I am glad to welcome you all on the occasion of 39th Annual General Meeting of your company. It is my pleasure to present the 39th Annual Report of your Company for the financial year 2016-17 along with highlights of achievements of the company, the Audited Annual Accounts, Board Report, Independent Auditor’s Report and NIL Comments of C&AG. The copies of the same have already been circulated to you. With your kind permission, I take them as read.
THE ECONOMY AND INDUSTRY
Firstly, I will discuss about Industry scenario and the economic environment before taking up the Financial Performance of the company.
India topped the World Bank's growth outlook for the first time in fiscal year 2015–16, during which the economy grew 7.6%. Growth is expected to have declined slightly to 7.1% for the 2016–17 fiscal year. According to the IMF, India's growth is expected to rebound to 7.2% in the 2017–18 fiscal with the implementation of GST. The long-term growth prospective of the Indian economy is positive due to its young population, corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy.
India’s telecommunications sector continues to be an integral part of the country’s engine of growth, innovation and disruption. Indian telecom network is the second largest in the world after China, in terms of the number of telephone connections. India is gearing to have full tele-density by 2020 and the target seems to be fully achievable with telecom service operators who are expanding their reach every quarter and with renewed focus on rural areas.
Telecommunication today reflects majestic leaps of human imagination, transcending the limits of time and space. The industry is seeing unprecedented progress in terms of innovation and adoption of new technologies that elevate life in so many different ways. 4G as a technology is maturing at a much faster rate than earlier expected, particularly so in India.
Businesses have to change and understand the impact and influence of these technologies. Those who can do it faster and smarter will be the leaders in the new economic world.
With our pro-active approach to innovation, your Company at the forefront of this transformation. The explosion of possibilities brought about by Digital technologies is changing the relationship between business and technology, driving Digital re-imagination across industries, structurally increasing technology spending, and opening up new growth opportunities for TCIL. The advancement/growth in the Telecom Industry would definitely bring new project volume for the company.
Your Company has achieved a Turnover of Rs. 12051 Million during the year 2016-17 as compared to the previous year Turnover of Rs. 13582 Million. The Profit after Tax of your Company was Rs. 708 Million as against previous year’s figure of Rs. 511 Million. There has been reduction in turnover during the year 2016-17 after implementation of Ind AS due to Dollar Devaluation, Slow Progress of Department of Posts’ Rural Information & Communication Technology (ICT) Project, NFS OFC Defence Network, NAVY and Tura Medical College Project.
This year, your Board has recommended dividend of 10% of the Profit after Tax for Financial Year 2016-17 subject to your approval at the Annual General Meeting.
During the year, TCIL continued to execute the NFS OFC Defence Network Project. The work is spread over states of Uttarakhand, Rajasthan and UP covering a total area of around 9500 km under various Army commands.
Your Company is undertaking a Rural ICT-Hardware (RH) Project by Department of Posts, Ministry of Communications & IT, which is a part of the larger IT modernization project being undertaken by the Department of Posts.
Your Company is executing the project of Procurement, Supply, Trenching, Laying, Installation, Testing and Maintenance of OFC, PLB duct, Accessories, Optical Inventory Tool, Fibre Monitoring System, Fibre Intrusion Prevention System for Construction of OFC network on turnkey basis for Indian Navy.
Your Company has been awarded a PMC Work of Construction of Hospital, Medical College, boys and girls hostel, nurse hostel & residential complex by Ministry of Health & Family welfare, Govt. of Meghalaya.
TCIL has successfully completed the following prestigious projects under ICT Scheme on BOOT Basis, which under operation:
- Implementation of ICT@School for providing Computer Education In 591 Schools of Odisha on behalf of Department of Mass Education, ODISHA.
- Implementation of ICT@School for providing Computer Education in 1110 Government and Government Aided Schools across Delhi by Department of Education, Delhi.
TCIL successfully completed the first Phase of the Pan African e-Network project on 30th June 2017 after 8 years of continuous service provisioning and operations in 48 countries of Africa. TCIL has now been selected as the Implementing agency for execution of the second Phase of the Pan African e-Network Project.
Your Company has also completed/executing various other prestigious projects both in India and abroad. These include :
- Implementation of class room based video conferencing solution in 15 centers of National Institute of Fashion Technology (NIFT) across India
- TETRA based Radio Trunking System for M P Police, Ujjain project in which TCIL ccommissioned the Digital Open Standard Radio Trunking System during the SIMHASTHA Mela 2016 and the same is running successfully.
