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 2024, Auditors report and comments on the Accounts by the Comptroller and Auditor General (C&AG) of India. The revival package of Rs 4156.79 Crore (Rs1892.79 Crore as grant-in-aid and Rs 2264 Crore as Capex Fund in the form of equity) as approved by the Cabinet Committee on Economic Affairs (CCEA) in February 2014 for ITI Limited, has helped in the Company's turnaround. The entire grant-in-aid of Rs. 1892.79 Crore has been received out of Rs. 4156.79 Crore. Out of Rs. 2264 Crore, ITI has received Rs. 1132.56 Crore of the Capex Fund. The Capex Fund has been invested for upgrading the manufacturing infrastructure at various Units of ITI to cater to the need of emerging technologies in the domain of Telecommunications, Electronics and ICT products, services & solutions. The State-of-the-art infrastructure established under revival package funds boosted the manufacturing strengths to cater for domestic market demands under Make in India mission of Government of India. These projects have helped ITI Limited to regain its manufacturing strength.

The performance of the Company (Standalone basis) for the financial year 2023-24 compared to the previous year 2022-23 is as under: Rs. in crores

The Consolidated Revenue from operations at Rs. 1264 crores (PY Rs.1395 Crores) reflect a decrease of 9% compared to the previous year. The profit / (loss) before tax and Profit / (loss) after tax for the financial year 2023-24 were Rs. (568.92) crore against Rs.(359.85) crore during the previous year.

The Company has achieved the turnover of Rs. 1628.05 Cr during FY 2023 - 24 against Rs. 1588.60 Cr during the previous FY 2022 - 23.

Our Company is the leading Electronic manufacturing provider for 4G Radio Equipment, and 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 /Smaash PC, Solar Panels, Optical Fiber Cable, HDPE, Water Pipes, 4G RAN Equipments, Tablet PC, ONT, FDMS, telephones, Smart cards etc at its various Units.

The Order Book position of the Company stands at 11871.25 Crores (including APO of 11.53 Cr for Solar LED street lights).

Y ITI Limited has bagged a Purchase Order (PO) from BSNL worth 2421 Crores for its 4G rollout. BSNL has issued a Purchase Order (PO) for 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.

Y ITI Limited, Palakkad was one of the major industry partnered with VSSC for the realization of Avionics packages. Various packages fabricated by ITI Limited, Palakkad have successfully flown in LVM3 M2 Mission. Palakkad plant was involved in ISRO's prestigious Chandrayaan mission LVM3-M4 which launched on 14th July 2023. 55 nos of packages are tested and deployed by ITI Palakkad team, out of the total packages which were used in the mission.

Y ITI Limited, Naini Unit has Signed MoU with M/s Patanjali Renewable for implementation of BREDA Solar Project.

Y ITI Ltd Naini registered in the Ministry of New and Renewable Energy (MNRE) and Uttar Pradesh New Renewable Energy Development Agency (UPNEDA) National Portal Scheme under PM Saurya Grih Muft Bijali Yojna. Y ITI Ltd Naini has been Enlisted in ALMM (Approved List of Model and Manufacturer) Ministry of New & Renewable Energy (MNRE).

Y ITI Ltd Naini has successfully revalidated the BIS certification for Poly crystalline Solar Modules up from 40Wp to 325Wp validity up to July-2026.

Y Mankapur Unit Started Manufacturing of Tablet PCs with the support of back end ToT partner for Tablet and Laptop Technologies.

Y ITI Bangalore plant has received ODC (Out Door Cabinet) order from M/s. Tejas Networks Ltd for manufacturing and supply of 3164 Nos for BSNL 4G Rollout Project worth of Rs.10 Cr and the Qty is being manufactured and supplied by Bangalore and Mankapur Units. ITI Limited Bangalore plant 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 POC in BSNL network. PoC testing at Ambala sites has been completed and Faridabad is in progress. RAN Prototypes in other Bands Nos 1, 41 and 3 are manufactured and are at different stages of testing at C-DoT. ITI has also participated in RAN PoC of Indian Railways. PoC testing is under progress at Secunderabad region.

During FY 2023-24, Bangalore plant has generated revenue of Rs. 63 lakhs against supply of RAN Equipment for PoC and BEL requirements

Y 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 be used for testing Industrial, Scientific, Medical and IT equipment for Emission and Immunity requirements of TEC as per International Standards. Further Commercial equipment can be tested as per CISPR 11/22/15/32.

Y NABL Renewal Audit of EMC Lab is completed successfully along with expansion of scope including 125 tests.

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).

Orders from Defence organisations like SITAR, BEL, HAL and their system developers are received by EMC Lab to test defence equipment.

(Value in Rs Crore)

There was no change in the Authorized Share Capital of the Company during the year 2023-24.

During the financial year 2023-24, pursuant to the BIFR order dated 08th January 2013, the Board of Directors had allotted equity shares to the President of India on preferential basis against CAPEX received on 23rd March 2023 from Government of India, details of which are as follows:

Accordingly, during the financial year 2023-24, the paid up Equity Share Capital has increased to 9,60,88,69,380.

During the year under review, the Company has not granted stock options or sweat equity shares. As on 31st March 2024, 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.

As the Company had incurred loss during the year 2023-24 and still has accumulated losses of previous years, the Directors are not in a position to recommend any dividend for the year 2023-24.

As the Company still has accumulated losses, it has not transferred any amount to General Reserve.

In the FY 2023-24, Bangalore Plant has achieved the Turnover of Rs 145.86 Crores. The turnover mainly consists of Manufacturing, Services and Projects.

The Secrecy products for Defence Communication Networks and other Ministries are being designed by our R&D and manufactured, supplied & maintained by ITI for 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 NFS network, ASCON network etc.

Y Bangalore Plant has Designed, Manufactured and Supplied 39 Nos. of Bulk Encryption Units to Army, Eastern Command and Western Command worth Rs. 3.38 Crore.

Y Rs. 1.59 Crore revenue generated against supply of servers to MCEU Project of Defence.

Plant has Supplied 448 Nos of Field Telephone (5C) and 1600 Nos of Caller ID phones to ISRO, Ashok Leyland, Indian Navy and generated revenue of worth Rs. 1.21 Crore.

