ITI Ltd
Directors Reports
Dear Members,
The Board of Directors of ITI Limited ("the Company" or
"ITI") hereby submits the report of the business and operations of the Company
along with the Audited Financial Statements (Standalone and Consolidated) for the
Financial Year (FY) ended 31st March 2023, Auditors report and comments on the Accounts by
the Comptroller and Auditor General (C&AG) of India.
As per the approved Revival Plan for ITI Limited by the Cabinet
Committee on Economic Affairs (CCEA) in February 2014, the Company has been sanctioned an
amount of Rs 4156.79 Crore. This package consists of Rs 2264 Crores in the form of equity
towards CAPEX fund and Rs 1892.79 Crores as grant-in- aid. The Company has received Rs
1132.56 Crore of the CAPEX Fund in the form of equity and the entire grant-in-aid in a
staggered manner from 2014-15 onwards to until financial year 2022-23.
A provision of Rs 360 Crore towards overdue statutory dues was included
in the Revival Plan (part of Rs 1892.79 Crore). The Company had received the Grant of Rs
360 Crore in a staggered manner commencing from the month of Feb 2016 and the final
instalment was released during March 2018. As a result, there was an increase in the
quantum of outstanding statutory dues liability by Rs 299.69 Crore as on 30th June 2018,
on account of delayed payment. In 2020-21 approval received for (Non Plan - Revenue)
Additional Relief of Rs 299.69 crore towards statutory dues, out of which Rs 120.40 Crore
was released during 2020-21 & 2021-22; Rs 25 crore received on 2nd April 2023 and
balance Rs 154.29 crore was received on 15th June 2023.
The Capex Fund has been invested for upgrading the manufacturing
infrastructure at various Units of the Company to cater to the need of emerging
technologies in Telecom industry. These projects have helped ITI regain its manufacturing
strength. The State-of-the-art infrastructure established under revival funds has boosted
the manufacturing strengths to cater for domestic market demands under "Make in
India" mission of Government of India.
FINANCIAL PERFORMANCE
The summarized standalone performance of the Company (Standalone basis)
for the financial year 2022-23 compared to the previous year 2021-22 is as under:
Rs in crore
| Sl.No. Particulars |
2022-23 |
2021-22 |
| 1 Sales including services |
1589 |
2077 |
| 2 Value of production |
1622 |
2097 |
| 3 (Loss)/Profit before tax |
(360) |
120 |
| 4 (Loss)/Profit after tax |
(360) |
120 |
| 5 Other Comprehensive income |
(61) |
(15) |
| 6 Total Comprehensive income |
(421) |
105 |
| 7 Financing expenses |
210 |
192 |
| 8 Depreciation |
49 |
51 |
| 9 Capital employed (Net Fixed Assets + Working Capital) |
2531 |
2657 |
| 10 R & D Expenditure |
14 |
15 |
CONSOLIDATED PERFORMANCE
The Consolidated Revenue from operations at Rs 1395 crores (PY Rs 1861
crore) reflect a decrease of 25% compared to the previous year. The profit before tax and
Profit after tax for the financial year 2022-23 were Rs (359.85) crore against Rs (118.71)
crore during the previous year.
OPERATIONAL PERFORMANCE:
The Company has achieved the turnover of Rs 1588.60 Crore during the FY
2022-23 against Rs 2077.48 Crores during the previous FY 2021-22.
PRODUCTION HIGHLIGHTS
ITI Limited is the leading provider of Electronic manufacturing i.e
Defence electronics products & systems. Our cutting-edge technology and solutions will
revolutionize the industry and take it to the next level. During the year, the Company has
Manufactured Encrytpor's for Defence, Laptop / PC, Solar Panels, Optical Fiber Cable,
High-Density Polyethylene (HDPE), Switched Mode Power Supply (SMPS), etc at its various
Units.
ORDER BOOK POSITION
The Order Book position of the Company as on 30th June 2023 stands at
Rs 11,460.14 Crores.
SIGNIFICANT ACHIEVEMENTS OF THE COMPANY
? ITI Limited has bagged a Purchase Order (PO) from BSNL worth Rs
2421.49 Crores for its 4G rollout under Reservation Quota (RQ) Order in the West Zone. The
scope of work includes Planning, Engineering, Supply, Installation, Testing,
Commissioning, integration and annual maintenance of 4G Mobile Network for 23,633 sites in
West Zone of BSNL Network.
? ITI Limited, Palakkad Plant has been appreciated by ISRO for
realizing the flight packages with respect to launch of LVM3 M2/OneWeb India- 1 Mission in
a time bound manner meeting all Vikram Sarabhai Space Centre (VSSC) quality norms. The
launch of LVM3 M2/OneWeb India- 1 Mission was successfully accomplished on October 23,
2022 and all 36 Satellites were placed into their intended orbits precisely. This was made
possible by ISRO with the participation of many external partners ITI Limited, Palakkad
was one major industry partner which VSSC is depending for the realization of Avionics
packages. Various packages fabricated by ITI Limited, Palakkad have successfully flown in
LVM3 M2 Mission.
? Palakkad plant is involved in ISRO's prestigious Chandrayaan mission
LVM3-M4 which is launched on 14th July 2023. Out of the total packages in the mission, 55
nos of packages are realized by ITI Palakkad team.
? ITI Limited, Naini has signed Non-Disclosure Agreement with Madhya
Pradesh Poorv Kshetra Vidyut Vitran Company Limited (MPPKVVCL), Jabalpur for setup of
Rooftop Solar plant of 1.3 MW capacity.
? ITI Limited, Palakkad Plant has received the Purchase Order from
Kerala Infrastructure and Technology for Education (KITE) and Kerala State Electronics
Development Corporation for supply of 9223 Nos of ITI Made Laptop.
? ITI Naini Unit has been selected as project executing agency by Bihar
Renewable Energy Development Authority (BREDA) for implementation of Pradhan Mantri
Grameen Solar Street Light Scheme in Bihar. Under the scheme, ITI has been awarded total
11 Districts and received order for supply of 40830 Nos solar street light system.
? ITI Limited Mankapur plant has got an order from C-DOT for the supply
of Optical Network Terminal (ONT) 23 to M/s Railtel Ltd for the quantity of 40,000 Nos.
? ITI Limited Mankapur plant has got an order from BSNL for the supply
of Optical Line Terminal-4P for the quantity of 1500 no.s including 5 years AMC services.
? ITI Limited Mankapur Plant has developed in house Product as
"24Fibre FDMS (Fiber Distribution Management System)". This product has been
designed for the supply of TANFINET Project.
? ITI Limited has completed manufacturing of Radio Access Network (RAN)
with C-DOT Technology. B28 & B8 band RAN Equipment have been supplied to Ambala &
Faridabad sites for Proof of Concept in BSNL network. RAN in other Bands 1, 41 and 3 are
in process of manufacturing. ITI has also planned to deploy B28 RAN for POC with Indian
Railways.
? Electro Magnetic Interference/ Electromagnetic Compatibility Lab is a
part of the Telecom Testing Centre which has been built at Bangalore Plant to meet the EMC
requirements of the Telecom Equipment launched in the market. This lab can test
Industrial, Scientific, Medical and IT equipment for Emission and Immunity requirements of
Telecommunication Engineering Centre as per International Standards. MIL-STD-461 is
followed for Defence and Commercial equipment can be tested as per CISPR 11/22/15/32.
? This lab is now upgraded to Mil Standard-461 E/F/G Test systems to
conduct:
1. CE101 (Conducted Emissions, Power Leads, 30 Hz to 10 KHz)
2. CE102 (Conducted Emissions, Power Leads, 10 KHz to 10 MHz)
3. CS101 (Conducted Susceptibility, Power Leads, 30 Hz to 150 KHz)
4. CS109 (Conducted Susceptibility, Structure Current, 60 Hz to 100
KHz)
5. RE101 (Radiated Emissions, Magnetic Field, 30 Hz to 100 KHz)
6. RE102 (Radiated Emissions, Electric Field, 10 KHz to 18 GHz)
7. RS101 (Radiated Susceptibility, Magnetic Field, 30 Hz to 100 KHz)
8. CS114 (Conducted Susceptibility, Bulk Cable Injection, 10 KHz to 200
MHz)
9. CS115 (Conducted Susceptibility, Bulk Cable Injection, Impulse
Excitation)
10. CS116 (Conducted Susceptibility, Damped Sinusoidal Transients,
Cables and Power Leads, 10 KHz to 100 MHz)
Details of Turnover achieved in FY 2022-23 Vs FY 2021-22:
(Value in Rs Crore)
| Sl.No Products/Projects |
2022-23 (including GST) |
2021-22 (including GST) |
| 1 ASCON PH IV |
389.96 |
599.57 |
| 2 Corp Mktg & MSPs |
339.34 |
744.24 |
| 3 Mahanet |
313.00 |
283.51 |
| 4 Tanfinet |
140.89 |
- |
| 5 Gujnet |
79.56 |
63.08 |
| 6 NFS Project |
78.76 |
104.88 |
| 7 GSM SZ AMC |
62.52 |
98.42 |
| 8 3D Printing, Aadhar based Business/ Mini PC/ Component
Screening/ E-Governance projects/Test labs/ Reliability labs/E-Seva/Telephones/ Cont. Mfg/
Smart Cards/Energy Savings/ Batteries/GSM Franchise/ Banking Products/SNVM/SNDM/AMC |
42.75 |
22.08 |
| 9 Data Centre |
22.97 |
20.41 |
| 10 AMC for MLLN/SSTP |
18.72 |
18.86 |
| 11 Solar Panel/Solar Street Light |
18.20 |
29.98 |
| 12 Airtel FTTH |
17.38 |
5.97 |
| 13 Defence Business & AMC/ ASCONAMC |
14.16 |
34.39 |
| 14 GPON (ONT, OLT, SPV and I&C) |
12.32 |
8.62 |
| 15 SMPS |
9.34 |
19.92 |
| 16 USOF - 4G by Start ups |
7.97 |
- |
| 17 TPA for Bharat net Project in Jharkhand, Odisha &
Satellite |
5.93 |
9.18 |
| 18 OFC - Railways & MTNL |
5.06 |
5.08 |
| 19 HDPE Pipe Mfg/Water Pipes |
4.12 |
0.41 |
| 20 BSNL 4G PoC/NGN AMC/OCB AMC/Wifi Hotspots |
4.00 |
8.21 |
| 21 Bharatnet A&N |
1.65 |
0.67 |
| Total |
1588.60 |
2077.48 |
CHANGE IN SHARE CAPITAL/ISSUE OF SHARES:
There was no change in the Authorized Share Capital of the Company
during the year 2022-23.
During the financial year 2022-23, pursuant to the BIFR order dated
08thJanuary 2013, the Board of Directors had allotted equity shares to the President of
India on preferential basis against CAPEX received from Government of India, details of
which are as follows :
| Date of allotment of equity shares |
No. of Equity shares issued |
Allotment price |
Capex Receipt (in Rs) |
| 25.05.2022 |
83,21,279 |
Rs 86 (Rs 10 face value and at a premium of
Rs 76) |
71,56,30,000 |
| 28.09.2022 |
77,33,204 |
Rs 103.45 (Rs 10 face value and at a premium
of Rs 93.45) |
80,00,00,000 |
Accordingly, during the financial year 2022-23, the paid up Equity
Share Capital has increased from Rs 9,33,52,28,690 to Rs 9,49,57,73,520.
