ITI Ltd

Dear Shareholders,

I am pleased to present the 74th Annual Report for ITI Limited for the financial year 2023-24. I am delighted to inform you that the Company has complied with the guidelines on Corporate Governance for CPSEs. On behalf of ITI Limited and the Board of Directors, it is indeed an honour and a privilege to share my thoughts with you through the Annual Report 2023-24. This year has been a pivotal one for ITI as we continue to strengthen our position as a key player in India's telecommunications and technology landscape. Our commitment to support the nation's digital transformation and enhancing connectivity across the country has guided our efforts throughout the year.

Dear Shareholders, the telecommunications and technology sectors are experiencing rapid evolution, driven by advancements in digital infrastructure, the rollout of 5G, and the increasing emphasis on secure communications. As a Public Sector Undertaking under the Ministry of Communication, ITI Limited has played a critical role in these developments, contributing to the government's vision of a ‘Digital India' and ‘Make in India'. The growing need for indigenous manufacturing and complete solutions for telecom sector has further highlighted our strategic importance.

Let me now talk about the Financial Year 2023-24. For the Company, the year has been a year of several challenges and unexpected issues. Some of the major projects did not mature during the year due to issues beyond our control. The Proof of Concept (PoC) of the ASCON Phase IV project could not be concluded due to certain technical issues thereby delaying the project rollout and to attain the desired level of performance (billing). Further, there was some procedural delay in award of Work Order for execution of BSNL 4G project which resulted in the rollout of the project at the fag end of Q4 only. These two unwarranted events adversely impacted our performance during the year and the Company's turnover as well as profits suffered a setback in this year. The Company has achieved a turnover of Rs. 1,628.05 Crores with a loss of Rs. 569.06 Crores. The major contribution to the Company's performance came from Projects like ASCON Phase IV, BSNL 4G Rollout, Mahanet, TanfiNet, NFS Project, Gujnet, and IAF project for Upgradation of 3G network to 4G/5G. This year's contribution from Manufacturing was mainly from supply of various products viz HDPE, OFC, Encryption Products, Solar Panels, FDMS, Mini PCs, Laptops, Telephones, ONT-23, 4G eNode-B, Smart cards/DL-RC Cards, and Solar Street Lights. Services like AMC for equipment supplied for GSM-SZ, MLLN/ SSTP, GPoN, Defence Encryptors, Wi-Fi Hotspots, NGN, C-DoT ANRAX, Data Centre, Aadhar Business/ SaaS, VSSC Business, Third Party Audit Services (TPA). Businesses generated by MSPs have also contributed significantly for this achievement.

Dear Shareholders, as mentioned above, the Company is going in a big way addressing the latest technology opportunities for 4G which is expected to pave way for the next generation that is 5G. We have collaborated with TCS for rolling out the 4G BSNL project as well as for manufacturing the 4G Remote Radio Units (RRUs)/Base Band Units (BBUs). Other than Radios, ITI Limited is also manufacturing Outdoor cabinets (ODC) and the CPRI cable required for the roll out. Contract manufacturing of RRU/BBU required for BSNL 4G Rollout project is carried out at 03 of our manufacturing Units: Bangalore, Mankapur and Palakkad. CPRI cable manufacturing is being planned at Raebareli Unit.

Manufacturing and supplies of ODC required for BSNL 4G Rollout project are in progress at Bangalore and Mankapur. Northern regions requirements are being handled by Mankapur Unit.

ITI Limited has also manufactured indigenous 4G Radios with C-DOT Technology (Bands-1,3,8,28,41) which are deployed at various BSNL sites for Proof Of Concept (PoC)and the same is under progress. This will also enable ITI Limited for manufacturing of 4G & later 5G Radios which is expected to be a path-breaking change for the Company. We are also conducting PoC in Railway, for 4G RAN and the PoC is under progress. This is expected to give the Company more openings on the technology front for addressing emerging technology businesses coming from Railways, BSNL and other customers. We are also in the process of stepping into export of 4G RAN.

We have made significant strides in expanding our product portfolio, with a focus on emerging technologies such as 5G, IoT, and cybersecurity. ITI Limited has formalized a strategic collaboration with Lekha Wireless, Niral Networks, and InstaICT Solution aimed at driving the adoption of 5G technology in India. The Memorandums of Understanding (MoUs) recently signed, signifies the beginning of a significant partnership between ITI Limited and these niche entities in the telecommunications sector. This collaboration underscores the commitment of the organization to leverage advanced technology for the enhancement of telecommunications infrastructure in India.