Bangalore plant has received its first ever HDPE order from M/s Aksentt technology for supply of 500 KM. Unit has manufactured and supplied well within the timelines and generated revenue of Rs. 3.14 Crore. Also, Unit has manufactured & supplied 836.35 KM of Water pipes and generated revenue of Rs. 17 lakhs.

Bangalore Plant has been providing services to internal as well as external customers for 3D Printing . Bangalore Plant has bagged orders for manufacturing of Satellite study models, Mechanical Enclosure for satellite PCB assembly, and also supplied 3D Kits to the Gaganyaan project for our esteemed customers URSC (ISRO - Bangalore), VSSC (ISRO - Kerala), IIT - Kanpur & Ajax construction.

Y Total Revenue generated in FY-2023-24 from external customer, Rs. 41 Lakhs.

Y Rs 16.2 lakhs (Approx) worth work has been executed for internal R&D purpose.

4G Manufacturing infra installed last year for 4G RRU/ BBU, has become operational.

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. Total revenue generated from the Lab is Rs 1.87 Crores for the financial year 2023-24.

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. Commercial equipment can be tested as per CISPR 11/22/15/32. Revenue generation for FY 2023-24 is around Rs. 1.65 Crore.

Bangalore Plant 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. For the year 2023-24 revenue generated is of Rs. 47 Lakhs.

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 AMC, BSNL has extended the AMC up to Dec- 2021 for 70 Cr and further extended the order worth Rs 65 Crores for one more year i.e upto Dec 2022 which ITI Bangalore Plant has executed successfully. ITI Bangalore plant has also received confirmed extension order for 2023 AMC worth Rs 43 Cr and Rs 45.11 Cr for 2024 for BSNL South Zone Circles.

Data Centre is a physical / virtual infrastructure used by enterprises to house computer, Servers, Networking Systems and components for the organization's information technology (IT) needs, which typically involve storing, processing and serving large amounts of mission critical data to clients in a client/server architecture. As a consequence, the security and reliability of data centres is of top priority for any organization. ITI New Data Centre is a newly built facility of ITI Limited. The Data Centre is located at its premises in Bangalore. It endeavours to provide customer-centric services to all the sectors.

This Data Centre is serving customers from Aviation, Universities, R&D institutions of Govt. of India, PSUs, MNCs and small enterprises from the year 2020-21.

Considering the huge market demand in view of Digital India Initiative and Governments decision to store the data and the financial transactions generated in Servers located in India, ITI has taken up Data Centre expansion in a big way. The large 1,25,000 plus sq. ft capacity of ITI Data Centre is fully equipped with excellent facilities as well as next generation technology capable of housing 937 racks to provide all kinds of data centre services.

ITI data centre is designed to provide various services like Co-location, Managed & Cloud services. Email, Internet, back up services & SOC are also part of the offering. SOC-as-a- Service is a managed Security Operations Centre (SOC).

It is fully geared up to support multi density power requirements ranging from 3 KVA to 14 KVA per rack. It has an edge over other Data Centres not only through its complete range of Services but also with its infrastructure, effective and eco-friendly fire suppression facilities but also its high level of security, carrier neutrality, redundant power availability, precision controlled environment and 24 x 7 support services with no down time in its whole history.

The Data Centre is a carrier neutral i.e. well connected with multiple ISPs ensuring high availability of Internet Connectivity.

The customers are also offered with seating facility, workstations & cabins, for their operating & maintenance staff and a NOC room for monitoring the performance.

Revenue generated from Data centre for FY 2023-24 is Rs. 26.36 Crore.

ITI Data Centre is TIA -942 Tier-3 certified and there are several layers of security conforming to international standards viz. ISO 9001, 20000, 27001, 27017 and 27018. It is 99.982% availability as per Tier 3 standards, which is concurrently maintainable, allowing for any planned maintenance activity of power and cooling systems without disrupting the performance of the Data Centre.

It is also CMMi level 5 certified for IT operations. The datacentre has been successfully audited for Meity Empanelment as Cloud Service Provider for providing cloud services such as IaaS, PaaS and SaaS under Public, private and Hybrid cloud infra. ITI has also Government Community cloud GCC for critical and confidential Government customers.

ITI has a state-of-the-art Security Operation Centre (hereafter referred as SOC) offering SOC as-a-Service (hereafter referred as SOCaaS) to customers from various sectors like commercial, industrial, scientific, medical, communication, IT, etc. The SOCaaS is to monitor, prevent, detect, investigate, and respond to cyber threats round the clock. SOC services are used for monitoring and protecting the organization's assets including intellectual property, personnel data, business systems, and brand integrity. The ITI SOC acts as the central point of collaboration in coordinated efforts to monitor, assess, and defend against cyber-attacks.

The customers are also offered with seating facility, workstations & cabins, for their operating & maintenance for monitoring the performance.

ITI also manages various SOC and /or Cyber Security related projects for other customers at their place or at various field location across India. The Nature / Scope of project is to manage various Network equipment, Network backbone connectivity, Cyber security tools, Devices/HW/SW, Reporting & operations.

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. ITIe-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.

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. While fully meeting the customer requirements, the products developed by Company are state-of-the-art, competitive and in corporate highest quality.

Research & Development (R&D) located in Bangalore plant 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 8Kbps to 10Gbps data rate over different media and also in development of Network solutions. The R&D team develops allied products in area of Transmission and terminal products.

The strength of R&D lies in its skilled design team with expertise in development of Hardware & Software. The necessary infrastructure to aid design & development is available in the form of latest Test Instruments, Software design tools, CAD design tools, reliability lab, EMI/EMC test lab and Telecom testing lab.

The successful products Solutions developed in Financial Year 2023-24:

The Encryption products have been successfully undergone Field trails and testing, & evaluation has been done by customers.

In the year 2023-24 R&D initiated development of new products like Smart Energy Meter, Integrated Terminal End Secrecy Device, Field Cipher Equipment MK II for Army, E1 Encryptor for Eastern command (Army) and R&D is in the process of development of spare Algorithm for MCEU etc.

In the FY 2023-24, Palakkad Plant has achieved the Turnover of Rs. 42.12 Crores.