The Company had received Rs 107 crore as Capex from Government of India
on 23rd March 2023, against which the Board of Directors in its meeting held on 11th May
2023 had allotted 1,13,09,586 equity shares at Rs 94.61 (Rs 10 face value and at a premium
of Rs 84.61 per share) to the President of India on preferential basis.
During the year under review, the Company has not granted stock options
or sweat equity shares. As on 31st March 2023, except for Smt S Jeyanthi who holds 50
equity shares of the Company, none of the Directors of the Company hold any shares of the
Company.
DIVIDEND
As the Company had incurred loss during the year 2022-23 and still has
accumulated losses of previous years, the Directors are not in a position to recommend any
dividend for the year 2022-23.
RESERVES
As the Company still has accumulated losses, it has not transferred any
amount to General Reserve.
OPERATIONAL PERFORMANCE OF PRODUCTION PLANTS AND SERVICE UNITS BANGALORE
UNIT:
I. PERFORMANCE
During FY 2022-23, Bangalore Unit has achieved the Turnover of Rs
414.48 Crore. The turnover mainly consists of Manufacturing, Various Services and
Projects.
II. MAJOR HIGHLIGHTS
(i) Encryption Products
The Secrecy products for Defence Communication Networks and other
Ministries are being designed by our R&D and manufactured, supplied & maintained
by ITI for a long time. ITI has been the pioneer in this field. The products have evolved
over the years in tune with the evolution in the digital communication technology. There
are major requirements of encryption products for Defence for their Network for Spectrum,
(NFS) Army Static Switched Communication Network (ASCON) etc.
Bangalore Unit has Designed, Manufactured and Supplied 51 Nos. of High
Throughput Terminal End Secrecy Devices (SESD) and 26 Nos. of Next Generation Network
(NGN)- Bulk Encryption Unit (BEU) sub racks as part of Defence Communication Network.
(ii) Telephones
Plant has Supplied 302 Nos of Field Telephone (5C) and Executive
Telephone System (1+1) to Ashok Leyland, GRSE and BSNL.
(iii) 4G RAN Manufacturing
Bangalore Unit has manufactured and supplied C-DOT 4G RAN equipment
(Band 28 & Band 8) to PoC Site, Ambala.
(iv) 3D Printing
3D Printing has been providing services to internal as well as external
customers Bagged order for manufacturing of force & moment low-speed wind tunnel
5thgeneration Fighter jet models, like Twin Engine Deck Based Fighter (TEDBF) &
Advanced Medium Combat Aircraft (AMCA) from our esteemed customers Aeronautical
Development Agency & IIT-Kanpur.
(v) Reliability Engineering Lab
Reliability engineering Lab is equipped with various Environmental Test
chambers and has been providing services to internal as well as external customers Lab
facilitates to conduct all environmental tests as per QM333, JSS 55555, MIL Standard and
Customer Test Requirement.
(vi) Telecom Testing Lab (TTL)
NABL accredited EMI/EMC lab is a part of the Telecom Testing Centre
which has been built at Bangalore Plant to meet the EMC requirements of the Telecom
Equipment launched in the market. This lab can test Industrial, Scientific, Medical and IT
equipment for Emission and Immunity requirements of TEC as per International Standards.
MIL-STD-461 is followed for Defence and Commercial equipment can be tested as per CISPR
11/22/15/32.
TTL caters to external customers ranging from commercial,
communication, medical, industrial, IT, automobiles and domestic sectors.
(vii) Defence AMC & Non AMC card Repairs
Bangalore Unit is also executing the AMC for Ananda BEU MK II, EDUs,
STM 1 and STM 4 secrecy Equipment's supplied to Defence Customers all over India.
(viii) Global System for Mobile Communication (GSM) South Zone AMC
ITI had successfully completed the BSNL GSM project of 9ML GSM
equipment in BSNL South Zone for around Rs 2940 Crores in various BSNL -South Zone Circles
namely - AP, Telangana, Chennai, Karnataka, Kerala and Tamil Nadu Circle and have executed
the mandatory AMC. On completion of mandatory Annual Maintenance Contract, BSNL has
extended the AMC up to Dec- 2021 for Rs 70 Cr and further extended the order worth Rs 65
Crore for one more year i.e upto December 2022 which ITI Bangalore Plant has executed
successfully. ITI Bangalore plant has also received confirmed extension order for 2023 AMC
for BSNL South Zone Circles.
(ix) Data Centre and IT Business
Looking into high demand for data Centre business and the expected
growth in India, the new Data Centre has been established, under the revival plan with
1000 Racks capacity at Bangalore Unit having Tier III certification i.e. ANSI/TIA-942-B.
The TIA-942 Certification Program enables data centres to be reviewed and certified for
conformity to the requirements of the globally-recognized ANSI/TIA-942 standard, providing
greater assurance to customers and stakeholders.
The Data Centre is having ISO 20000-1:2011, ISO 27001:2013, ISO 27017:
2015 & ISO 27018:2019 certification. ITI Data Centre is also Empanelled Cloud Service
Provider with MeitY (Ministry of Electronics and Information Technology). ITI has obtained
Capability Maturity Model (CMMi) Level 3.
ITI Data Center has the capability to offer a wide spectrum of service
portfolios include High density hosting services, Cloud services, Managed security
services, on demand services, Professional services, Security Operations Centre (SoC) and
Managed IT services.
The Company is providing IT services like Aadhar authentication
services, e-KYC services, core banking applications, ERP services, mobile wallet
application, e-Seva services etc. through ITI Data Center.
(x) Security Operations Centre (SoC)
The function of the SOC is to monitor, prevent, detect, investigate,
and respond to cyber threats around the clock. SOC teams are responsible for monitoring
and protecting the organization's assets including intellectual property, personnel data,
business systems, and brand integrity. The SOC team implements the organization's overall
cybersecurity strategy and acts as the central point of collaboration in coordinated
efforts to monitor, assess and defend against cyber attacks.
Various services provided by the SoCaaS (SOC as a Service) are:
i) Data Loss Prevention
ii) Security Information and Event Management (SIEM) & User and
Entity Behaviour Analytics (UEBA).
iii) Vulnerability and Penetration Testing (VAPT)
iv) E-Mail Security
v) Firewall With DDOS (Distributed Denial-of-Service)
vi) Network Access Control (NAC)
vii) Identity & Access Management (IAM)
viii) Endpoint Detection And Response (EDR)
(xi) ITI e-Seva
An Integrated e-Services Platform to deliver more than 40 e- services
to citizens under CSC Scheme.
Impact on Social Livelihood:
i. Providing self-sustainable employment directly or indirectly to more
than 500 entrepreneurs.
ii. ITI e-Seva through its presence in various geographical region of
Urban and Rural areas of Karnataka & UP state, providing all e-Service to citizen at
door step.
(xii) Major Research & Development (R&D) initiatives taken by
the Company
Company's R&D Philosophy is to enhance its pre-eminence in products
/ services of Defence Electronics and other chosen fields through Research &
Development. Company's R&D strives for development of new products built with
cutting-edge technology modules.
R&D located in Bangalore Unit is designing & developing
Communication Equipment to support In-House manufacturing and also keep abreast with State
of the Art Technologies in the field of Electronics & Communications. R&D has core
strength in design & development of Encryption systems to secure Communication
Networks for defence forces, MHA, NTRO, etc. ranging from 8 Kbps to 10 Gbps data rate over
different media and also in development of Network solutions.
The necessary infrastructure to aid design & development is
available in the form of latest Test Instruments, Software design tools, Computer-Aided
Design (CAD) design tools, reliability lab, EMI/EMC test lab and Telecom testing lab.
Major R&D products/services in the following areas:
a) Encryption Systems for Defence, MHA etc.
b) Electronic Voting Machine (EVM)
c) Digital Mobile Radio (DMR) system
d) Power Supply Modules
e) Network Solutions for Communication Network
f) Getting the CPC approval for Crypto products with proprietary
Algorithms.
The successful products/solutions developed/Productionised in Financial
Year 2022-23:
Products/Services:
a) Multi Post Electronic Voting Machine (EVM)
b) 1GE IPE for IB-MHA (Evaluated by DRDO)
c) Development of spare Algorithm for TESD/SESD, 10/100 IPE, NGN and
Flexi BEU of DCN project Evaluation completed by DRDO.
d) E1 Encryptor for Eastern command (Army).
The Encryption products have successfully undergone Field trails,
testing & Evaluation by customers.
PALAKKAD UNIT
I. Performances
In the FY 2022-23, Palakkad Unit has achieved the Turnover of Rs 57.69
Crore.
II. Major highlights
(i) Laptop
After successfully establishing the ITI Smaash brand in the Micro PC
segment, ITI Palakkad has now ventured into manufacturing of ITI Smaash brand laptops. In
the fiscal year 2022-23, the Palakkad Unit has supplied 9223 no's of laptops, which
includes the prestigious supply of 6600 laptops to KITE (Kerala Infrastructure and
Technology for Education). The ITI Smaash laptops have received great appreciation from
major customers like KITE and KSEDC (Kerala State Electronic Development Corporation).
These laptops carry national and international certifications such as Conformite
Europeenne (CE), Federal Communications Commission (FCC), Restriction of Hazardous
Substances (RoHS), Bureau of Indian Standards (BIS), and Bureau of Energy Efficiency (BEE)
making them significant addition to ITI's portfolio.
The Memorandum of Understanding (MoU) with Intel Corporation for market
analysis and product development, as well as with Microsoft Corporation for OEM products,
remains strong in both the PC and Laptop segments.
(ii) Smaash PC
ITI's Smaash branded Mini PCs have strengthened its presence in the
market through technological upgrades, incorporating newer generation processors. These
compact computers, known for their energy efficiency and small form factor, are
complemented by the Smart Power Station, a green energy solution that functions as a UPS
and accepts power from both solar and grid sources. This innovative combination allows for
minimal grid reliance and significant energy savings. Furthermore, these devices hold
international certifications such as CE, FCC, RoHS, BIS, and Energy Star.
The Micro PC business has expanded its reach to Karnataka state,
supplying PCs to 17 districts of Department of State Educational Research and Training
(DSERT)/ Director of Public Instructions (DPI). The product has garnered attention from
esteemed customers including Kerala State Electronics Development Corporation (KSEDC),
Kerala e-Health, AIR India, NIC, Kerala Forest Department, National Urban Health Mission,
Calicut University, Kannur University, and various educational institutions.
In addition to Mini PCs, the Palakkad Unit offers a range of turnkey
solutions associated with this product, such as Smart Classrooms for schools and
universities, HCI (Human-Computer Interaction) solutions, and Student Lifecycle Management
Systems for universities.
(iii) Vikram Sarabhai Space Centre (VSSC) Business
ITI Palakkad Unit is associated with VSSC, Thiruvananthapuram in
realization of electronic packages for various launch vehicles as well as screening of
electronic components/ Packages. The association started with the establishment of Space
Electronics Fabrication Centre (SEFC) at ITI Palakkad for electronic assembly for Space
Application in the year 2010 and expanded over a decade in to wide range of activities.