- Implementation of 1600 Kms of OPGW cable on various links of J&K PDD in Jammu and Kashmir for Power grid Corp. of India Ltd (PGCIL)
- In Kuwait, TCIL is executing the project of maintenance of Telecom Network for Ministry of Communications, Kuwait under a Three Years Contract Agreement in Four Governorates of Farwania, Jahra, Ahmadi & Mubarak-Al-Kabir. TCIL Kuwait has also been awarded “ASSE GCC HSE Excellence Gold Award 2017” for Health, Safety and Environment (HSE) procedures in Kuwait by TCIL, from American Society of Safety Engineers (ASSE), Kuwait Chapter.
- Also, TCIL KSA has been entrusted the Fibre Infrastructure Managed Network services which includes Long Distance Network, Access Network, Metropolitan Network and FTTX Network for Eastern and Central region of Etihad Eitisalat (MOBILY) Network in Saudi Arabia.TCIL has also been awarded, by CISCO, the Operation and Maintenance of central and eastern network of SAUDI NATIONAL FIBER NETWORK (SNFN) for Rs 186.90 Million per annum.
Apart from above, there are many other prestigious projects in the bag of TCIL, the details of which have been given in the Director’s Report.
Your Company was rated ‘Excellent’ in its MOU Performance during the year 2015-16. This year, the company is expected to get ‘Very Good’ Rating in its evaluation under MOU due to non achievement of turnover target.
During the year, we encountered some headwinds fuelled by currency fluctuations and other industry challenges. Despite them, we plan to strengthen our operations through a well-considered growth strategy. During the year, TCIL looks forward to venture and focus on following new areas of business like Green Telecom, Digital India initiatives, Cyber security and ICT Development, Smart cities, Homeland security projects, e-Kranti, Smart, Intelligent and Green Buildings, cloud services, Cloud Computing, Broadband, VoiP, CRM, Unified Comms, Wimax, LTE, IPTV, 5G networks, Next Generation Wireless Services, Mobile applications and expansion in rural markets .
With our strategic plans and supporting structure already identified, I believe that we are well positioned to achieve our objectives. Also, we have resolved ourselves for maintaining the current momentum of profitability, protecting the core business while building new capabilities, and diversifying by harnessing the emerging opportunities.
At TCIL, the philosophy of Corporate Governance focuses on creating and sustaining a deep relationship of trust and transparency with all stakeholders. We follow ethical business standards in all our operations globally. TCIL is having a well defined corporate structure that establishes checks and balances and delegates decision making to appropriate levels in the organization, though the board remains in effective control of the affairs of the company. TCIL believes that good Corporate Governance practices are essential for generating long term value and maintaining a sustainable business model.
The Corporate Governance structure of the Company is multi-tiered, comprising of Board of Directors at the apex level and various committees, which collectively ensure highest standards of Corporate Governance and transparency in the Company’s functioning. Board is committed to ensuring there is a strong and effective system of corporate governance in place to support the successful execution of Company’s strategy and focusing on enhancement of internal controls for compliance and governance.
TCIL has laid down a well-defined Code of Conduct for all the Board Members and Senior Management Personnel of the Company, which is also uploaded on the website of the Company. All Board Members and Senior Management Personnel have affirmed compliance to the Code of Conduct.
CORPORATE SOCIAL RESPONSIBILITY
TCIL remained focused on its social responsibilities by undertaking or supporting various CSR initiatives in diversified areas in line with the Schedule-VII of the Companies Act-2013.
During the year 2016-17, CSR project of Skill development through Telecom Sector Skill Council and setting up of Tele-education Network for delivering education in under developed regions was undertaken by TCIL. Also, TCIL contributed some portion of its CSR Fund to Swachh Bharat Kosh.
On behalf of the entire Board of Directors of TCIL, I express my gratitude and acknowledgement to the Government of India, Department of Telecommunications, Telecom Commission, Comptroller and Auditor General of India, all our valuable clients in Public and Private sector, Statutory Auditors and Branch Auditors, our Bankers, Exim Bank, ECGC and other valued stakeholders for their continued co-operation. I am also thankful to all the employees and shareholders for their support and understanding. I also wish to express my appreciation to the outgoing Directors for their valuable contribution during their tenure. I thank you all for your continued trust, encouragement and support.
With renewed vigour, great confidence and relentless determination, we look forward to an exciting future ahead.
Thank you very much.
CHAIRMAN & MANAGING DIRECTOR