Palakkad Unit continue to make headway in the IT Sector with winning repeated orders from customers like Keltron, IIT Palakkad, Universities etc for supply of IT hardware. It is also engaged in supporting various requirements like Examination Management System of Universities and Digitation of records. It continues its stride in the Space Electronics Sector with its contribution in fabricating avionics packages for various prestigious missions of ISRO like PSLV C56, PSLV C57, Aditya L1 etc. in addition to screening of components. It has also started executing orders for space electronic packages for HAL-L&T consortium for PSLV. It also contributed to the prestigious ASCON Project through supply of PLB HDPE Duct to various locations.

After successfully established the ITI Smaash brand in the Micro PC segment, ITI Palakkad has now ventured into manufacturing ITI Smaash brand laptops. 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 CE, FCC, RoHS, BIS, and BEE, making them a 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.

During FY 2023-24, Unit has manufactured and supplied 354 Nos of Laptops to Various customers and generated revenue of Rs. 1.3 Crore.

ITI's Smaash branded Mini PCs have strengthened their 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 DSERT/DPI. The product has garnered attention from esteemed customers including KSEDC, Kerala e-Health, AIR India, NIC, Kerala Forest Department, National Urban Health Mission, NIC, Calicut University, Kannur University, and various educational institutions. In addition to Mini PCs, the Palakkad Plant 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.

During fiscal year 2023-24, ITI Palakkad Unit has won Kerala e- Health tender for Supply, Installation, Commissioning & Maintenance of Hardware Equipment for Hospitals under e-Health Project in Kerala., worth 8.72 Cr (all inclusive) includes 1760 Nos of ITI Smaash Micro PC.

During FY 2023-24, Unit has manufactured and supplied 647 Nos of Mini PC to Various customers and generated revenue of Rs. 3.84 Crore.

ITI Palakkad Plant is associated with Vikram Sarabhai Space Centre (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 (Vikram Sarabhai Space Centre), LPSC (Liquid Propulsion System Centre) and MVIT (Mechanisms and Vehicle Integration Testing) 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. During FY 2023-24, Rs. 2.50 Crores revenue has been generated.

ITI Palakkad plant 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.

Motor vehicle department of Kerala, issued a Work order for printing of Driving Licenses and Registration Certificates in PVC Pet G card (without chip) to fulfill statewide requirement and supplied 24 Lakh Cards and clocked Rs. 16.81 Cr turnover.

Anticipating increased demand of OFC and 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 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.

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 16.06 crore from

BSNL for the AMC (card repair and technical support) extended to MLLN projects for BSNL.

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. ITI Palakkad has achieved turnover worth Rs 77 Lakhs during FY 2023-24.

RRU/ BBU manufacturing facility has been made available at Palakkad Unit also with an Annual Capacity of 12000 Nos of Units put together. Contract manufacturing orders from M/s. Tejas Networks Ltd is expected shortly.

In the FY 2023-24, Mankapur Plant has achieved the Turnover of Rs. 53.15 crore.

Mankapur Unit has signed an agreement with M/s Katariya Plastics Pvt for manufacturing of water pipes/Telecom ducts on contract basis. Water Pipes for M/s Katariya manufactured and PLB Duct 40/33 manufactured, supplied against Aksentt Technology Services PO for BHARATNET and MAHANET project. Total Revenue generated from HDPE Duct/ Water Pipes during FY 2023-24 is Rs. 12.24 Crore.

4G Manufacturing infra installed last year for 4G RRU/ BBU has become operational.

Mankapur Unit has partially supplied (10000 Nos) against order from C-DOT for the supply of ONT23 to Railtel for the quantity of 40,000 nos. Revenue generated during FY 2023-24 is Rs. 1.85 Crore.

Mankapur Unit procured material and started production of 4P OLT against order from BSNL for the supply of 1500 No's including 5 years AMC services.

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. Work of Jharkhand and Odisha have been completed. Revenue of Rs. 64 Lakhs has been generated in the FY 2023-24.

Business carried out for the in-house developed and manufactured products 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). Revenue of Rs. 23 Lakhs has been generated in the FY 2023-24.

Employee Development Centre (EDC) of Mankapur 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. Rs. 11 Lakhs revenue has been generated in the FY 2023-24.

Mankapur Unit Started Manufacturing of Tablet PCs with the support of Whistel Pvt. Limited, ToT partner for Tablet and Laptop Technologies.

The Unit started manufacturing of ODC against PO of Tejas Networks Ltd, Bangalore.

In the FY 2023-24, Rae Bareli Plant has achieved the Turnover of Rs. 59.08 Crores.

The Indian optical fiber cable market is gaining attraction. 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 2023-24, Rae Bareli unit has manufactured more than 8000 KM & supplied OFC for ASCON, TANFINET project, MTNL and Railways as stated below:

1. ITI RB has supplied around 3000 KM 24F OFC to Defense ASCON Ph. IV project.

2. ITI RB has supplied around 2800 KM OFC to various zones of Indian Railways.

3. ITI RB completed the 335 KM 96 F OFC supply order of MTNL (Mumbai & Delhi) Regions.

Revenue of Rs. 32.52 Crore generated during the FY 2023-24.

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.

Rae Bareli Unit is equipped with excellent manufacturing infrastructure for production of HDPE Ducts with annual capacity of 28,000 KM. During FY 2023-24, Rs. 39 lakhs revenue has been generated.

ITI-RB has facility for SMPS manufacturing of different varieties/ ratings of systems.

In FY 2023-24, apart from AMC of various BSNL circles, SMPS systems & support were also provided to ASCON defense project PoC work. Revenue generated during FY 2023-24 is Rs. 53 Lakhs from AMC works.

In the FY 2023-24, Naini Plant has achieved the Turnover of Rs. 52.44 crore. The turnover mainly from manufacturing and services.

Y Naini Plant has state-of art manufacturing facility for Solar Panel manufacturing with annual capacity of 18 MW.

ITI Naini Plant has manufactured 9823 nos. 120W Solar PV Module of the value Rs. 3.37 Crs against 20000 nos. order worth Rs. 6.85Cr received from M/s. Patanjali.

ITI Ltd Naini Successfully supplied 1125 nos. of 60Wp SPV panel to BBNL through GeM contract worth Rs 0.21Cr.