The centre is approved for the realization of various Electronic Packages used in launch
vehicles which include operations such as SMD Assembly & Manual Assembly, Conformal
Coating, Card level testing, Integration, Integration testing, In line QC, Screening of
Components, Test & Evaluation (T&E) of assemblies and multi stacks. Customized
test jigs, Burn-in boards, Vibration fixtures and software programs are developed in-house
for each assembly/ components individually, meeting all the critical parameters identified
by VSSC, for completion of item wise qualification procedures. ITI Palakkad is the only
work centre accredited by VSSC for RF Package Assembly and Testing.
ITI Palakkad is having business association with 3 units of ISRO namely
VSSC, Liquid Propulsion System Centre (LPSC) and Mechanisms and Vehicle Integration
Testing (MVIT) all of which are located at Thiruvananthapuram and are engaged in the
Manufacturing, Testing and Integration of all Launch Vehicles - PSLV, GSLV, GSLV Mark III
etc. used in various space missions of ISRO. Orders are being received and executed
continuously from the year 2010-11 onwards.
Recently our facility has been qualified for screening and package
realization of Gaganyaan mission project of ISRO, against which pilot quantities are
screened/ assembled and delivered successfully. Expansion of scope of programme is being
done continuously by developing test facilities for more devices.
Officials engaged in all these activities are qualified through highly
stringent training and tests imparted by VSSC. The work is carried out in the contract
manufacturing mode with all required components being provided by VSSC, as free issue
materials (FIMs).
More than 1 Lakh electronic components are screened from this centre
and more than 2500 flight packages manufactured by ITI are successfully used in various
launch vehicles - GSLV, PSLV and GSLV Mark-III- of ISRO including the prestigious
Chandrayaan mission LVM3-M4 launched on 14th July 2023. Out of the
total packages in the mission, 55 nos of packages are realized by ITI Palakkad team.
The GSLV Mark III launched on 23rd October 2022 with 36 satellites on
board and which successfully placed all these satellites in the right orbits with extreme
precision in LVM 3 M2/ One Web Indian-1 Mission had on board a total of 47 packages
executed by ITI Palakkad Plant and our valuable contribution in the mission has been
acknowledged and appreciated by ISRO and DoT.
(iv) Smart Banking Card
ITI Palakkad Unit is having state of the art infrastructure in line
with technical specifications for Payment Card Industry (PCI). ITI is the only PSU having
the accreditation for Rupay chip card personalization from National Payments Corporation
of India (NPCI). The infrastructure includes modern manufacturing equipment for Smart Card
Assembly and customization for milling & embedding, personalization etc.
ITI Palakkad has executed the pilot order from SBI for the supply of 2
Lakhs Rupay cards and 4.1 Lakh Election ID Cards for Election Commission of Kerala. ITI is
also pursuing business with other Public Sector banks and other customers for getting more
orders.
(vi) High-Density Polyethylene (HDPE) Duct Manufacturing
Anticipating increased demand of HDPE conduits for OFC in the country
considering the government focus on providing internet connectivity for all villages, ITI
Palakkad has established 2 lines of HDPE machinery with an annual capacity of 8000 KM.
While the HDPE Pipe Plant has got TSEC for manufacture of 40/33 mm PLB HDPE Duct and
contributed to the requirement of more than 7000 KM of duct against Mahanet, Gujnet,
Tanfinet, Bharatnet A&N and ASCON Phase IV Projects in addition to supplies for
Railways and Department of Atomic Energy, the manufacture and supply of 2000 KM of Duct
for ASCON Project in a timely manner with highest level of quality won accolades from the
Indian Army. In order to enlarge the product portfolio, ITI Palakkad has started
manufacturing of HDPE Pipe for Water Transport as well which will be expanded in the years
to come.
(vii) Managed leased Line Network (MLLN)
ITI has been the leader in supplying MLLN products and services,
including turnkey solutions for supply, installation, integration, commissioning,
operation and maintenance of Network Equipment to BSNL/MTNL since 2002-03. The existing
MLLN networks has been installed and maintained by ITI till date. ITI Palakkad has
executed AMC orders worth Rs 18.72 crore from BSNL for the AMC (card repair and technical
support) extended to MLLN projects for BSNL.
(viii) BharatNet Phase-I in Andaman & Nicobar
The scope of this project involves network design and planning, supply,
deployment and commissioning of fibre optic network for data connectivity for gram
panchayats across Andaman & Nicobar Islands under BharatNet Phase-I project of BBNL.
MANKAPUR UNIT
I. Performances
In the FY 2022-23, Mankapur Unit has achieved the Turnover of Rs 49.36
crore.
II. Major Highlights
i. Fibre Distribution Management System (FDMS)
FDMS product has been designed by Mankapur Unit for ASCON and Tanfinet
Projects and also got BSNL Certificate (TSEC). FDMS product has been
developed/tested/manufactured and passed by PDI army team without any obstacle/delay.
Total 656 Nos FDMS have been manufactured and dispatched to different sites under ASCON IV
and Tanfinet projects.
ii. HDPE Duct Manufacturing
Mankapur Unit has signed an agreement from M/s Katariya Pastics Pvt
Ltd. Mankapur plant has got the BIS certification & started contract manufacturing of
water pipes/Telecom duct since Dec 2022. Developed END CAP used as HDPE duct accessories.
iii. 4G Manufacturing
Mankapur Unit is fully ready for manufacturing of 4G RRU/ any types of
electronic products/ Contract manufacturing all the required machines have been procured,
installed and commissioned.
iv. Optical Network Terminal (ONT)-23
Mankapur Unit has got an order from C-DOT for the supply of ONT23 to
Railtel for the quantity of 40,000 nos.
v. Optical Line Terminal (OLT)-4 port
Mankapur Unit has received an order from BSNL for the supply of OLT-4P
for the quantity of 1500 no's including 5 years AMC services.
vi. Third Party Audit (TPA)
Mankapur Unit has taken up TPA activities for implementation of
BharatNet in Jharkhand for Jharkhand Communication Network Limited, Odisha for Odisha
Power Transmission Corporation Limited and TPA -VSAT in Manipur and Tripura.
vii. Diversified products
Mankapur Unit is doing business in Diversified Products also. The
products, which are developed and manufactured In-house like NCM (Note Counting Machine),
SNVM- FLORA (Sanitary Napkin Vending Machine), SNDM- FAUNA (Sanitary Napkin Disposal
Machine), FMVM-KAVACH (Face Mask Vending Machine), and FMDM-CONA (Face Mask Disposal
Machine).
viii. Skill development
Employee Development Centre (EDC) started OJT (On Job Training)
programs for ITI (Industrial Training Institute) Students. Employee development Centre is
also involved in conducting Course on Computer Concepts (CCC) examination at various
centres in UP through National Institute of Electronics & Information Technology,
Gorakhpur.
ix. Safety Award
Every year National Safety Awards are given by the Ministry of Labour
and Employment, Government of India, based on the performance of Companies in the area of
safety and environment. During FY 2022-23, Mankapur plant has received Runner up award.
RAE BARELI UNIT
I. Performance
In the FY 2022-23, Rae Bareli Unit has achieved the Turnover of Rs
52.87 Crores.
II. Major highlights
i. Optical Fibre Cable
The Indian optical fiber cable market is gaining traction. The growth
is driven by continued investments being made by the Indian government in developing OFC
network infrastructure, in various projects. There has been increased adoption of Fiber-
to-the-Home (FTTH) connectivity owing to government initiatives such as Digital India,
Smart Cities, and Bharatnet Project etc. Moreover, the growing number of data centres in
India will fuel this growth further.
The Company have been making great efforts to meet domestic demand for
optic fiber cable with the installed capacity of 30,000 KMs per annum. During FY 2022-23,
Rae Bareli unit manufactured OFC for ASCON, TANFINET project and Railways.
ii. Gigabit Passive Optical Network (GPON)
GPON technology offers an excellent mix of triple play services (voice,
data & video) to end users Rae Bareli Unit has State-of- art manufacturing facility
for GPON-OLT & ONT systems.
iii. High-Density Polyethylene (HDPE) Duct Manufacturing
Rae Bareli Unit is equipped with excellent manufacturing infrastructure
for production of HDPE Ducts with annual capacity of 28,000 KMs.
During the FY 2022-23, Rae Bareli unit manufactured HDPE duct for
Vodafone.
iv. Switched-Mode Power Supply (SMPS)
Rae Bareli Unit received orders from various BSNL circles across India
for supply of multi configuration SMPS Power Plants of 393 no's during FY 2022-23.
NAINI UNIT
I. Performance
In the FY 2022-23, Naini Unit has achieved the Turnover of Rs 18.20
crore.
II. Major highlights
i. Solar Panel
The Government has set an ambitious target of generating 450 GW of
renewable energy by 2030. Naini Plant has state-of art manufacturing facility for Solar
Panel Manufacturing with annual capacity of 18 MW.
ITI has been awarded work order from BESCOM for implementation of 2000
KW On grid Solar Rooftop Solar project in North & South Bangalore.
Received work order from NTPC, Vindhyachal for installation of 150KW on
grid Rooftop Solar project & NTPC, Bombaigaon, Assam for installation of 265 KW On
grid Rooftop Solar project.
Enlisted in Approved List of Model and Manufacturer, Ministry of New
& Renewable Energy.
Successfully revalidated the BIS certification for Poly crystalline
Solar Modules up from 40Wp to 325Wp validity up to July-2024.
Successfully installed 10 KW Off-grid Rooftop Solar projects in Army
Public School Jhansi and RTO, Jaipur, Bhubneshwar.
Supplied 4500 nos of 60Wp SPV panel to BBNL through GeM contract
ii. LED Street Light
ITI Naini Unit has been selected as project executing agency by Bihar
Renewable Energy Development Authority (BREDA) for implementation of Pradhan Mantri
Grameen Solar Street Light Scheme in Bihar. Under the scheme, ITI has been awarded total
11 Districts and received LOI for supply of 40830 Nos solar street light system.
Signed MoU with M/s Patanjali Renewables for implementation of BREDA
Solar Project.
ITI has successfully completed Supply & installation of 7252 Nos
Solar Street lights System in BREDA Project.
SRINAGAR UNIT:
I. Performance :
In the FY 2022-23, in Srinagar Unit, Skill Development Training is
being provided to students in different fields like Optical Fibre Cable
Technician/Splicer, Fashion Designing, Data Entry Operations & Medical Lab Technician
etc.
NETWORK SYSTEMS UNIT (NSU)
I. Performance
NSU is headquartered at Bangalore with regional offices spread across
all over India. NSU has achieved proficiency in Project management, Turnkey Project
implementation and maintenance services and is committed towards credible and timely
execution of the projects/ services.
The turnover achieved by NSU for the FY 2022-23 is Rs 656.66 Crores and
the details are as enumerated below: -
(a) Projects
(i) ASCON-IV projects order received from Ministry of Defence, GoI
(ii) GujNet project order received from GFGNL for Broad Band
connectivity across the Gram Panchayats in the state of Gujarat.
