Dear Shareholders, I heartily welcome you all on behalf of my self and my colleagues on the Board to the 33rd Annual General Meeting of your Company. The Audited Annual Accounts, Directors' Report, Statutory Auditors' Report and NIL comments of C & AG thereon are placed before you and with your permission, I take them as read. THE ECONOMY The recent volatile global economic and business environment has shaken business confidence of the industry and the pace at which the economy recovers will be significant for the global prospects for the coming years. Despite the global slow down, the Indian economy has shown resilience and has emerged as one of the fastest growing economies of the world. India's GDP is expected to grow at a steady rate of 8-9%. INDUSTRY While India is widely acknowledged as the world's fastest growing telecom market, it has reached around 71% tele-density as on 31.03.2011. The number of Telephone subscribers has also increased to 846 million as on 31st March, 2011. The Indian Telecom Industry has been growing at a very fast pace along with the rapid change in the technologies. Telecom Industry has now become the key to economic progress and prosperity in the country. The company is well equipped to keep pace with the competition in the growing economy of the country. MOU RATING A notable achievement of your Company is that the performance of the company in terms of MOU is likely to be adjudged 'Excellent' for this year also. DIVIDEND Your Company, keeping with its past Dividend trend, has proposed to pay a Dividend @ 10% on the paid up capital amounting to Rs. 43.2 Mn. PERFORMANCE (i) FINANCIAL It is a matter of great satisfaction that the year 2010-11 has been eventful in performance and your company continued to register significant growth. During the year under reference, TCIL has been able to register Consolidated Turnover of Rs. 18330 Million and the Consolidated Profit after Tax of Rs. 1635 Million. During the year under review your Company has achieved all time high Standalone Turnover of Rs. 8509 Million compared to previous year Turnover of Rs. 7328 Mn. The Standalone profit (PAT) of the company has also increased to Rs. 136 Million as against Rs. 113 Million of last year. Profit after tax as such increased by 20.35 %. TCIL earned Foreign Exchange of Rs. 2181 Million and the Foreign Exchange repatriation to India amounted to Rs. 110 Million during the year. Your company succeeded in achieving the record order booking of Rs. 11466 Million as compared to Rs. 8020 Million of last year. (ii) PROJECTS I am highlighting some of the major projects of your Company: It is a matter of pride that the second phase of the Pan-African e-Network Project was inaugurated by Hon'ble Shri S.M. Krishna, External Affairs Minister, in respect of twelve countries at TCIL Bhawan on 16th August 2010, amidst the presence of High Commissioners and Ambassadors of African countries and senior officers of the Ministry of External Affairs. The project has generated a lot of interest in African countries and these Countries are envisaging to add more learning centres at their own cost and are requesting proposals in this regard. Virtual University infrastructure for University of Madras for Distance Education Programme has been successfully commissioned by your company and was inaugurated on 09.02.2011. Education programs are being delivered daily on the network. TCIL has been awarded an Asian Development Bank (ADB) funded International Consultancy Project for providing consultancy services for developing and deploying the SASEC regional network and village network in Bhutan and in Nepal. TCIL is also continuing to execute Tele-Medicine Project for SAARC Countries. Bharat Sanchar Nigam Ltd. (BSNL) has awarded yet another capacity expansion from 5 million to 10 million customers of National Internet Backbone Project. On successful completion of Lawful Interception and Monitoring (LIM) system for BSNL, Delhi Police and Haryana Police, Delhi Police and BSNL awarded add-on orders for expansion and up-gradation of existing LIM System and these have been implemented successfully. Your Company has been retained as Implementing Agency by SMT Engineering Co., Republic of Sudan, for setting up of an ICT Department for its Group Companies. The project is being executed in three phases. 1st phase has been successfully implemented. Two Consultancy Projects for preparation of Feasibility Report, Information Memorandum and detailed Project Report for RAILTEL Corporation of India Ltd. for Broadband and OFC Network have been bagged by your company. Your Company has been awarded financial and technical consultancy for District-wise OFC Network Augmentation in North East, West Bengal, Sikkim and A&N Islands by Universal Services Obligation Fund (USOF), Department of Telecom. Your Company has been also awarded the technical consultancy project for setting up of tele-conferencing facility for G20 Secretariat. Having empanelled with Power Finance Corporation (PFC) for consultancy works under Restructured Accelerated Power Development and Reforms Programme (R-APDRP) project, TCIL has bagged the consultancy works for 7 utilities across India. The implementation works by the chosen IT Implementation Agency (ITIA) have already started. I am happy to inform you that your company has decided to start a new business vertical of providing e-procurement service to PSUs and various Government Departments by setting up an e-procurement Portal with the latest state-of-the-art, ready-to-use, highly secured and pay-as-you-use e-procurement software. TClL has been retained as Consultant by the Ministry of Micro, Small and Medium Enterprises (MSME) for implementation and monitoring of the operation of 'Udyami Helpline' on regular basis. Joint Venture of FreeBalance and TCIL has been awarded a project for "Development of Treasury Management Information System (TMIS) and Human Resource Management Information System (HRMIS) application software alongwith equipment for data centre" for the Government of the Kyrgyz Republic. Your Company has been awarded a prestigious project for implementation of Computer aided education