ITI Ltd Naini Successfully supplied and installed 150KW On-grid Rooftop Solar Plant at NTPC, Vindhyachal, 265KW On-grid Rooftop Solar Plant at NTPC, Bongaigaon and 100KW Roof Top Solar Power Plant at ITI Ltd corporate office cumulative worth Rs. 1.47 Cr.

ITI has successfully completed Supply & installation of 21620 Nos. Solar Street lights System in BREDA Project, value Rs 46.01 Cr.

ITI Ltd Naini received the Letter of Intent (LOI) for qty 2800 nos. worth Rs. 8.58Cr. From Bihar government against BREDA project. ITI Ltd Naini has done the AMC of qty. 15392 nos. worth Rs. 1.38 Cr. 12W Solar Street Light System against M/s Uttrakhand Renewable Energy Development Agency (UREDA) project.

ITI Limited received the work order for 200 nos. worth Rs. 0.75Cr for Design, Supply, and Installation & Commissioning with 5 years comprehensive warranty Maintenance of Solar PV Power Packs of 200 watt with Li FePo4 battery (including 5 nos. LED Lights, One DC Ceiling Fan and a 25watt DC Power plug with mobile Charging USB) in various houses in the state of Uttar Pradesh from M/s Uttar Pradesh New Renewable Energy Development Agency (UPNEDA).

PDI has been done, it is under advance stage for supply of material.

1) Execution of Project:

Srinagar Unit is executing and ensuring the smooth implementation and maintenance of critical communication network in the remote locations of the J&K.

2) Skill Development Center:

This center 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. It contributes significantly to skill enhancement of local youth and employment generation in the region.

1. GujNet Project:

The Bharatnet Phase-II Package A "Gujnet" project initiated by BBNL/GFGNL, with an ambition of providing high-speed broadband connection to the uncovered Gram Panchayats of Gujarat, is being executed by ITI Limited with the support of OSP partners finalized through open tender during 2019.

The first part of the project consists of 3925 GPs across the 3 Islands spread over 12 districts / 70 Blocks. Each island has a GPON network connected through optical Fiber Cable/DWDM/ RFMS from GFGNL State Data Center at Gandhinagar, with the Optical Line Terminals (OLT) at Block level and Optical Network Terminals (ONTs) and L2 Switch at Gram Panchayat level. The second part of the project consists of the operation and maintenance of 3925 GPs along with Add-On GPs (336 GPs) across the 3 Islands spread over 12 districts / 70 Blocks. Island-1 O&M was started in the month of OCT 2020. Further, O&M of remaining blocks was progressively started from Dec-2020 to Dec-2021. ITI has also received a similar work order for 52 GPs APO and 5 GP scope. 4274 GPs (99.88%) are lit out of 4279 GPs (Initial Scope of 3925 + 304 (out of 336 APO) + 45 (out of 52 APO) + 5 APO). GIS pending in BBNL portal for one block (Limkheda Block) due to T&D pendency in 3 APO GPs. The pending work shall be completed by 30-09-2024. The AT for 58 GPs is pending in the main scope and AT for 14 GPs are pending in 336 APO.

2. MahaNet Project:

ITI is executing a turnkey project for the provisioning of broadband connectivity across Maharashtra State. This project includes the laying of 20,329 Kms Underground (UG) and 17,841 Km Aerial (OH) OFC, Establishment, Commissioning and Maintenance of a Network comprising IPMPLS (IP Multi-Protocol Label Switching) Routers, Switches, Solar equipment, Microwave radio, Wi-Fi hotspots and Network Operating Centre (NOC). As of 31-03-2024; T&D work of 18,350 km and aerial OFC laying of around 14,843 Km length has been completed. The Total Project value is around Rs. 2937 crores including GST.

Further, ITI has received the Operation & Maintenance (O&M) work order for Package A, dated 23.08.2023 for the MahaNet-I (BharatNet -II) Project in Maharashtra, the total value of WO for Package A is Rs. 267.90 Cr (Excl. of GST) for 3 years including a 1-year warranty.

ITI received the Operation & Maintenance (O&M) work order for Package C on 23-08-2023 for the MahaNet-I (BharatNet-II) Project in Maharashtra on 18-08-2023, the total value for Package C of the O&M work order is Rs. 188.25 Cr. (Excl. of GST), the period of O&M is for 3 years which includes a 1-year warranty.

3. TanfiNet Project:

ITI is executing a turnkey project for the provisioning of broadband connectivity across Tamil Nadu State. This project includes the laying of 1,924 Km Underground (UG) and 12,703 Km Aerial (OH) OFC. The total Project value including three-year O&M is around 458.24 Crs. As of now, T&D work of 1,407 km and aerial OFC laying of around 10,055 Km length has been completed. As on date, a total order value of around Rs 229.5 Crs has been executed against this project. Total GP and Blocks LIT UP scope is 3103 GPs and 109 Blocks spread across 10 districts of the southern part of Tamil Nadu, out of which 1500 GPs and 109 Blocks Completed. We have submitted bills for 192.60 Crs and received payment for 104.56 Crs. We have also received an AT certificate for 235 GPs and converted 3 Blocks into O&M.

4. Andaman & Nicobar Islands:

ITI has received an order worth 37.27 Crore from BBNL for the implementation of the BharatNet Phase-II project including Supply, Installation, Testing and Commissioning of OFC (underground) and GPoN Network as well as O&M (operation & maintenance) across the Union Territories of Andaman & Nicobar.

The total number of GPs in ITI scope i.e., 68 are lit in 7 blocks. A total order value of 28.34 Crores has been executed against this project and 18.60 Crores has been achieved till date. The project is in the closure stage of Implementation.

ITI has received 05 orders worth 485 Crore from BBNL/BSNL for implementation of the BharatNet project which includes supply, installation, testing and commissioning, 02-year warranty, and 05-years AMC of GPON equipment.

More than 90% of I&C work has been completed and 04 POs are under the AMC phase. AMC services for this project are being provided by our in-house engineers. Till 31st March 2024, we have received Rs. 384 Cr. of the order value from the BSNL.