(iii) TANFINET project for internet connectivity on IPMPLS at Tamil
Nadu
(b) Services
(i) ASCON phase III-AMC orders for Defence
(ii) Tanfinet orders
(iii) Installation and Commissioning of GPON equipment supplied to BSNL
(iv) Universal Service Obligation Fund (USOF) BharatNet Project
(v) Airtel FTTH ROLLOUT project
(vi) OCB -AMC
II. PROJECTS EXECUTED DURING THE FY 2022-23
i. Army Static Switched Communication Network (ASCON) Phase-IV
ITI was awarded the prestigious project of National Importance
(ASCON-IV) on 1st October 2020 for the Indian Army. This project involves developing a
fully secured strategic state of art communication network with a special focus towards
the borders (spread across Northern, North-Eastern and Western regions of India). The
project scope involves laying OFC, establishing IP MPLS Network, Microwave, Satellite,
Mobile Nodes, and construction of buildings and towers. The scope of the Project also
involves integration of this communication network with future and legacy Army network
i.e., Network for spectrum (NFS), Army WAN, ASCON Phase III.
AMC for ASCON III: ITI had successfully executed the first 3 phases
of ASCON project and presently is involved in maintenance of these ASCON assets. The scope
of service under this project involves repair and maintenance of secrecy cards,
maintenance of OFC routes, etc.
ii. Gigabit Passive Optical Network (GPON):
NSU has installed and commissioned GPON equipment against the BSNL and
BBNL orders, all over India.
iii. BharatNet Phase-II in Gujarat (GujNet)
ITI had received order from Gujarat Fiber Grid Network Limited (GFGNL)
towards implementation of Turnkey project for Broad Band Data Connectivity to Gram
Panchayats in the state of Gujarat under Bharat Net Phase II Project. The project includes
laying of optical fiber cables (OFC), supply of DWDM equipment, optical transmission and
access equipment and other related products as well as maintenance services. It also
includes survey, design & plan, supply, installation, testing, commissioning, Optical
Fibre Cable laying, end-to-end integration to provide 100 Mbps Bandwidth to 3925 GPs of 12
District of Gujarat State against Package-A of GFGNL's BharatNet Project Phase-II (BBNL)
along with Additional 336 GPs and Operations & Maintenance for 3 Years.
iv. BharatNet Phase-II in Tamil Nadu (TanfiNet)
ITI received Work Order for Planning, Survey, Supply, Installation,
Commissioning, Testing End to End Integration Operation & Maintenance of Optical fiber
network and Electronics for Bharat Net Phase - II in Tamil Nadu for Package-D.
Tamil Nadu Fibre Net Corporation Ltd. (TANFINET), is a Special Purpose
Vehicle (SPV) formed by the state of Tamil Nadu, as the nodal agency towards
implementation of the BharatNet
Phase II project. In TANFINET, under phase II, all the 12,524 Gram
Panchayats (GPs) in the State will be connected through Optical Fiber Cable (OFC) both in
Aerial/Underground mode. The GPs are divided into Four Packages i.e., A, B, C, D for
effective network rollout by ensuring parallel execution across Packages.
ITI Limited bagged Network Rollout of Package D consisting of 109
Blocks and 3103 GPs spread across 10 Districts, which also includes Operation &
Maintenance (O&M) for three years from the date of "GO LIVE". The scope also
includes Planning, Survey, Design, Supply, Installation, Commissioning & Testing of
active & passive network infrastructure at all locations across the districts for the
respective Blocks.
v. BharatNet Phase-I in Andaman & Nicobar
The scope of this project involves network design and planning, supply,
deployment, and commissioning of fibre optic network for data connectivity for gram
panchayats across Andaman & Nicobar Islands under BharatNet Phase-I project of BBNL,
covering 3 Districts, 7 Blocks and 66 GPs of Andaman & Nicobar Islands as a part of
Digital India program of Government of India (GoI).
vi. BharatNet Phase-II in Maharashtra (MahaNet)
The scope of the project includes connectivity to GPs using MPLS using
Aerial and UG Cables in Maharashtra state (Package A & C).
(a) Package A: T&D of 7640 kms is completed out of 8540 Kms; And
12121 Kms of cable blowing and stringing (UG & OH) completed out of 17429 Kms; 2099
No's Routers installation done out of 4003 No's of Routers Also, 2003 No's of GPs Lit up
out of 4003 No's of GPs.
(b) Package C: T&D of 10865 Kms completed out of 11132 Kms; 18673
Kms of cable blowing and stringing (Underground-UG & Overhead-OH) completed out of
20741 Kms; 3622 No's of Routers installation done out of 4550 No's of Routers; Also, 3588
No's of GPs Lit up done out of 4550 No's of GPs.
vii. Airtel Project
ITI Limited is working with Private telcos to leverage local firms and
expertise in all business verticals. Towards this end, India's second-largest service
provider, Bharti Airtel, awarded OFC works to ITI Limited, on 28thAugust 2020. This
project, National Long Distance (NLD) services involves construction of around 500 Km of
underground optical fibre network for intercity back bone transport layer fibre connecting
sixty-two nodes across six routes in state of Odisha. It also involves Fibre to the Home
(FTTH), wherein around 380 Km of aerial and underground optical fibre network connectivity
is to be provided to cover more than 37000 home Connections across 7 major cities in
India.
viii. Network for Spectrum (NFS)
NFS is a strategic communications network project to develop and
install an OFC network to be owned and operated by the Defence services under the Project
Implementation Core Group (PICG) of the Ministry of Defence. NFS involves establishing an
exclusive OFC-based nationwide optical backbone for 414 defence sites & access
networks at 219 army sites. NFS project comprises all Optical Fibre Cable (OFC) routes,
aggregating to 57,015 km, which is divided into seven packages. ITI has an order for
laying optical fiber cable under the NFS project for the Indian defence forces in the
Eastern and North-Eastern regions (Package G & F).
ix. Universal Service Obligation Fund (USOF)
Department of Telecommunications has signed an agreement with ITI
Limited and BSNL to fund the pilot projects of E-band, Long Term Evolution (LTE)
indigenous technologies including integration of 4G/5G prototypes with C-DoT core to
enable development and hardening of these technologies. ITI had received a work order from
BSNL for execution of Pilot Projects for last mile Broad band connectivity in uncovered
villages under USOF.
MARKETING SERVICES AND PROJECTS (MSP)
The total turnover from the Corporate Marketing unit for the year
2022-23 was
Rs 339.34 Crores details of which are as follows :
• All MSPs turnover - Rs 220.55 Crore
• Turnover from Projects: (IAF I & II) - Rs 118.79 Crore
Important projects of MSPs are highlighted below:
• Hoisting services of Integrated Universities Management System
(IUMS) for HP University, Guwahati University, Chaudhary Ranvir Singh University Jind,
Gurugram University, Maa Shakumbhari University, B.N.Mandal University.
• Entrance Exam solution and Barcoding Decoding and answer view
solution to Chaudhary Charan Singh University Meerut.
• Annual Maintenance Contract for Distributed Denial of Service
project of BSNL
• E-tendering.
• Implementation of projects for IAF for Data Centre and 4G/5G
network.
• UP Vidhan Sabha Project for Digital Library & Communication
System.
• Regional Centre for Urban and Environmental Studies for Geo
Information System project.
• Uttarakhand Building and Other Construction Workers Welfare
Board project.
• UP Minority Commission (Smart Class works) Project.
• High Court Allahabad for network solution.
• Uttar Pradesh Rajkiya Nirman Nigam for IT-Product
• Uttarakhand Forest Development Corporation for Uttarakhand Van
Vikas Management System -AMC
• Network Management System for BSNL
• Central Control Monitoring System for EESL
• CCTV for Yarigudda Temple Development Authority
• Finance Management System
• Geo Fencing
• Solid Waste Management
• Webcasting of Urban Local Body election at Bihar
• Southern Railway Project of OFC Cable laying and Provision of
VSS work
• Aadhaar services to banks
• Switch Mode Power Supply Repairs to BSNL SSAs
• Indian Business School (Vodafone, Airtel)
• IT and IOT supply and solutions
• Orissa Mining Corporation Project.
• Bengaluru Electricity Supply Company limited Project.
• Odisha Computer Application Centre Project.
• Broad Band Network Gateway Project.
• Driving License and Registration Certificate Project.
Efforts undertaken by Corporate Marketing during year 2022-23:
• ITI Limited participated in BSNL tender of 4G mobile network in
the month of November and December 2022. After multiple negotiation with BSNL, the Company
has received an order from BSNL for the Planning, Engineering, Supply, Installation, and
Testing & Commissioning of a 4G mobile network in the West zone of BSNL for value of
Rs 2421.49 Crore in the month of May 2023.
• ITI received an order for the supply of GPON 4 Port Optical Line
Termination Equipment - 1500 Nos. from BSNL.
• Empanelment with Vodafone as a supplier for the supply of HDPE
Duct & OFC. Vodafone order received for PLB HDPE pipes.
• OFC laying for Airtel Odisha in tribal area.
• GeM bids/tenders pertaining to OFC and won for 7059 km.
• MSP MIS portal is developed for better coordination among MSPs.
• GeM Bids/Tenders pertaining to SMAASH PC 2167 no & Laptops-
9220 no.
Participation in Exhibitions:
During the year 2022-23, the Company has participated in following
exhibitions for showcasing its products and to increase the visibility of the products
manufactured by the Company.
• Aero India Show 2023, Bangalore
• Indian Mobile Congress New Delhi
• Bengaluru Tech Summit Bangalore
• India Energy Week Bangalore
• UP Global Investors Summit Lucknow
• International IETE Summit Bangalore
• ITU Workshop on the future of television for South Asia and
Africa Bangalore
• India ISP Conclave Pune
• India Telecom Exhibition Delhi
RATING IN MEMORANDUM OF UNDERSTANDING (MoU)
The Company's rating for the FY 2021-22 is "Fair" with a
composite score of 44.76. The Company has signed MoU with the Administrative Ministry for
sales turnover of Rs 2569 Crores (at Excellent Level) for the FY 2022-23. The MoU
Evaluation for the FY 2022-23 is yet to be finalized by DoT/DPE.
FUTURE OUTLOOK
The Company has undertaken many initiatives/ projects so as to boost
the turnover and implement the Revival plan.
I. 500 MWP Solar Panel manufacturing with Mono Crystalline Solar Cells
The Indian government's ambitious targets and support for the solar
sector have made indigenous PV manufacturing's prospects even more vibrant.
In 2020, India has adopted ‘National programme on high efficiency
solar PV modules' for achieving manufacturing capacity of Giga watt (GW) scale in high
efficiency solar PV modules. The aim of the mission is to promote manufacturing of high
efficiency solar PV modules in India and thus reduce import dependence in the area of
renewable energy.
Over the past five years, India has made substantial progress in solar
manufacturing. Solar module manufacturing capacity has trebled from 5.8GW in 2016 to about
39 GW in December 2022 and it is further expected to reach 110 GW by 2026.
Due to change in Solar Photovoltaic Technology and orientation of High
Efficiency Solar module, the demand of high efficiency Solar cell increasing rapidly to
meet the High power and High efficiency requirement to reduce the Levelized cost of Energy
(LCOE).
Due to advantage of High efficiency and less power degradation, the
Mono crystalline solar modules made with Mono PERC Solar Cell technology are being widely
used in Utility scale solar projects, Residential purposes, PERC solar panels can be used
as regular rooftop photo-voltaics, EV solar roof chargers, and solar sheds. Building
Integrated Photo-voltaics (BIPV), water surface power stations, and much more.
Hence, ITI is planning to implement 500 MW Solar Module in-house
manufacturing facility with High Efficiency Mono Crystalline Solar Cell with an investment
of Rs 110 Crore in year 2023-24.