ITI Limited has signed a Memorandum of Understanding (MoU) with JandK Operations Private Limited for manufacturing and providing of BharOS-enabled digital devices and services. This collaboration aims to manufacture and provide BharOS-enabled digital devices, including mobiles, routers, tablets, and more, to enhance the digital security infrastructure of Digital India.

Dear Shareholders,

I am happy to inform that our R&D developed Electronic Voting Machine (EVM) has been approved by Technical Evaluation Committee. ITI Limited has already initiated the process for readiness of infra for mass manufacturing of EVMs and its commercial deployment. The Company is also pursuing with State Election Commissions (SECs) for marketing the EVMs. Another product developed by R&D is the Digital Mobile Radio (DMR) and prototypes have been demonstrated to Indian Railways. In addition to Railways, huge market demand is expected from agencies like MHA, State Police, Defence Forces and so on. We are also making all out efforts to market the services offered from our Data Centre. Data Centre has been equipped to offer wide range of services including Cloud services, Managed Security Services, On-demand Services, Professional Services, Security (SoC), and Managed IT Services. From this Data Centre, we intend to set up a SoC platform to offer services to customers and MSMEs to monitor, prevent, detect, investigate, and respond to cyber threats round the clock. Telecom Test Labs offer wide range of test services across customers ranging from commercial, communication, medical, automotive, railways, industrial, IT, and domestic sectors. EMI/EMC Lab is upgraded for Military standards, and the lab is accredited by NABL and TEC Conformity Assessment Body (CAB), TEC

Delhi. The Start-up Hub is making good progress in attracting start-up firms and there is a need to identify start-ups in telecom domain to be part of this Hub so that we could encourage the innovative products in the Telecom, IoT and other areas by way of manufacturing & marketing of successful products. Our R&D has been a pioneer for last 5 decades in the design & supply of encryption devices to Defence sector.

With regard to the contribution of Units, Mankapur Unit, HDPE Duct Plant has been utilized to manufacture Water Pipes and around 10000 KMs of water pipe has been manufactured till date to address varied opportunities. Unit has also manufactured 30000 Nos of ONTs for RailTel and 1500 Nos of 4-Port OLT to BSNL. Also, Mankapur Unit is manufacturing 4G RAN & Outdoor cabinet for BSNL-4G project. Unit had signed ToT agreement with M/S Wishtel for manufacturing of Tablet PC (Certification BIS, EPR & RoHS) on CKD basis. Mankapur Unit has manufactured 1000 Nos Tablets. Naini Unit has manufactured and supplied 10,000 Nos Solar Modules of 120 Watt out of 20,000 order quantity from M/s. Patanjali required to set up solar street light at Bihar State (BREDA). I'm happy to say that, Naini Unit bagged repeat order worth around Rs.90 Cr from BREDA for the supply, Installation and commissioning of Solar Street Light Systems in the state of Bihar. Further, requirements for Renewable Energy projects in other states are being explored. We have a plan to set up Mono Crystalline Solar Panel manufacturing line of 500 Mega Watt capacity.

Palakkad Unit in collaboration with Intel has been manufacturing and marketing Laptops. The Laptops developed by Palakkad Unit have acquired certifications from BIS, FCC, RoHS, CE, BEE etc. The Desktop Micro PCs have been supplied to various educational organisations and annually around 2000 to 3000 Micro PCs are being shipped from Palakkad Unit. ITI, Palakkad Unit is one of the major industry partner which Vikram Sarabhai Space Center (VSSC) is depending for the realization of Avionics packages. I feel proud to inform that we have received an Appreciation Letter for commendable contribution made by Palakkad Team by way of fabricating avionics packages flown on the launch of Chandrayaan-3 (LVM3-M4) Mission, meeting all the quality norms of ISRO and supplying in a time bound manner.

