हिन्दी

Dear Shareholders,

I welcome you all on the occasion of 40th Annual General Meeting of your company. It is my pleasure to present the 40th Annual Report of your Company for the financial year 2017-18 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, let me discuss about Industry scenario and the economic environment before taking up the Financial Performance of the company.

Telecommunications Services has emerged as one of the key drivers of the country’s economy. India is currently the world’s second-largest telecommunications market with a subscriber base of 1200 million and has registered strong growth in the past decade and half. The country is the fourth largest app economy in the world. The Indian mobile economy is growing rapidly and will contribute substantially to India’s Gross Domestic Product (GDP). Every monumental year for an industry brings with it certain decisive turn of priorities that change its landscape, for good. The same has been true for telecommunication this year. FY’18 has been quite disruptive for the industry in India for more reasons than one – and hence quite transformational as well. India’s telecom sector is going through a period of stress owing to growing losses and rising debt, amid heightened competition due to the disruptive entry of Reliance Jio. On the other hand, Technology, in today’s times, is developing very rapidly with innovations every day from different parts of the world. However, on a broader level, technologies like IoT, blockchain, M2M, big data, AR/VR and artificial intelligence have the potential to shape the future. Companies across sectors are understanding these technologies and implementing them to come up with better offerings.

TCIL continues to leverage innovation in technology, adapting to new age developments to facilitate a future that is digital and secure. With our pro-active approach to innovation, your Company is at the forefront of this transformation. Telecom is clearly heading towards a data-centric future, which is destined to throw up its new set of opportunities and challenges. As most of TCIL's business comes from Telecom Projects, the growth/opportunities in the Telecom Industry would drive the growth and new project volume for the company.

PERFORMANCE HIGHLIGHTS

Your Company has achieved a Turnover of Rs. 12608 Millions during the year 2017-18 as compared to the previous year Turnover of Rs. 12051 Millions. The Profit after Tax of your Company was Rs. 461 Million as against previous year’s figure of Rs. 708 Millions. The shortfall of profit is due to Rs. 204 Millions dividend received from BHL, as against a dividend of Rs. 577 Millions in the year 2016-17.

DIVIDEND

This year, your Board has recommended dividend of 30% of the Profit after Tax subject to your approval at the Annual General Meeting.

PROJECTS

During the year, the NFS OFC Defence Network Project spread over states of Uttarakhand, Rajasthan and UP covering a total area of around 9500 km under various Army commands is nearing completion. Project is expected to be completed by September, 2018 barring some OFC Links where work may be delayed because of Right of Way issues- Implementation of ICT@School for providing Computer Education In 591 Schools of Odisha on behalf of Department of Mass Education, ODISHA.

Your Company has completed the supply portion of 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 also successfully 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. Execution work is in progress at all the stations. Approx 1519 Kms of trenching works is completed as on 31st March, 2018.
TCIL has won the BSNL’s WiFi Project funded under USoF for involving Supply, Installation, Commissioning, Operation and Maintenance of 12050 Hotspots at Rural BSNL's Exchanges & associated WiFi Access System at three WLCs Locations (Pune-1, Bangalore & Chennai) on turnkey basis. The work is on fast progress.

Your Company has also been appointed as implementing agency for the implementation of e-VBAB (e-VidyaBharati and e-AarogyaBharati) Network Project, as extended Phase-2 of PAN Africa e-Network Project (PAeNP), to continue providing Tele Education and Tele Medicine services from elite Indian Universities and Super Specialty Hospitals to African nations using Internet as transmission media. TCIL had already successfully executed Phase-1 of PAeNP from 2008 to 2017. The e-VBAB Project is fully funded by MEA, GoI and is envisaged to be implemented in 9 months followed by 5 years of operations and maintenance.

TCIL successfully completed the following prestigious projects under ICT Scheme on BOOT Basis, which are 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.

Under Sawachh Bharat Mission, Ministry of Urban Development has appointed TCIL for setting up the ICT based Feedback system with live monitoring of Dashboard for gathering public feedback in terms of cleanliness of the public toilets across the fifteen states/UTs (A&N Island, Arunachal Pradesh, Assam, Chandigarh, Daman & Diu, Dadra Nagar & Haveli, Goa, Jammu & Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura and West Bengal).

TCIL successfully completed the turnkey implementation of various network components required for the NIB-II Messaging and Storage service Platform, OSS and Billing, Security System and EMS in Data Centers in four cities viz. Bangalore (Main), Noida, Mumbai and Pune (Disaster recovery). The Project is presently under AMC.
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.


MOU RATING

Your Company was rated ‘Very Good’ in its MOU Performance during the year 2016-17. This year, the company is expected to get ‘Good’ Rating in its evaluation under MOU mainly due to shortfall of turnover target.

FUTURE PLANS

TCIL is a premier telecommunication consultancy, and engineering company. Hence, telecom, IT and infrastructure management are at the heart of our operations. We have operated extensively across e-governance, project management and green energy in India as well as in several global markets and we continue to focus on these strengths. We are now also focusing on the new frontiers of Artificial Intelligence, Cyber Security and more.

During the year, TCIL is planning to focus on new lines of business such as:

i) Smart cities & Smart Application, Homeland security projects and Integrated Private Security Projects.
ii) New lines of technology like Carrier-Grade WiFi Enabling, next-gen voice services with VoLTE, Connecting the IoT, Integration with Content etc.
iii) Cyber Security, Artificial Intelligence, VR/AR, Services and Fiber rollout in Bharat Broadband etc.
iv) Next Generation Wireless Services like 5G, VOIP, VOLTE, Mobile applications in rural markets.
v) Business in Rail segment such as Railway signaling Projects, Video surveillance at Railway Stations, GSM - Rollout etc.

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.


CORPORATE GOVERNANCE

As a business entity, we have always believed in staying ahead of the curve with regard to adopting best practices in transparency and corporate governance
Corporate Governance is more than set of processes and compliances at TCIL. We follow global standards of Corporate Governance and continuously benchmark ourselves to adopt the best practices It underlines the role that we see for ourselves for today, tomorrow and beyond. 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..
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. 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 is committed to conduct business in a socially, economically and environmentally responsible and sustainable manner, which enables the creation and distribution of wealth for the betterment of all its stakeholders, internal as well as external, through the implementation and integration of ethical systems and sustainable management practices.
During the year 2017-18, CSR project of Tele-education Network for delivering education in under developed regions, Skill development through Telecom Sector Skill Council, Installation of Solar Lights and Handpumps in Ghazipur, Uttar Pradesh was undertaken by TCIL. Also, TCIL contributed some portion of its CSR Fund to Swachh Bharat Kosh & Clean Ganga Fund.

ACKNOWLEDGEMENT

I would like to express my sincere gratitude and acknowledge the assistance, support and guidance extended time to time by 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.
The inspiration, guidance and support I drew all through this period from other distinguished Members on the Board needs a special mention. I express my sincere thanks to all of them.
And, finally, I would like to place on record our appreciation and sincere thanks to the “Team TCIL”, for their immense contribution in our forward march.


Thank you very much.

CHAIRMAN & MANAGING DIRECTOR