II. Digital Mobile Radio - DMR
R&D has developed Digital Mobile Radio (DMR). DMR aims to provide
an affordable, low-complexity digital standard to replace analog radio. DMR based VHF/UHF
radios are used in many applications such as military communications, police, railways,
public safety, traffic control, disaster management, industrial security and
communications etc. The VHF/UHF radio can be used in direct-to-direct communication in
Tier I, Tier II or in multi-site environment in Tier II, Tier III modes.
The developed Radio has complete user interface and the mechanical
design to meet the needs of consumer applications.
R&D DMR System comprises DMR Smart Phone, DMR LCR (Low Cost Radio),
Repeater and Base Station. Prototype has been already developed and is under testing in
real environment at Indian Railway, Bangalore.
III. 4G RAN Manufacturing
As part of its focus on delivering turnkey projects to contribute in
the proliferation of indigenously manufactured 4G Mobile equipment through BSNL's 4G
Tender under Atma Nirbhar Bharat Mission. ITI has received Purchase Order from BSNL worth
Rs 2421.49 Crore for Planning, Engineering, Supply, Installation & Commissioning and
AMC of 4G Mobile Network for 23,633 Sites in West Zone of BSNL Network.
Also ITI has entered into Transfer of Technology with CDOT for
manufacturing of 4G LTE RAN to be deployed for BSNL network. The first proto types of
Radio Access Network (RAN) manufactured by ITI have already been installed at PoC at BSNL.
20 Sites for PoC have been allocated by BSNL for five different bands.
IV. Multi Service Platform (MSP)/ Security Operation Centre (SOC) :
ITI has entered into MOU with Tata Communications for setting up of
Multiservice Platform/Security Operation Centre (SOC) in ITI Data centre in Bangalore.
Various IT and security services like Identity Access Management, Email Security , Data
Loss Prevention, Distributed Denial of Service (DDOS) Mitigation, Network Access Control,
Endpoint Protection, Detection & Remediation, SIEM (Security Incident and Event
Management) and Threat Intelligence & Advisory would be provided to various clients to
fulfil their network security requirements. Implementation of Multiservice
Platform/Security Operation Centre (SOC) is completed and ready to provide services to
customers ITI has received letter of empanelment of National Level System Integrator as
SECaas Solution Provider on 11.01.2023 from BSNL.
V. Electronic Voting Machines (EVM)
ITI looks forward to manufacture complete of EVM system. The developed
EVM has complete user interface and the mechanical design as per the needs of State
Election Commission (SECs). EVM comprises of Ballot unit, Control unit & VVPAT (Voter
Verifiable Paper Audit Trail).
ITI R&D has finalized the Technical specifications of EVM matching
to SECs requirement of latest EVM and has manufactured the prototype. Demonstration of
prototype by standing committee of SEC is completed. Awaiting for Clearance from SEC.
VI. Smart Energy Meter
As part of diversification strategy, ITI has entered into Smart Energy
Meter manufacturing wherein the legacy energy meters are being replaced by smart energy
meters. These meters records energy consumption and has a facility to store the data and
reproduce whenever required. These meters enable a two-way communication between the meter
and the central system. ITI Ltd has supplied 91000 nos of Smart Energy Meters complying
with IS 16444 technical specifications to the DISCOMs in UP and Haryana against the order
from Energy Efficiency Services Limited (EESL) The Single Phase Smart Energy meters
received type approval and BIS certification complying with IS 16444 technical
specifications. ITI Palakkad plant is having the bulk manufacturing infrastructure and
facilities for the calibration and testing of smart energy meters. The calibration
laboratory of Smart Energy Meter has received the NABL accreditation as per ISO 17025:
2017 standards.
ITI is in the process of engaging in more technology partners for
addressing the huge market demand.
VII. OFC manufacturing line at Rae Bareli plant (Capacity of 30,000 per
annum)
There is a huge demand for OFC cable from Railways, BharatNet and
Defense project. Optical Fibre Cable (OFC) manufacturing lines are established with an
annual capacity of 30,000 KMs (24F Loose Tube Type OFC) and 10000 Km Ribbon Type OFC at
Raebareli plant.
ITI has manufactured 11000 Km of 24F NZDS OFC for ASCON Project, 8997
Km of 24F/48F ADSS,96F Ribbon OFC for TANFINET Project, 1800 KM 24F Armoured OFC for
Railways, 900 Km 24F/48F/96F OFC for MTNL, 200 Km 24F MF LT type OFC for Indian Air Force.
ITI has achieved Bulk supplier category for RDSO/Railway recently for
supply of 24F Armoured OFC. We have registered for supply of 48F Armoured OFC for
RDSO/Railways. ITI is expected to secure orders of 2000-5000Km for 24F/48F Armoured OFC
for RDSO/ Railways.
ITI has plans to enhance the 24 F normal Loose Tube Capacity from 3000
Km to 45000 Km and also create new infra for manufacturing Patch Cords, FTTH/ Drop cables.
CONTRIBUTION TO EXCHEQUER
During the year, your Company has contributed Rs 153.67 Crore to the
Exchequer towards duties and taxes.
PUBLIC DEPOSIT
The Company did not accept any deposits during the year 2022-23.
Deposits aggregating to Rs 0.23 crores had matured for payment, but were not claimed on
due dates.
CREDIT RATING
The Credit rating assigned by Rating Agencies for the various debt
instruments of the Company forms part of the Corporate Governance Report
JOINT VENTURES
INDIA SATCOM LIMITED (ISL)
ISL is a Joint Venture of Chris Tech Systems Pvt Ltd and ITI. Chris
Tech Systems Pvt Ltd has 51 % equity participation in ISL and balance equity is held by
ITI.
As part of revival, ISL executed a Joint Development Agreement to
develop its immovable property as a Software Technology Park. The Master plan of this
project called "Silicon Forest" is designed by Pei Cobb Freed & Partners, an
internationally renowned architects of USA and is designed with the required
specifications to get the rating of "IGBC Core and Shell Gold Certification", a
green building rating that brings together a host of sustainable practices and solutions
to reduce the environmental impacts. The Government of Karnataka, the Environment Impact
Assessment Authority, Pollution Control Board, Fire and Emergency Services Department,
Airports Authority of India, BESCOM, BWSSB, HAL and BSNL have accorded approval for the
project. This project will create employment opportunities for 1000 people and shall build
an IT infrastructure for 25,000 Software professionals.
Further, ISL is also set to embark upon commercialization of its
software namely "SatPAY', which will facilitate the online payments for large
enterprises. After obtaining the require license from the competent authorities, it will
be offered to various Government departments for integration of their online payment
process.
During the financial year 2022-23, ISL had achieved total income of Rs
3.21 crore and profit for the year is Rs 49.53 lakhs.
There was no Company which became or ceased to be subsidiary, joint
venture or associate of the Company during the year under review.
The salient features of the Financial Statement of Joint Venture
Company are furnished in form AOC-1 which is appended to this report as Annexure 1.
QUALITY
ITI Limited is always committed to Quality and we understand that
Quality encompasses all functions. Quality is a driver that produces higher profits
through lower costs and has the ability to command a premium price in the marketplace.
Quite conscious of the importance of the quality, since the very
beginning of its incorporation, the company has introduced many quality procedures and
practices and has established various Quality Management Systems and necessary
infrastructure over the years.
All the Manufacturing Units of the Company are certified for ISO based
Quality Management Systems i.e ISO 9001and ISO 14001 Environment Management System.
The Company has created the required Infrastructure by establishing
state- of-the-art test facilities like environment test chambers, high altitude test
facilities, bump & vibration test facilities, calibration facilities for electronic
test instruments, EMI / EMC test facilities, etc. Facilities for Highly Accelerated Life
Testing (HALT), Highly Accelerated Stress Screening (HASS) and combined environmental
testing have been established for enhancing product reliability. Around two Labs have been
accredited by NABL.
Requisite competency on various aspects of quality and reliability has
been built by imparting training to the employees every year for ISO under on-going
competency development programme.
Efforts are paying benefits to the Company in many ways like improving
our processes, reducing costs and improving profitability, enhancing customer satisfaction
and earning goodwill, trust and reputation. With all these infrastructure in place along
with necessary available competency and very high level of quality awareness within the
company we are poised to comfortably meet any forthcoming challenge on this front in
future. The Company is continuously following all the methods & procedures for
maintaining the Quality in all spheres.
Quality Management System QMS 9001-2015 surveillance audit was
conducted on 20th June 2023.
Renewal audit of Environment Management System (EMS 14001-2015) at
Palakkad Unit was conducted November 2022. Scope of Manufacture, Supply, Installation, and
servicing of Laptop and Micro PC are also added to the existing.
Renewal audit of NABL Accreditation standard IS:17025 for Smart Energy
Meter Calibration Laboratory conducted in February 2023.
Renewal audit of BIS IS 16444-2015 for Smart Energy Meter conducted
during November 2022.Renewal audit of BIS IS 16444-2015 for Smart Energy Meter conducted
during November 2022.
TSEC (Technical Specification Evaluation Certificate Issued by QA and
Inspection Circle of BSNL) for
• Radio Modem in ISM Band (Type A and Type B),
• Permanently Lubricated HDPE Telecom Ducts
• Executive Telephone System (ETS-04),
• Optical Fibre Cable ( various Types )
• Fiber Distribution Management System
BIS (Bureau of Indian Standards) Certification for
• Smart Energy Meter
• Crystalline Silicon Photovoltaic (PV) Modules
• Smaash PC
• Laptops
IEC (International Electro-Technical Commission) certificate for
"Solar PV Module"
TEC (Telecommunication Engineering Center) Type Approval certificate
for Permanently Lubricated HDPE Telecom Ducts
NPCI certification for RuPay Card Manufacturing and Personalisation
for Smart Card Manufacturing Infrastructure at Palakkad Plant.
NABL Certification
• EMI/EMC Lab at Bangalore Plant;
• Smart Energy Meter Calibration Laboratory at Palakkad Plant
Accreditation of VSSC (Vikram Sarabai Space Center, Trivandrum) for
Component Screening, Test & Evaluation, Assembly & Testing of flight Packages.
MANPOWER
The Company strives to build technological and managerial excellence in
the organization through best HR policies and practices in the industry. The HR policies
of the Company are in line with the Company's business plan. It emphasizes on upgrading
the skills and capabilities of its employees to improve their productivity. The Company is
conducting training and workshops in new and strategic areas, so that its employees are
ready to face challenges in the coming years. HR initiatives are focused on developing
team spirits, employee's empowerment and their involvement in various activities.
The HR vision of the Company is to make ITI a dynamic, highly
competitive and value based learning organization with skilled and motivated human
resources to face present and future challenges in the fast changing telecom scenario.
EMPLOYEES STRENGTH
The Employee strength at the end of the year 31st March 2023 was 2118
out which 374 are female employees.
As on 31st March 2023, there were 360 employees belonging to Scheduled
Castes, 57 belonging to Scheduled Tribes and 437 employees belonging to OBC category.
162 Officials are on Tenure/Contract basis, 6 Consultants were
recruited during the year 2022-23.
Employees belonging to Physically Challenged categories were 15 and
Ex-servicemen category numbering 19 were on the rolls of the company as at the end of the
financial year.