As part of the Atmanirbhar initiative, the Government of India has chosen BSNL for a prestigious project of indigenous 4G telecom equipment to achieve self-reliance in the telecom gear segment to fulfil domestic market needs and in response, ITI has been awarded an RQ order by BSNL vide APO dated 19-05-2023 followed by the circle's POs received in June/July 2023. ITI along with TCS as a consortium partner under Phase IX.2 is executing a turnkey project for provisioning 4G mobile network for BSNL WZ states Maharashtra, Goa, Gujarat, Chhattisgarh, Madhya Pradesh & Mumbai LSA. The project consists of RF planning, engineering, supply, installation, testing, commissioning, integration and annual maintenance of the 4G mobile network at 23633 sites in the west zone. The total project value is approx. 2450 Cr.

As per the delivery schedule mentioned in the tender, the first milestone 1st Batch and 2nd batch supplies of the 479, 1415 radio equipment have been delivered to the respective BA for all 5 circles of the west zone as per the priority sites/list given by the BSNL and 3rd batch of 116 No's has been supplied and the further supplies are under process.

As on date, ITI has supplied 2066 No's and has completed the Installation of 2016 No's, Integration – 1755 No's and On Air – 1689 No's. Also, ITI has billed an appx. amount of 200 Cr. to BSNL.

1. ASCON Phase-IV

The Company has signed a contract with the Ministry of Defense for the execution of the mega order of the Army Static Switched Communication Network (ASCON) Phase IV project worth Rs 7,796.39 crore (CAPEX & OPEX). It includes Installation, commissioning, and maintenance of telecom equipment, NMS, mobile nodes, and civil works for providing the complete infrastructure at various sites and roll-out of the optical fiber network. Contract value has been revised to Rs. 8,280.36 crore in Nov 2023.

In the network part, the project covers an IP-MPLS-based communication network with microwave radio & satellite spread across northern, northeastern, and western regions. There are a total of 62 MW radio links and 61 satellite nodes which includes 2 hubs. There are a total of 256 static nodes, 10 Zonal Centres and 2 Central Zonal Centres in the network. Furthermore, there are 86 Mobile nodes mounted on 8X8 Tatra vehicles housing the communication and power systems. The implementation of the project is to be completed in three years and thereafter it must be maintained for ten years including a two-year warranty. The project timeline has been revised on ITI request and the Project must be handed over to Army by Dec 2025.

For PoC activities, the test bed is set up in Delhi. The test bed has IPMPLS, Microwave equipment, Satellite equipment, power systems, UNMS and Net Synchronization. As on date, the PoC test trial has been successfully completed for OFC, Microwave Radio, Satellite, Power systems, Network Synchronization, and Test Instruments. The PoC test trial of the IPMPLS router is in progress and likely to be completed by June 2024. Subsequently, UNMS POC test trials will be taken up followed by Integrated POC. Under project Rollout survey work on OFC, Equipment Nodes, Microwave, and civil construction are under progress. As on date, out of 166 optical links work is completed for 88 links and AT is completed for 86 links covering 4488 km. The remaining links work is in progress and is likely to be completed by October 2024. Under civil construction, there are a total of 183 buildings (17 new buildings, 51 upgrade buildings, and 115 new infrastructure). Work is in progress for 97 buildings out of 183 buildings. Out of 36 Microwave towers work is in progress for 8 sites.

Equipment Delivery and network roll-out will start from Sep 2024 and node-level activities will be finished by June 2025. The project is mainly delayed because of the Country-of-Origin Issue.

2. Airforce Projects a. G2G - Upgradation and expansion of AFCEL 3g WCDMA network to 4g LTE / 5g NSA network:

ITI is executing a turnkey project worth Rs 233.16 crore for the Indian Air Force for the upgradation and expansion of the AFCEL 3G WCDMA network to 4G LTE/5G NSA network. It includes Installation, commissioning, and warranty of 2 Core Mobile Switching Centre, 4 Access sites and 469 eNodeB/gNodeB RAN sites.

2 Core (Prayagraj & Jaipur) locations and 4 Access (Wadsar, Bangalore, Barnala, Bagdogra) locations include I & C of Power infra, cloud setup for 4G and 5G NSA core User plane and Control Plane, security solution for Network and video wall for monitoring of network.

A total of 469 RAN is to be installed at 167 geographical locations across India. 148 sites are existing sites, towers need to be upgraded to eNodeB (4G) and gNodeB (5G), 102 existing sites are to be upgraded to eNodeB (4G) only. 45 sites are newly built Sites where the Ttwer foundation and civil, power works for providing the complete infrastructure have to be done. 100 eNodeB (4G) sites are In Building Solution (IBS) and 74 eNodeB (4G) sites are on Digital Mobile Relay Radio (DMRR) vehicles and operating on 700MHz frequency.

The project also includes Supplying and laying a 200 Km Optical fibre cable with accessories to connect the RAN site to the backhaul network wherever required.

At present, I & C of both core location and four access locations has been completed and Cloud setup is done with testing of 4G and 5G services. Security solution is in progress and policy implementation work is going on with the AFNET team. AT is in progress at core and Access locations.

As on date, out of 469 eNodeB/gNodeB 270 RAN sites have been installed and 229 RAN sites are ON Air. AT of RAN sites of Delhi NCR region are ongoing.

ITI is executing a turnkey project for the Indian Airforce (IAF) for the Upgradation of Ops Application Systems in which Data Centers at 05 (Five) locations (Delhi, Mumbai, Bangalore, Prayagraj and Shillong) have to be upgraded with hyper-converged infrastructure (HCI) Technology. The Total Project value including 02 (TWO) years of warranty is Rs. 269.41 Crs. The project is completed and is declared Go-live w.e.f. 01-10-2023. Presently, the project has been in the warranty phase since 01-10-2023.

3. NFS Project

Network for Spectrum (NFS) is a dedicated communications network. The telecom department (DOT) is setting up this network for the Defence Forces - in lieu of airwaves (Spectrum) to be vacated by Defence for civilian use.

This (NFS) mega network will be deployed with state-of-the-art Optical Fiber Cable (OFC) technology which will form the backbone optical highway infrastructure and serve as a highly resilient and reliable communication media for the Defence sector. Once complete, the state-of-the-art dedicated OFC network for the Army, Navy, and Air Force will enable improved voice and data communication and boost homeland security for the country.

