase the capacity to 20 million lines by the year 2000. This means an annual growth of 15-20%. In future one can expect Optic Fibre Cables to have a large presence in metropolitan areas as well as on the mainline tnunk routes while the other areas will continue to be served by JFTC. Both these segments are thus expected to grow. However, with the intensification of telecom network the emphasls will be to upgrade the existing lines which will result and growing demand for Optic Fibre Cables in the near future. Thus it is necessary to take care of demand for both to remain in the forefront in the industry. The new Telecom Policy offers enormous opportunities of growth and development and promislng future for the telecom industry. FUTURE PLANS To meet the c,hallanges and take full advantage of the emerging trends In the economy In general and growth of Telecom Sector in partlcular, your Company has chalked out ambitious plans or expansion and diversification which include. a) speedy Installation of additional equipments toexpand installed capacity from 15 Lac CKM to 18 Lac CKM; (b) setting up of facilities for the manufacture of 40,000 FKM of Optic Fibre Cables to compete and remain ahead in the market; (c) diversification into the manufacture of Printed Circuit Boards; and (d) diversification into the areas of basic telecom services and value added services. The Company is thus having an exciting future and is expected to improve its performance further in the years to come. ACKNOWLEDGEMENTS I take this opportunity to thank the PSIDC, IFCI, IDBI, ICICI and the Banks for their continued support and co-operation. I would also like to compliment the Management Team of your Company led by Ms. Bubli Brar, Managing Director, under whose able stewardship the Company is making rapid strides year after year. All the employees of the Company also deserve our whole- hearted appreciation or the splendid work done by them. I also thank my esteemed colleagues on the Board for their wise counsel, guidance and support. Before I conclude, I express my gratitude for your gracious presence here this morning to participate in the proceedings and for you continued cooperation and support. P.S. BAJWA CHAIRMAN CHANDIGARH 31st August, 1994444