INDUSTRIAL RELATIONS
The Company has glorious tradition of building and maintaining healthy
employer-employee relations. The Industrial Relation scenario in the company was cordial
throughout the year. Employees Union and Officers Association extended their co-operation
and support in ensuring smooth work flow and helped to meet the Company's objectives.
PREVENTION OF SEXUAL HARASSMENT AT WORKPLACE
As per the provisions of the Sexual Harassment of Women at Workplace
(Prevention, Prohibition & Redressal) Act, 2013 (‘POSH Act') and Rules made there
under, Company has constituted Internal Complaints Committees (ICC) to redress complaints
received regarding Sexual Harassment at all Units. All employees (permanent, Contractual,
Temporary, trainees) are covered under this policy. Company has complied with the
provisions relating to the Constitution of ICC and during the year no cases/complaints
have been filed under the POSH Act. The details of composition of ICC is available on the
website of the Company at https://www.itiltd.in/hr
DEVELOPING EMPLOYEES CAPABILITIES & COMPETENCIES
ITI Limited weighs up that employee's development, enhancing their
skills and competencies for preparing them for future is the key step in taking up the
challenges effectively.
HUMAN RESOURCES EMPLOYEE DEVELOPMENT: i) Training & Development:
As technology is evolving rapidly in today's era of globalization, it
is crucial for the organization to acquire the necessary skills and knowledge. In order to
meet and overcome the obstacles faced, a lot of focus is being dedicated to creating new
talents, enhancing current ones, and raising capacity. The business's ability to succeed
rests on its trained workforce. Skill and knowledge are the main factors influencing the
Company's growth and sustainability.
The main difficulty for the organization right now is a shortage of
skilled people caused by the attrition of trained and experienced workers. The Human
Resource Employee Development (HRED) Department meticulously designs training and
development programmes, it is possible to improve/overcome the difficult circumstances and
the lack of the required set of skills. ITI Limited has implemented a strategy that
prioritizes staff training, development, and capacity building through a methodical and
need based planning approach that includes identifying training needs, creating and
customizing training courses etc.
Learning is a fundamental value of ITI Limited. Recognizing the need
for capability building for current and future roles, ITI Limited has set up a
comprehensive training facilities comprising Employee Development Centers (EDCs) at all
plants (i.e., Bangalore, Palakkad, Mankapur, Rae Bareli and Naini). Learning and
Development is actively engaged in preparing our employees for the future when it comes to
technology, business acumen and leadership. So learning is a core value. Training Delivery
modes includes classroom, online (web based and Video-Conferencing), Virtual Reality and
e-Learning with increasing emphasis on technology driven platforms.
With a major focus on the Company's business objectives,
employee-centered technological and managerial Skill Development, customer relations and
quality. The Company has made a commitment to adopt the way to enhance the skills in
emerging trends in telecom technologies like Department of Public Enterprises (DPE),
Centre for Development of Advanced Computing (C-DAC), National Telecommunications
Institute for Policy Research, Innovation & Training (NTIPRIT), the Department of
Telecommunications (DoT), National Academy of Human Resource Development (NAHRD),
Government e- Marketplace (GeM) etc. And also accelerated HR learning interventions and
employee development activities.
Employees get regular access to enhance the skills/knowledge on areas
like new technology/general training courses such advanced courses on 4G/5G, IoT,
Enterprise Risk Management (ERM), advanced courses on PCMM Level 3, Reservation Rules and
Recruitment Policy, Employee Wellness/Awareness programmes, GeM Procurement, Right to
Information Act 2005 etc.
In order to develop and improve their abilities, knowledge, attitudes,
and exposure to new technology, 728 ITI Officials have been nominated for external
training programmes and workshops organized by various governmental organizations and
private institutions in the most important fields. These coaching programmes help people
cultivate their capacity for managing change, their innovative and methods, their ability
to think critically, and their positive outlook on creating a high-performance workplace
culture.
The details of number of training programmes organized; No. of people
trained; Training man-days achieved during the FY 2022-23 is as follows:
|
Training |
|
| Details |
In-house (IH) |
External (EN) |
Total |
| No. of programmes |
70 |
79 |
149 |
| No. of people trained |
1523 |
728 |
2251 |
| Training Man-days achieved |
2201 |
940 |
3141 |
| Male employees trained |
1140 |
527 |
1667 |
| Female employees trained |
383 |
201 |
584 |
| SC/ST employees trained |
256 |
171 |
427 |
Note: IH-In House, EN: External Nomination
In addition to the above, the Ministry of Communications developed an
online learning platform to guide individual officials in their capacity-building journey.
It combines five functional hubs for Online Learning, Competency Management, Career
Management, Discussions, and Networking.
ITI employees have taken online trainings to improve their knowledge
and skills on various topics under iGoT Portal (Karmayogi Bharat) by DoPI As of 79
employees have completed two or more online trainings at the iGoT portal.
Talent Development:
In order to give our talent and staff members an advantage in their
personal and professional development, we at ITI Limited believe in the holistic
development of not just our product but also of these individuals. We have always believed
that it is crucial to support our staff through extensive training and development
programmes given the trend towards more technology and innovation on a global scale.
An individual can become an authority in a particular profession by
having well-honed skills and knowledge. A skill is the capacity to perform an activity
satisfactorily on the job. When employees possess the necessary skills to accomplish their
tasks, their performance goes up. A training programme can help employees enhance their
development of these skills. Trainings are used to re-educate and re-train staff workers
when new technology, methods or systems are introduced in order to make sure they are
meeting the unique requirements of their particular employment. Additionally, staff
development initiatives can assist employees to develop in their profession.
ii) Skill Development and Capacity Building:
Skill Development training is an initiative taken by Central Government
to enhance the employability of unemployed people or school drop outs by giving training
in the emerging or the prospective areas of employment. Skill Development is significant
in the overall development of a student/candidate. Personal development & learning
skills will not only increase the opportunities but will also empower an individual.
Skills like communication go a long way in aiding the overall development of
students/trainees. Skill Development trainings provide significant benefits like; increase
in employment opportunities, increased career development opportunities, personal growth,
increases knowledge and understanding of local industry.
Six Training Centers (TCs) have been created at ITI plants and
registered on smart.nsdcindia.org portal - NSDC viz. Bangalore, Palakkad, Rae Bareli,
Naini and Mankapur and a Smart Skill Development Centre has been established at ITI
Srinagar Plant. The Company not only develops the skill sets of its own employees by
imparting training through its HR-Employee Development Centers located at units but also
train and educate the young minds in vocational trades through summer training/internship
projects etc.
The Company is actively involved in imparting the Skill Development
training in various modules of Telecom Skill Sector Council (TSSC)/ Electronics Sector
Skill Council of India (ESSCI) and National Institute of Electronics & Information
Technology (NIELIT) job roles and ITI Modules for various categories of
students.
As part of ‘Skill India' Flagship programme, ITI started imparting
Skill Development and Capacity Building training at various plants of ITI to youths/
trainees/students thereby enhancing their employability and increasing their employment
opportunities and entrepreneurship.
Company has also ventured to provide theoretical and practical training
to engineering, management students as an endeavor to bridge the institution- industry
skill gaps. The Finishing School trainings at Company's plants are doing yeoman services
to the students' community in the Country.
All the plants have re-registered / migrated their TCs on
skillindia.nsdcindia.org NSDC. 310 students have completed Skill Development training on
different modules under Employment through Skill Training & Placement (EST&P)
under Deendayal Antyodaya Yojana-National Urban Livelihoods Mission (DAY-NULM) in the FY
2022-23.
In addition to the above, ITI is also engaging and imparting training
to Graduate Engineers, Diploma (Technicians) and Trade Apprentices in various trades under
the Apprentices' Act / National Apprentices Promotion Scheme (NAPS). Also, as a part of
capacity building, the Company is imparting training to the students of Engineering /
Management to carry out their Internship, Project and Adoption of ITI /Industrial
Trainings.
Course-wise number of participants imparted Skill Development training
during the FY 2022-23:
| Sl.No. Name of Skill Development Scheme |
No. of Participants |
| 1 Computer/Networking based training (VHSE) |
90 |
| 2 Field Technician Computing & Peripherals -
EST&P-DAY NULM |
120 |
| 3 Fire Fighter - EST&P-DAY NULM |
112 |
| 4 Broadband Technician - EST&P-DAY NULM |
78 |
| 5 ITI Trade Apprentices (NAC) |
82 |
| 6 Diploma/Technician Apprentices |
7 |
| 7 Graduate Engineer Apprentices |
9 |
| 8 In-Plant/Internship Training (ITIL module) |
547 |
| 9 Project Training (ITIL module) |
88 |
| 10 Industrial visit |
1730 |
| 11 Special Industrial Training (Adopted ITIs students) |
81 |
| TOTAL |
2944 |
IMPLEMENTATION OF OFFICIAL LANGUAGE ACT, 1963
All Units/Marketing services and Projects ("MSP") have
established "Check- Points" in their departments to make effective
implementation of the Official Language Policy. Monitoring is being done by the respective
Official Language Implementation Committee constituted in every Unit/MSP.
The Progress of Implementation of Official Language in Corporate Office
as well as in all other Units/MSP is being periodically reviewed by the Official Language
Implementation Committee (OLIC) of Corporate Office.
Units/MSP at Naini, Rae Bareli, Mankapur, New Delhi, Mumbai, Lucknow,
Hyderabad & Corporate Office have been notified in the Gazette of Government of India
under the Official Langauage Rules 10(2) & (4), 1976 after more than eighty percent
(80%) of the staff had working knowledge of Hindi in these Units/MSP.
The Corporate Office of the Company regularly sends the Quarterly
Progressive Report to the Ministry of Communication, Department of Telecommunication, New
Delhi as well as Dy. Director (Implementation), Regional Implementation Office, Bengaluru.
The Company had also sent Half Yearly Hindi Progress report to Secretary, Town Official
Language Implementation Committee (Undertaking) (TOLIC), Bangalore and Annual Assessment
Report to Ministry of Communication, Department of Telecommunication, New Delhi. After
reviewing our quarterly report & Annual report Corporate Office has been receiving
appreciation letter for the last one year from Deputy Director (Implementation), Regional
Implementation Office, Bangalore.
As per Ministry Guidelines, Corporate Office OL department has done 25%
inspection in the northern Units/MSP Offices such as Naini, Raebereli, Mankapur and
Lucknow during 16th - 21st May 2022.
ITI Limited, Corporate Office had received first prize for
"Official Language Performance Excellence Award" on 25th July 2022 for the year
2021-22 by TOLIC, Bangalore for progressive use of Hindi and implementation of Official
Language Policy in Corporate Office.
On 25thAugust 2022, the second sub-committee of Parliamentary Committee
on Official Language, New Delhi, Dr. Rita Bahuguna Joshi and all the Committee members had
inspected ITI limited, MSP Office, Hyderabad Official Language department, in connection
with Official Language Policy Implementation.
In order to enhance working knowledge of Official Language of
employees, internal training programs are conducted with support of internal/external
faculties. Besides, employees are also encouraged to take part in Hindi Prabodh, Praveen,
Pragya & Parangat examinations for which financial incentives are given to qualified
employees.
"Hindi Fortnight" was organized in the year 2022-23 in all
the Units and MSP offices and various events were organized for employees during this
fortnight. Employees of Units/MSP also participated in the "Joint Hindi Month"
competitions organized by Town Official Language Implementation Committee (Undertaking),
Bangalore and won approx. 03 awards. Bilingual (i.e., English and Hindi) website of the
company is being maintained and regularly updated.