in 1500 schools of U.P under ICT scheme on BOOT basis by Director of Secondary Education, UP. TCIL, as a leading consultant in the e-Governance domain, is providing consultancy services for implementing State Wide Area Networks (SWAN) in Meghalya, Andhra Pradesh and Uttar Pradesh. TCIL completed consultancy services assignment for implementing SWAN in Jharkhand, and Orissa. TCIL is also working as Third party Auditor for Punjab and Maharashtra's SWANs. TCIL is providing consultancy services to Jharkhand Police as well as to Daman & Diu and Dadra & Nagar Haveli Police for implementation of Multisite UHF Digital Radio Trunking System. Your company is providing consultancy services to Andhra Pradesh Police for implementing Crime & Criminal Tracking Network and Systems (CCTNS) project. Department of Information Technology, Govt. of NCT of Delhi (GNCTD), awarded Secured Communications Network based on latest Terrestrial Trunked Radio (TETRA) communication technology for providing efficient communication system which can work across in different groups for secure, seamless, instant and un-interrupted communication between various Govt. agencies, viz., Delhi Police, MCD, Health, Fire, CWG Organizing Committee, etc across the whole of NCT of Delhi during CWG period and thereafter for further seven years. The project, which is the largest TETRA project in India, was implemented in a record time of nine months as compared to similar international implementations. The TETRA Network contributed immensely to safe and successful conduct of the CWG 2010. TCIL has successfully implemented the multi-lingual messaging solution in Cellular network for MTNL, Mumbai. Your company is also executing the third party inspection, project monitoring and supervision of Rural Power Projects under Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY). TCIL has successfully completed and handed over the prestigious Telecom Project for Railtel for the New BG Rail Link in Kashmir Valley. During the year, Civil Division of TCIL has achieved a very high order booking for various civil projects spreading in various parts of India. This includes another ESIC hospital project at Hyderabad, CBDT building works, Jawahar Navodaya Vidyalaya at Banswara (Rajasthan), Special care new born units (SCNU) and trauma centres in Bihar and many more contracts mainly on nomination basis from different clients. TCIL also won Road and Building projects in national competitive bidding in M.P, U.P and Chandigarh. Your company has been awarded a BOT road project i.e. 58 Km long Bina- Kurwai road project in M.P. under a concession period of 25 years. A daily toll collection to the tune of Rs. 0.30 Million (approx) is being collected from our first BOT road project for Bhawanigarh- Nabha- Govindgarh road in Punjab. During the year 2010-11, besides the PAN AFRICAN project through which Company has presence in 47 African Countries, Company continued its operations successfully in United Arab Emirates, Kuwait, Kingdom of Saudi Arabia, Oman, Mauritius, Algeria, Ethiopia, Bhutan, Myanmar, Nepal, Qatar and Sudan. FUTURE PLANS Over the past decade, the industry has been swept up in rapid deregulation and innovation. With new service providers joining the sector, the opportunities are increasing. Vast field of e-networking in the e-health facilities, e-education, virtual universities and e-governance have opened new era of business opportunities for your Company. TCIL looks forward to venture into these areas in India and abroad on the strength of its core competency. TCIL is also having strategic alliances with world renowned organizations with the aim of acquiring new technology and hi-tech expertise. Your Company has been expanding its operations by consistently maintaining high standard of performance and quality of service. CORPORATE GOVERNANCE The aim of Corporate Governance is to satisfy the shareholders aspirations and expectations. Corporate Governance is an important tool for improving efficiency and growth in addition to commitment to fairness, openness and accountability. In this process, your Company is meticulously following the guidelines on corporate governance issued by Department of Public Enterprise for Central Public Sector Enterprise and also complying with other applicable provisions fully. Periodical compliance reports were also sent to DOT as well as DPE. The various Committees of Directors of the Company are also adopting best practices to maintain good Corporate Governance. CORPORATE SOCIAL RESPONSIBITY TCIL, as a responsible corporate, is always conscious about its social responsibility as a part of Corporate Governance Philosophy. During the year, in its endeavour to discharge its responsibility, it has undertaken activities in the areas of Computer Education in 10 schools of Jabalpur District, Madhya Pradesh. The project has been completed and after training, the students and teachers are now able to work efficiently with the computers. ACKNOWLEDGEMENT Before concluding, I would like to take this opportunity to acknowledge my sincere thanks to Company's valued clients both in India and abroad for their constant support, co-operation and reposing confidence in the company. I also place on record my sincere gratitude to Deptt. of Telecom and various Ministries of the Government of India. I also express my appreciation to the outgoing Director for his valuable contribution during his tenure. I also place on record my thanks to the Comptroller and Auditor General of India, Statutory Auditors and Branch Auditors, our Bankers, Exim Bank and ECGC for their valued cooperation. I also wish to record the appreciation for the understanding and support received from Joint Venture Partners and Associates. I also wish to place on record the commendable services rendered by the employees of the Company without which the Company could not have achieved such results. I look forward to the year ahead with a sense of confidence to deliver even greater profitability and order booking adding value to your company's standing. Thank you very much. CHAIRMAN & MANAGING DIRECTOR
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