The network is a highly resilient exclusive nationwide optical backbone covering total OFC routes, aggregating 57,015 km. The network will connect 414 Defence sites and access networks (i.e., 219 Army stations, 33 Navy stations & 162 Air Force). The PICG has been created for the planning, operations, and maintenance requirements of this project on behalf of the Ministry of Defence.

The Defence NFS project consists of a total of approx. 57,015 km of OFC route, is divided into seven packages (A, B, C, D, E, F & G). BSNL, the implementation agency for India's Defence

NFS (Network for Spectrum) optical fiber cable (OFC) project has awarded Purchase orders for all seven packages. Out of seven packages, BSNL has placed Purchase Orders on ITI Ltd for Package - F and Package- G. ITI Ltd Raebareli has been allocated Package-G. For this Package, BSNL PO value on ITI Ltd is 1267.30 Cr (Material + Services) + Rs 550.56 Cr (AMC for 7 years for maintaining the network once it is laid) covering 7518 Km of OFC laying.

PKG-F: ITI Ltd Mankapur has been allocated Package-F. For this Package, BSNL PO value on ITI Ltd is 915.75 Cr (Material + Services + Restoration Services) + 322.47 Cr (AMC for 7 years for maintaining the network) covering 5791 Km of OFC laying for 102 Links. 98 links out of 102 links are commissioned in Package-F and turnover for Package F during the current FY: 23-24 is 14.7190 Crore and the Un-billed turnover booked in this FY is 21.4615 Crore.

PKG-G: As on date execution of 103 Links out of 110 Links has been completed, and the turnover for Package G during the FY: 23-24 (Incl. of GST) is 24.75 Cr.

ITI has received an order worth 26.73 Crore from Airtel for OFC laying, Trenching, and digging work for the NLD backbone for 824 Km. All work has been completed successfully and got an AT Certificate for 738.94 Km. Billing of Rs 23.68 Cr has been done. AT is under progress for the remaining Kms.

ITI Limited is carrying out the Pilot Project in rural areas of Karnataka state for utilization of BharatNet under the Universal Service Obligation Fund (USOF) to execute indigenously developed technology utilising E- band and 4G/LTE-based solutions. The purpose of this pilot project is to reap the benefits of innovation and strategy in the private sector, academic & research fraternity for better utilization and improved service delivery to the citizens by utilizing BharatNet. ITI has received a work order of worth Rs. 39.84 Cr. (Excl. of GST) from USOF.

MAJOR PROJECTS:

MAJOR PROJECTS:

EFFORTS UNDERTAKEN BY CORPORATE MARKETING DURING YEAR 2023-24:

The Company's rating for the FY 2022-23 is "Poor" with a composite score of 25.50. During Inter-Ministerial Committee (IMC) meeting held on 28th June 2023, IMC recommended to exempt ITI Limited from signing of MoU for FY 2023-24 and 2024-25.

The Company has undertaken many initiatives/ projects so as to boost the turnover and implement the Revival plan.

SD-WAN (Software Defined Wide Area Network) Solution.

The software-defined wide area network market is poised to record a CAGR of 31.6% from 2022 to 2032. The software-defined wide area network market is likely to touch US$ 53.8 Billion by 2032 from US$ 3.4 Billion in 2022. The increased demand for mobility services, as well as the rising emphasis of enterprises on lowering OPEX with SD-WAN, are expected to foster the software-defined wide area network (SD-WAN) market growth to a considerable extent.

ITI is in the process of selection of a suitable partner for manufacturing of SDWAN products and solutions. PARTNER will be assisting ITI in setting up the production lines design, Manufacture and test the SDWAN solutions for the customers. A Capex investment of Rs.5Cr is proposed for setting up the manufacturing and solution Infrastructure of complete SD-WAN Solution in ITI.

ITI has signed Memorandum of Understanding (MoU) with its Technology Partners for Implementation of 5G Private Network Solutions in ITI Bangalore Plant. ITI is in the process of implementation of 5G Test Lab in ITI R&D Department, Bangalore, where 5G core and edge products can be integrated with 5G radio for compatibility testing. This will enhance 5G system integration skills for ITI in private 5G deployments and also showcase the Private 5G lab to new customers. Similar use cases and test setups may also be deployed for Govt. Institutions as new business opportunities. ITI in support with its Partner would jointly explore these opportunities. The 5G lab setup would be utilized for the demonstration of use cases like IOT, Drones, Video Analytics, AR/VR, Robotics configuration, and operations based on 5G technology. A Capex investment of Rs.5Cr is proposed for setting up the 5G Test Lab Infrastructure at ITI.

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 R&D unit has developed Single Phase Smart Energy Meter with 3G/4G/ NB-IoT communication modules with Anti-tamper and fraud detection. Prototype development completed & testing is in progress for ITI Smart Energy Meter. ITI is also in the process of engaging more technology partners for addressing the huge market demand.

ITI developed Multipost (S3-EVM) as per the specifications finalized by SEC/ TEC and approved by standing committee of State Election Commissioners (SECs). This Multipost EVMs can be used for conducting the local body elections at Gram Panchayat, Municipal corporations or at any institutions for conducting elections fairly. ITI has been authorized by SECs to supply EVMs for State Election Commission's requirement depending upon the particular state requirement. Demonstration of Multi Post EVM completed for 13 State Election Commissions and demo to remaining State Election Commissions is in progress. Quotation submitted to State Election Commission, Odisha & West Bengal. This is of national importance project which can also be considered for One Nation One Election agenda which is under discussion.

As a Part of Prime Minister's Atma Nirbhar Scheme, ITI has developed DMR in the VHF & UHF bands. These radios have been developed along with base station and Repeater stations as addacement of Motorola/Kenwood radio sets which are currently being imported. These digital radios will have widespread usage with the Armed Forces, CAPFs, Railways and various other Government agencies. The radio sets will also have in built SAG approved Grade 4 necessary for use by the Armed Forces. ITI has completed the demonstration of VHF DMR Hand Held Radio to Indian Railways and upgradation is in progress for observations raised by Customer.

The government's has very ambitious plan for the indigenous solar PV manufacturing's ecosystem. 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 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.

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. 80 Cr in year 2024-25.

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 has upgraded the manufacturing infrastructure for mass manufacturing of 4G and future technology products. Currently ITI is manufacturing RRU (Remote Radio Unit), BBU (Base Band Unit) and ODC (Outdoor Cabinet) to supply against the BSNL RQ Order.