VIGILANCE
The vigilance department of the Company focus on preventive vigilance
to identify deficiencies in the system if any and advise the management on streamlining
the systems to prevent recurrence. The complaints received also are being investigated and
brought to a logical conclusion. The Management Audit of Vigilance Unit was done by CVC
officials on 14thand 15th September 2022. The vigilance awareness week- 2022 was observed
by vigilance department in ITI from 31st October to 6th November 2022.
1 System Improvements
The details of system improvements effected based on preventive
vigilance and investigations of complaints are as below:
a) Land records
Digitizing of Land records of all land owned by ITI was perused by
vigilance and facilitated completion of the land record as well as utilization status of
the same. Created awareness on increasing the revenue through leasing and clearing
encroachments in various plants.
b) Cost saving measures
i. OFC - Based on vigilance initiative, cost of raw materials for OFC
manufacturing has been reduced by 17%.
ii. Electricity conservation - Awareness on electricity consumption and
measure to reduce the same was highlighted by vigilance and is being implemented.
iii. Summary of all labour contracts were compiled and highlighted to
the Management for reducing and optimizing the cost of outsourcing.
c) Recruitment & Promotion
The deficiencies w.r.t notification and the selection process were
identified and advisories on the same to prevent recurrence of deficiencies in the
sensitive recruitments were issued.
The promotion process followed in 2021 & 2022 was reviewed and
requisite inputs to make it more objective & transparent was highlighted. Most of them
were accepted.
d) Security of factories
To strengthen security system in the factories of the Company at
various places, a detailed review was done and details of deficiencies and guidelines for
rectifying the same were issued to management.
e) Procurement of goods and services
The Materials Management Manual which was revised in 2016 was reviewed
and the revised manual with latest guidelines and policy of the Company was completed and
the draft is in the advance stage of acceptance by the management for compliance along
with relevant DOP.
f) Works contracts for execution of projects
To overcome the deficiencies/discrepancies observed in the contracts
being entered into and executed on various projects, a detailed advisory covering Pre
tender, Tender stage, tender evaluation and Post tender execution was issued.
g) Leveraging of technology
The implementation of E-Payment, E-tender, Procurement through GEM and
implementation of ERP was taken up as a regular review items in vigilance review with the
management and quantum improvements was achieved on the same.
h) Disposal of averaged materials and Plant & Machineries
Detailed review of the huge accumulation of obsolete/ unserviceable
materials and Plant & Machineries which were accumulated over the past two decades was
taken up and disposal of the same is under process. This not only generate revenue on
disposal but also reduces the expenses on maintaining the inventory and releases the space
for alternate use in the unit. Scrap disposal process was reviewed and deficiencies
observed were highlighted for compliance.
2. Details of vigilance Complaints monitoring
The complaints received are being reviewed by vigilance organisation
and whichever complaint requires investigation, the same are taken up duly following CVC
guidelines. The details of vigilance complaints received and processed at the Company
during the year is as below,
Status of Vigilance Complaints - 2022-23
| Opening Balance |
Received during 2022-23 |
Total |
Disposed |
Pending cases with nature of complaints |
| 8 |
17 |
25 |
21 |
4 (Contract - 2) (HR-2) |
IMPLEMENTION OF RIGHT TO INFORMATION ACT, 2005 (RTI)
During the FY 2022-23, 451 applications under RTI have been received
including 48 RTI applications carried forward from previous years Information was provided
for 460 RTI applications. The Central Information Commission ("CIC") has online
RTI portal for filing online RTI requests for seeking information for convenience of the
applicants. Out of the 460 replies, information was provided online for 210 cases. All
cases referred to CIC by the applicants as Second Appeals have been successfully addressed
and complied. Quarterly online RTI returns were uploaded on the CIC portal and also same
information were published on the Company website.
AUDIT
- STATUTORY AUDIT
Statutory Audit
M/s GRSM & Associates, Chartered Accountants, Bengaluru were
appointed as Statutory Auditors for FY 2022-23 by Comptroller & Auditor General of
India (C&AG) for Bangalore Unit, NS Unit, Corporate Office, 8 Regional Offices and for
Consolidation of accounts. They will hold office till conclusion of the ensuing Annual
General Meeting. C&AG is in the process of appointment of Statutory Auditors for the
year 2023-24.
The Statutory Auditors have been paid a total remuneration of Rs 12.85
lakhs towards audit fees, certification and other services. The above fees are excluding
of taxes, re-imbursement of travelling and out of pocket expenses.
- AUDITORS' REPORT
Auditors' Report on the Annual Accounts for the financial year 2022-23
and the comments of the C&AG under Sec 143(6)(b) of the Companies Act, 2013 on the
Annual accounts are appended to this report. Reply to observations of Statutory Auditors
and C&AG are attached as addendum to this report.
During the year 2022-23, no fraud had been reported by the Statutory
Auditors of the Company.
- BRANCH AUDITORS
The following firms of Chartered Accountants were appointed by
Comptroller and Auditor General of India as Branch Auditors for different plants of the
Company for the year 2022-23.
| Sl.No. Unit |
Name of the Firm |
| 1. Rae Bareli |
M/s. Mehrotra Kapoor & Tandon, Rae
Bareli |
| 2. Naini |
M/s. G K Arora & Associates, Allahabad |
| 3 Mankapur |
M/s. S K Associates , Faizabad |
| 4. Palakkad |
M/s. Argee & Co, Palakkad |
| 5. Srinagar |
M/s. Mir & Co., Pulwama, Srinagar |
The fees paid to Branch Auditor for Rae Bareli is Rs 1.63 Lakhs, Naini
Rs 1.16 lakhs, Palakkad Rs 1.34 lakhs, Mankapur Rs 1.18 lakhs and Srinagar Rs 0.20 lakhs
towards audit fees, certification and other services. The above fees are excluding
applicable taxes, re-imbursement of travelling and out of pocket expenses.
COST AUDITORS
The Company maintains cost records as required under the provisions of
the Companies Act. The Company had appointed M/s. GNV & Associates, Bengaluru as lead
Cost Auditors for the year 2022-23 for the cost audit of units located at Bengaluru and
Palakkad and also for consolidation of Cost Audit Reports of the Company as a whole.
M/s. Aman Malviya & Associates, Lucknow were appointed as Branch
Auditors for cost audit of units located at Naini, Rae Bareli, Mankapur and Srinagar.
A remuneration of Rs 3,16,000 inclusive of GST as applicable was fixed
by the Board for payment to the Cost Auditors for 2022-23, which was ratified by the
shareholders in the last Annual General Meeting held on 28.09.2022. The cost audit report
for the year 2021-22 was filed with Ministry of Corporate Affairs.
- SECRETARIAL AUDITOR
The Board had appointed Shri K N Nagesha Rao, Company Secretary in
Practice, to conduct the Secretarial Audit of the Company for the year 2022-23. The
Secretarial Auditor in his report have stated that during the period under review the
Company has complied with the provisions of the Acts, Rules, Regulations, guidelines,
standards except for the observation mentioned in Secretarial Audit Report, which is
appended as Annexure-2. The reply of management to the observations of Secretarial
Auditor is attached as addendum to Directors' Report.
INTERNAL FINANCIAL CONTROL
ITI has an adequate system of Internal Controls in place commensurate
with its size and nature of business. It has well established and documented policies and
procedures for safeguarding its assets viz. Materials Management Manual, HR Policies and
Procedures, Accounting policies, Sub-Delegation of Powers for financial and operational
functions. The Internal Audit is conducted by Company's Internal Audit team headed by
Chief Internal Auditor at Corporate Office and at Units. The reports of Internal Audit
department indicating the status of compliance with internal control system of the
company, is periodically reviewed by Audit Committee. The Audit Committee also
periodically interacts with the internal and statutory auditors including Branch auditors
to assess the adequacy of internal control systems.
The Internal Financial Control of the Company is analysed and audited
for compliance. The report on the Internal Financial Controls under Section 143 of the
Companies Act, 2013 is prepared and annexed to the Independent Auditor's Report. As per
the report, the Company has, in all material respects, adequate internal financial
controls with reference to the financial statements and such internal financial control
were operating effectively as on 31st March 2023, except of the observations referred in Annexure-B,
based on the internal control with reference to the Financial Statements criteria
established by the Company considering the essential components of internal control stated
in the Guidance Note of Audit of Internal Financial Controls over Financial Reporting
issued by the Institute of Chartered Accountants of India.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
ITI is committed to the Communities around its business and far beyond
through its CSR initiatives. During the financial year 2022-23, the Company was not
required to spend any amount towards CSR activities, as the average net profits of the
Company for the preceding three financial years was negative. However, the Company had
spent Rs 6.13 lakhs towards CSR activities. Further, the CSR unspent amount for FY 21-22
of Rs 11.46 lakhs was transferred to PM Cares Fund on 29th September 2022.
Annual Report on CSR activities including the composition of CSR
Committee is enclosed as Annexure-3 to the report.
The details of the CSR policy, projects and programmes are available on
the website of the Company on at https://www.itiltd.in/csr
BOARD OF DIRECTORS AND KEY MANAGERIAL PERSONNEL
ITI Limited being a Government Company, the policy on directors'
appointment and remuneration is not applicable and also evaluation of their performance is
exempted vide notification dated 05.06.2015 issued by the Ministry of Corporate Affairs.
As on 11lhAugust 2023, there are Nine Directors on the Board of the
Company, of which four are Whole Time Directors (including Chairman and Managing
Director), Two are Government Director and Three Non-Official Part Time Directors
(Independent Directors).
INDEPENDENT DIRECTORS
During FY 2022-23, there were no appointment and cessation of
Independent Directors.
The Company has received the Certificate of Independence from the
Independent Directors confirming that they meet the criteria prescribed for Independent
Directors under the provisions of the Companies Act, 2013, and SEBI (LODR). The
Independent Directors have confirmed that they are registered with the Database maintained
by the Indian Institute of Corporate Affairs (IICA) under the Ministry of Corporate
Affairs
In terms of the provisions of Schedule IV of the Companies Act, 2013,
the terms and conditions of appointment of Independent Directors are posted on the website
of the Company. Further, the Independent Directors are not liable to retire by rotation
under the provisions of Section 152 of the Companies Act, 2013.
During the year under review, a separate meeting of Independent
Directors was held on 11th November 2022 in which all the Independent Directors were
present.
GOVERNMENT DIRECTOR
The following are changes in Government Directors:
1. Lt Gen Milind N Bhurke, PVSM, VSM, Signal Officer - in Chief ceased
to be Government Director of the Company w.e.f. 30th June 2022 upon attaining the age of
superannuation.
2. Dr Rajesh Sharma ceased to be Government Director w.e.f. 17th
November 2022 as he has taken up new assignments.
3. Shri R Shakya was appointed as Government Director of the Company
w.e.f. 23rd November 2022 in place of Dr. Rajesh Sharma.
4. Lt Gen M Unnikrishnan Nair, AVSM, SM, Signal Officer- in Chief was
appointed as Government Director of the Company w.e.f. 16th December 2022, Vice Lt Gen
Milind N Bhurke.
FUNCTIONAL DIRECTORS
The following are the changes in Functional Directors :
1. Shri Rakesh Mohan Agarwal ceased to be the Chairman and Managing
Director upon attaining the age of superannuation w.e.f. 30thJune 2022.