Our Production Units have manufactured around 26,300 KMs of HDPE Duct for ASCON PH-IV, MahaNet, TanfiNet, GujNet, A&N Projects, Railways, Vodafone and also Indian Air Force (IAF) Projects. Further, Raebareli Unit has manufactured around 25,700 KMs of OFC and supplied for ASCON, TanfiNet, Indian Air Force (IAF) projects, MTNL and Railways requirements. Marketing Team has been exploring opportunities with private operators like Vodafone, Airtel etc so that the facility runs at the maximum capacity. Bangalore Unit is continuing to be a strategic partner for Defence, Paramilitary Forces and MHA for supply of Encryptors, Multi-Channel Encryption Units [MCEUs] and Terminal End Secrecy Devices [TESD]. Unit has received its first ever HDPE order from M/s Aksentt Technology Services for manufacturing and supplying of 500 Km HDPE along with accessories. Also, Unit is manufacturing 4G RAN at CKD level with C-DoT Technology and SKD level of Tejas Technology & Outdoor cabinet (ODC) for BSNL-4G project.

Srinagar Unit is playing a pivotal role in ensuring the smooth implementation and maintenance of critical communication network in the remote locations of the J&K region for ASCON Ph IV and other defence, Bharat Net Projects. This Centre also plays a significant role in upskilling the youth of Kashmir in various fields such as Optical Fibre Cable Laying and Optical Splicing, Data Entry Operator etc. The Company's Order Book remains strong and the same needs to be augmented further so as to enable the Company to achieve sustainable growth. Corporate Marketing Team has been aggressively exploring private market for various products. In this regard, ITI Limited is empanelled with Vodafone for HDPE Duct. Many other initiatives of supplying Mini OLT and ONT, supply of Mini PCs to private institutions, contract manufacturing of Tablet PCs, Laptops, OFC, HDPE water pipes, mobile handsets, are under progress and we hope to get good revenue from these opportunities. Network System Unit (NSU) has contributed maximum for the revenue of the last year. The performance achieved in the main projects executed by NSU is ASCON PH-IV - Rs.300.02 Cr, BSNL 4G Rollout – Rs. 193.25 Cr, Mahanet- Rs. 49.25 Cr, TANFINET- Rs. 74.47 Cr, Gujnet – Rs. 87.57 Cr, and NFS – Rs. 63.60 Cr. Rollout of OFC has been under progress across the Western, Northern & North-Eastern regions of India and 5,865 Kms of T&D, 1,681 Kms of Acceptance Testing (AT) has been completed. Civil construction work has also been making good progress. In the TANFINET project, 61 % of GP litting work has been completed and around 12000 Km of OFC laying work has been completed. We are planning to complete the project by September 2024. Dear Shareholders, to be competitive in the business, Company has been trying to adapt to, and catch up & align with the rapid changes in technology. We believe products like 4G/5G Radios, EVM, DMR may be the game-changers for the Company. We have tough path ahead but our resolute focus is to surpass the obstacles and challenges to march towards complete revival. We have to channelize all our talents & ingenuity towards accomplishment of larger goal. Our utmost commitment is required to excel. Meticulous efforts and steadfast march towards our goal is the need of the hour and would enable the Company to scale up to newer heights. By aligning the Company with the various new initiatives of Government, new technology, new business segments, new projects & products, I am confident that, we can become a prominent player in making Indian Telecom sector self-reliant – Aatma Nirbhar, in the near future. Looking ahead, ITI Limited is poised to play an even more significant role in India's digital future. We are confident that our ongoing efforts to innovate, expand, and enhance our capabilities, will continue to deliver value to our shareholders and contribute to the nation's technological advancement. We remain committed to our mission of providing secure, reliable, and cost-effective solutions to our customers.

I would like to express my heartfelt gratitude to the Government of India, Ministry of Home Affairs, Ministry for Rural Development, Ministry of Defence, Department of Telecommunications, Telecom Commission, BSNL, MTNL, BBNL, Defence, TCIL, Indian Railways, all departments of Central and State Governments and other valued customers, depositors, banks, financial institutions, overseas collaborators, Auditors, Committee on Public Undertakings [COPU], Standing Committee on Information Technology and Standing Conference of Public Enterprises [SCOPE] for their continued co-operation and I also take this opportunity to extend my thanks to all the employees and shareholders for their support and understanding. Your trust and confidence inspires us to strive for excellence in everything we do. Together, we will continue to build on our legacy and drive ITI Limited towards new heights.