Also ITI has entered into Transfer of Technology with CDOT for manufacturing of 4G LTE RAN to be deployed for BSNL network. ITI has received Purchase order for Technological trials of indigenous 4G and 5G RAN from BSNL .PoC is expected to be completed by July 2024.ITI is also conducting the PoC in Railway, Secunderabad for Band 28 4G RAN and PoC is under progress. ITI is also exploring export opportunities of 4G RAN.

ITI has entered into an 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.

Research & Development (R&D) located in Bangalore plant is designing & developing Communication Equipment to support manufacturing and keep abreast of 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 and also in development of Network solutions & other diversified products like EVM, DMR, SEM etc. The necessary infrastructure to aid design & development is available in the form of Test Instruments, Software design tools, CAD design tools, Reliability lab, EMI/EMC test lab and Telecom testing lab.

ITI's Smaash branded Mini PCs have strengthened their 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. In addition to Mini PCs, the Palakkad Plant 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.

ITI has ventured into the field of manufacturing and marketing of Laptop and have hosted two models namely ITIB14LI5 / ITIB15LI5 in the GEM portal. Both these models are duly certified by BIS, ROHS, CE, BEE and FCC. ITI Limited, Palakkad unit has received Purchase Orders from Kerala Infrastructure and Technology for Education (KITE), Kerala State Electronics Development Corporation (KSEDC) and others for supply of more than 9500 Nos of ITI Made Laptop.

ITI Bangalore unit has expanded Data Center with 1000 rack more capacity. ITI Data Centre is MeitY empanelled cloud service provider & audited by Standardisation Testing and Quality Certification (STQC) for services including Government Community Cloud-(GCC) (Caged services), public cloud & private cloud. The Data Centre facility is 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. ITI Data center is CMMi level 3 certified, ISO certified under various categories viz. ISO 20000-1:2011, ISO 27001:2013, ISO 27017: 2015 & ISO 27018:2019. 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.

As per the guidelines issued by DoT for Mandatory Testing and Certification of Telecom Equipment (MTCTE), all telecom equipment must undergo mandatory testing and certification prior to sale, import of use in India. NABL Accreditation was awarded to ITIs EMC Lab first time on 27.08.2021 valid till 26.08.23. EMC Lab is upgraded for testing of MIL systems according to MIL 461 E/F/G standards which is expected to bring more business in this FY 2023-24.

Designation of ITI EMI/EMC Lab for CAB (Conformity Assessment Body) status obtained from TEC Delhi on 17-12-2021 valid till 16.12.2024.

ITI has always been the front runner in the nation building and implementation of Government of India policies. With a vision to contribute for Start-up India mission of Govt. of India, ITI is in the process of establishing 1000 seater Start-up hub in phased manner at ITI Bangalore plant for encouraging startups in the country. ITI vision for Start-up hub is to help Start-ups convert their Innovations to Pilot Products quickly through Rapid Proto-typing facilities under one roof. Our objective is to Manufacture the Successful products in-house and market them. 168 seater start-up hub along with Amenities like dedicated corporate hub meeting room, demo room, highly secure Wi-Fi connectivity is functional.

During the year, your Company has contributed Rs.140.26 Crore to the Exchequer towards duties and taxes.

The Company did not accept any deposits during the year 2023-24. Deposits aggregating to Rs.0.23 crores had matured for payment, but were not claimed on due dates

Details of all credit ratings obtained by the entity along with any revisions thereto during the relevant financial year, for all debt instruments: such entity or any fixed deposit programme or any scheme or proposal: the listed entity involving mobilization: funds, whether in India or abroad:

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.

ISL executed a Joint Development Agreement to develop its own immovable property as a Software Technology Park. The Master plan of this project "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 this project. The project will be started shortly on obtaining the plan sanction. Further, ISL has developed the state-of-the-art payment aggregator software "SatPAY" with AI driven customer support and AI based features like fraud deduction modules … etc, which will facilitate the online payments for large enterprises. ISL is on the process of obtaining the require licenses from the Government authorities. This will be offered as "SaaS" model to various Government and private companies for acquiring payments in their online systems.

All these projects will create employment opportunities for about1000 people and shall build the infrastructure for 25,000 Software professionals. During the financial year 2023-24, ISL had achieved total income of Rs 2.02 crore and profit for the year is Rs 20.03 lakhs. The net worth of ISL is expected to grow more than Rs. 1,500 crores in a span of 5 years.

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.

ITI Limited is always committed to Quality and we understand that Quality encompasses all functions. 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 9001, 10002, TL 9000 and 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 ongoing 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. NABL Accreditation in compliance with IS/IEC 17025:2017 for Smart Energy Meter LAB ID C-1509 Certificate No.CC-3210 desktop surveillance audit conducted on 18/03/2024 ,validity extended up to 09/03/2025. BIS certification for Smart Energy meter in compliance with IS16444:2015 PART1 License No CM/L-6400092212 Renewed up to 1/12/2024.

ITI BGP certified for ISO based Quality Management Systems i.e ISO 9001and ISO 14001 Environment Management System.

Quality Management System QMS 9001-2015 Re-certification audit was conducted on 9th, 10th & 11th November 2023 at BGP. The Audit was successfully completed and scope revised. Revised scope as follows. Scope: "Design, Development and/or manufacture, supply installation, Commissioning and servicing of Transmission Eqpts, Switching Products, Access Products, Computer maintenance, Computer networking.

Design, Development and/or manufacture & supply of terminal equipment, PCB's, PLB HDPE DUCT and Manufacture & supply of Surface mount device assemblies".

Environment Management System 14001:2015 2nd surveillance audit was conducted on 26th & 27th Dec 2023 at BGP. The Audit was successfully completed.

• 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

• Electronic Telephone Instrument with CLIP and Two way speaker feature(Type-A)

• Smart Energy Meter

• Crystalline Silicon Photovoltaic (PV) Modules

• Smaash PC

• Laptops

IEC (International Electro-Technical Commission) certificate for "Solar PV Module".

TEC (Telecommunication Engineering Centre) 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.