2. Shri D Venkateswarlu, Director Production / (addl charge) Director
HR was entrusted with additional charge of Chairman and Managing Director w.e.f. 07th July
2022 till 31st August 2022.
3. Shri D Venkateswarlu ceased to be Director Production/ (addl charge)
Chairman and Managing Director & Director HR w.e.f. 31st August 2022 upon attaining
the age of superannuation.
4. Shri Anand Singh, Joint Secretary (Telecom) was entrusted with
additional charge of Chairman and Managing Director from 01st September 2022 till 30th
September 2022.
5. Shri Rakesh Chandra Tiwari, Director Marketing was entrusted with
additional charge of Chairman and Managing Director w.e.f. 01st October 2022 till 21st
February 2023 (F/N).
6. Shri Rajesh Rai was appointed as Chairman and Managing Director
w.e.f. 21st February 2023.
7. Smt R Vasanthi, General Manager (Operations) was entrusted with
additional charge of Director Production w.e.f. 28th February 2023 till regularly selected
candidate's appointment.
8. Smt S Jeyanthi, General Manager (Projects & Planning) was
entrusted with additional charge of Director HR w.e.f. 28th February 2023 till regularly
selected candidate's appointment.
9. Shri S Jeyanthi was appointed as Director Production w.e.f. 19th May
2023. Consequent to that Smt R Vasanthi ceased to be Director of the Company w.e.f.
19thMay 2023.
The Board wish to place on record its whole hearted appreciation for
commendable contribution and guidance rendered by the Directors whose term of office ended
during the year.
Shri Rakesh Chandra Tiwari, Director Marketing retires by rotation at
the forthcoming Annual General Meeting and being eligible offers himself for
re-appointment.
KEY MANAGERIAL PERSONNEL
During the financial year 2022-23, apart from functional directors,
Chief Financial Officer and Company Secretary continues to hold the post of Key Managerial
Personnel of the Company.
Smt S Shanmuga Priya, Company Secretary and Key Managerial Personnel of
the Company resigned from the services of the Company w.e.f. 09th March 2023.
The Board of Directors appointed Smt Shalini Ghatak as the Company
Secretary and Key Managerial Personnel of the Company w.e.f. 06th July 2023.
DETAILS OF BOARD MEETINGS
During the year under review, eight Meetings of the Board of Directors
were held. The details of meetings attended by each director are provided in the Corporate
Governance Report.
COMPOSITION OF AUDIT COMMITTEE
As on 31st March 2023, the Audit Committee comprised of 04 Members out
of which 03 were Independent Directors and 01 was a Functional Director. During the year,
05 Audit Committee Meetings were held, details of which are provided in the Corporate
Governance Report.
There have been no instances during the year when recommendations of
the Audit Committee were not accepted by the Board.
PERFORMANCE EVALUATION OF BOARD, ITS COMMITTEES AND INDIVIDUAL
DIRECTORS AND POLICY FOR SELECTION AND APPOINTMENT OF DIRECTORS AND THEIR REMUNERATION
ITI Limited being Government Company is exempted from the provisions of
evaluation of performance of independent Directors. Further, the Govt. of India, the
appointing authority has its own set of processes in determining the criteria and also for
evaluation of the performance of Independent Directors at the time of appointment /
re-appointment.
With regard to formulation of criteria for appointment of Directors on
the Board by the Nomination and Remuneration Committee, being a Government Company, the
criteria for appointment of Directors on the Board is done by Government of India.
RISK MANAGEMENT
The Company has a Risk Management Committee (‘RMC') to frame,
implement and monitor the risk management plan for the Company. The Committee had revamped
its Enterprise Risk Management Manual - Policy & Framework with an objective to ensure
that the Company has proper and continuous risk identification and management process.
Risk Management is being practiced by the Company in all units and the possible risks
associated with the business are identified and mitigation plans are evolved. Besides Risk
Prioritization, the Roles and responsibilities of all the sub committees (below board
level) have been clearly defined.
The details of Committee and other details are set out in the Corporate
Governance Report and a detailed note on Risk Management is provided in the Management
Discussion and Analysis Report.
WHISTLE BLOWER POLICY/ VIGIL MECHANISM
Details regarding Vigil Mechanism is provided under Corporate
Governance report which forms part of this Annual Report.
PARTICULARS OF EMPLOYEES
Government Companies are exempted from complying with provisions of
Section 197 of the Companies Act, 2013. Therefore, such particulars have not been included
as part of Directors' Report.
BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT
A separate section on Business Responsibility and Sustainability Report
as required under Listing Regulations, has been included in the Annual Report as Annexure
- 4 and the same forms part of the Directors' Report.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
The Management Discussion and Analysis Report prepared as per Listing
Regulations and DPE Guidelines on Corporate Governance is enclosed as Annexure - 5 of
this report.
CORPORATE GOVERNANCE REPORT
The report on Corporate Governance on the compliance of Corporate
Governance conditions stipulated in Listing Regulations and the DPE guidelines forms part
of Directors report. The Certificate on the Compliance of above Corporate Governance
Conditions from Practicing Company Secretary also forms part of Directors' report.
EXTRACT OF ANNUAL RETURN
In accordance with the Companies Act, 2013, the annual return is
available on the Company's website at https://www.itiltd.in/annual_general_meeting
RELATED PARTY TRANSACTIONS
All related party transactions entered during the year 2022-23 were in
ordinary course of the business and are on an arm's length basis.
The Company has formulated a Policy on Related Party Transactions which
is available on the Company's website at https://www.itiltd.in/codes and policies.
The disclosure of related party transactions as required under Section
134(3)(h) of the Companies Act, 2013 in Form AOC2 is not applicable to the Company.
Members may refer to Note No. 32 to the financial statement which sets out related party
disclosures pursuant to IndAS24.
MATERIAL CHANGES AFFECTING FINANCIAL POSITION OCCURING BETWEEN THE END
DATE OF FINANCIAL YEAR AND DATE OF THE REPORT
There have been no material changes and commitments affecting the
financial position of the Company between the end of the financial year and the date of
this report. There has been no change in the nature of the business of the Company.
REGULATORY OR COURTS ORDER:
During FY 2022-23, there was no order or direction of any court or
tribunal or regulatory authority which either affecting Company's status as a going
concern or which significantly affecting Company's business operations.
DIRECTORS' RESPONSIBILITY STATEMENT
The Board of Directors confirm that
(a) In the preparation of the annual accounts for the financial year
ended 31st March 2023, the applicable accounting standards had been followed along with
proper explanation relating to material departures;
(b) Such accounting policies have been selected and applied
consistently and judgments and estimates have been made that are reasonable and prudent so
as to give a true and fair view of the state of affairs of the company at 31st March 2023
and of the profit of the company at that date;
(c) Proper and sufficient care for the maintenance of adequate
accounting records in accordance with the provisions of Companies Act, 2013 for
safeguarding the assets of the company and for preventing and detecting fraud and other
irregularities;
(d) The annual financial statements have been prepared on a going
concern basis;
(e) Proper internal financial controls were in place and that the
financial controls were adequate and were operating effectively; and
(f) That systems to ensure compliance with the provisions of all
applicable laws were in place and that such systems were adequate and operating
effectively.
PARTICULARS OF LOAN, GUARANTEES OR INVESTMENTS
There are no transactions of Loans, Guarantees and Investments covered
under the provisions of Section 186 of the Companies Act, 2013.
STATUS ON COMPLIANCE WITH THE INSOLVENCY AND BANKRUPTCY CODE, 2016
(IBC)
M/s Eagle Software India Pvt. Ltd. has filed an application U/Sec 9 of
IBC in NCLT, Bangalore to initiate Corporate Insolvency Resolution Process against ITI
Ltd. This case came up for hearing on 07.06.2023 and is reserved for orders. The Company
had also received an email dated 21st April 2022 from NCLT Bengaluru regarding an
application filed by M/s Fujiyama.
As reported in Annual Report 2021-22 regarding filing of case by M/s
Emdee Digitronics Private Limited for Corporate Insolvency Resolution process, the case
was dismissed as withdrawn on 20th September 2022.
Apart from the cases mentioned above, there were no other applications
made or any proceeding pending against the Company under Insolvency and Bankruptcy Code,
2016 (31 of 2016) during the financial year.
DETAILS OF DIFFERENCE BETWEEN AMOUNT OF THE VALUATION DONE AT THE TIME
OF ONE TIME SETTLEMENT AND THE VALUATION DONE WHILE TAKING LOAN FROM THE BANKS OR
FINANCIAL INSTITUTIONS ALONG WITH THE REASONS THEREOF
There are no instances of one-time settlement during the financial year
2022-23.
ENTERTAINMENT EXPENDITURE AND FOREIGN TRAVEL
The expenditure on entertainment was Rs 1.56 lakhs (Previous Year Rs
2.58 lakhs). Expenditure on official travel abroad by the officials of the Company was NIL
during the year.
CITIZEN'S CHARTER
Citizens are implied as any stakeholder of the ITI Limited (ITI)
extending from Employees, Customers, Vendors, Investors, Collaborators/JV Partners,
Competitors, Media, and Government to Society/community at large. The Citizen's Charter
does not by itself create new legal rights, but makes the citizens aware of their existing
rights.
ITI Citizen's Charter outlines its scope and contains general
information about the Company, Citizens' obligations towards the company and the
management's commitment towards the citizens. It also contains Grievance Redressal
Mechanism and Citizens' Service Delivery.
The Charter exhibits the organization's ability to provide quality
products and efficient services to the citizens while meeting the legal and regulatory
requirements. Continuous improvement of products and services is its aim for the
satisfaction of the stakeholder The Citizen Charter of the Company is available on the
website at https://itiltd.in/doc/2022/Citizen Charter ITI.pdf
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
EARNINGS AND OUTGO
Particulars with respect to Conservation of Energy, Technology
Absorption and Foreign Exchange Earnings and Outgo, required to be disclosed under the
Section 134 of the Companies Act, 2013 read with Rule 8 of Companies (Accounts) Rules,
2014 is appended as Annexure 6.
PROCUREMENT POLICY FOR MICRO AND SMALL ENTERPRISES ORDER 2012
The Procurement Policy for Micro and Small Enterprises Order 2012 read
with amendments made thereunder is being followed across all the Units of the Company. The
annual target set for MSME procurement was 25% for FY 2022-23. The Company has achieved a
decent target of 26.30% of total annual procurement through our MSME vendor during
2022-23. Total procurement value through MSME vendors was Rs 69.59 Crore.
ACKNOWLEDGEMENT
The Board of Directors would like to thank its clients, vendors,
investors, bankers for their continued support during the year. The Board would also like
to thank the Government of India, particularly the Ministry of Communications and Ministry
of Defence as well as the various State Governments, regulatory and statutory authorities
for their support and look forward to their continued support in future. The Board is also
thankful to all its stakeholders, including the Comptroller & Auditor General of
India, Statutory Auditors, Secretarial Auditor, Cost Auditor, Internal Auditors, etc for
their continued co-operation. The Board appreciate and value the contribution made by
every employee.
|
For and on behalf of Board |
|
Rajesh Rai |
| Place: Bengaluru |
Chairman and Managing Director |
| Date : 11th August 2023 |
DIN:10052045 |
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