• EMI/EMC Lab at Bangalore Plant

• Smart Energy Meter Calibration Laboratory at Palakkad Plant Accreditation of VSSC (Vikram Sarabai Space Centre Trivandrum) for Component Screening, Test & Evaluation Assembly & Testing of flight Packages.

The Company recognizes the importance and contribution of its Human Resource in providing the competitive advantages. 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 focussed on developing team spirits, employee's empowerment and their involvement in various activities. All HR efforts are in alignment with the business priorities and with an objective of smooth transition to latest Technology.

• EmployeeStrengthattheendofFY23–24i.e.,31st March2024was1676, out of which 369 employees were female.

• As on 31.03.2024, there were 283 Employees belonging to SC Category , 45 Employees belonging to ST Category and 362 Employees belonging to OBC Category.

• 8 Employees on Tenure / Contract basis, 9 Consultants were recruited during FY 23 – 24.

• There were 16 Employees belonging to PwBD categories and 15 employees belonging to Ex Servicemen category, on the rolls of the Company at the end of FY 23-24.

ITI has glorious tradition of building and maintaining conducive employee – employer relationship environment. The Industrial relation scenario in the Company was cordial throughout the year. Employees Union and Officer Association extended their co-operation and support in ensuring smooth work flow and helped to meet the Company's Objectives.

As per the requirement of Sexual Harassment of Women at workplace (Prevention, Prohibition and Redressal) Act 2013, and Rules made there under, Company has constituted Internal Complaints Committees (ICC) to redress complaints received regarding Sexual Harassment at all Units. All Employees (Regular, Contract, 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 Act.

ITI Limited recognizes the development of employees by enhancing their skills and competencies to prepare them for future challenges and effectively address them.

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 create new talents, enhancing the 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 challenge for the organization right now is a shortage of skilled people caused by the attrition of trained and experienced workers. The HR Department meticulously designs training and development programmes, leading to improvements/overcoming 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) 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), National Institute of Defense Estates Management (NIDEM), National Telecommunications Institute for Policy Research, Innovation & Training (NTIPRIT). Department of Telecommunications (DoT), Public Enterprises Selection Board (PESB), National Institute of Communication Finance (NICF), Central Vigilance Commission (CVC), Centre for Development of Telematics (C-DOT). 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 as 4G, ERP, Cyber Hygiene & Security, Capacity Building, Self-Management, Motivation and Leadership Development, Reservation Rules and Recruitment Policy, Employee Wellness/Awareness programmes, Government e-Marketplace (GeM), Disciplinary Proceedings etc.

In order to develop and improve their abilities, knowledge, attitude, and exposure to new technology, 166 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 programs help people cultivate their capacity for managing change, their innovative methods, their ability to think critically, and their positive outlook on creating a high-performance workplace culture. In a nutshell, in respect of Employee Development - training performance during the FY 2023-24 is as follows:

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 DoPT. Total 1745 (Unique 267) officials have completed two or more trainings during the FY 2023-24.

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 programs for giving insight on 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 program can help employees enhance their development of these skills. Training is to re-educate and re-train staff members when new technology, methods, or systems are introduced to ensure they meet the unique requirements of their specific roles. Additionally, staff development initiatives can assist employees in developing 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/ individual. 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 such as increased employment opportunities, enhanced career development prospects, personal growth, and greater knowledge and understanding of the local industry.

As a part of ‘Skill India' Flagship program, ITI started imparting Skill Development and Capacity Building trainings at Six training centers of ITI. All the centers are registered under PMKVY and have associate membership with NSDC for different Job roles. The Company not only develops the skill sets of its own employees by imparting training through its HR-Employee Development Centers located at Units (i.e., Bangalore Plant, Palakkad Plant, Rae Bareli Plant, Mankapur Plant, Naini Plant and Srinagar Plant) but also train and educate the young minds in vocational trades through internship/ project training etc. The Company is actively involved in imparting the Skill Development training in various modules.370 students have completed Skill Development training on different modules under SURYA scheme of Haryana Skill Development Mission (HSDM) Project.

In addition to the above, ITI is also engaging and imparting training to Graduate Engineers, Diploma (Technicians) and ITI Trade Apprentices in various trades under the Apprentices' Act / National Apprentices Promotion Scheme (NAPS). In addition, 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 Visit etc.

The number of participants trained/imparted Capacity building/Skill Development training during the FY 2023-24:

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 corporation office as well as in all subordinate Units/MSP is being periodically reviewed by the 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 OL Rules 10(2) & (4), 1976 after more than eighty percent (80%) of the staff working knowledge of Hindi in these Units/MSP.

ITI Limited, Corporate Office is regulary sending the Quarterly Progressive Report to the Ministry of Communication, Department of Telecommunication, New Delhi as well as Dy. Director (Implementation), Regional Implementation Office, Bengaluru. We have also sent Half Yearly Hindi Progress report to Secretary, Town Official Language Implementation Committee (Undertaking), 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 (Implementaion), Regional Implementation Office, Bangalore. On 13.07.2023 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, Registered & Corporate Office, Bengaluru Official Language Department in connection with Official Language Policy Implementation. During the second half-yearly meeting held on 16.08.2023 at HAL, Management Academy, Bengaluru, under the aegis of Town Official Language Implementation Committee (Undertaking), Bengaluru, ITI Limited, Registered and Corporate Office was awarded a Commendation Certificate for the year 2022-23 towards the progressive use and implementation of Official Language Hindi.

On 08.12.2023 Shri. Anirban Kumar Biswas, Deputy Director (Implementation), Regional Implementation Office (South), Bangalore, Ministry of Home Affairs, Government of India, has inspected Official language department of ITI limited, Registered & Corporate office in connection to the 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 2023-2024 in all the Units and MSP offices and various events were organized for employees during this fortnight. Bilingual (i.e English and Hindi) website of the company is being regularly updated.

The vigilance department of ITI Limited focus on preventive vigilance, punitive vigilance and surveillance to identify deficiencies in the system if any and advise the management on streamlining the systems to prevent recurrence. The complaints received through ITI Management, post, email, Online portal, CVC and DoT are being investigated and brought to a logical conclusion. Vigilance department observed Vigilance Awareness Week from 30th October 2023 to 5th November 2023 in all manufacturing units, MSPs & Area offices, ROs, NS Unit, business establishments and Corporate office. An intensive awareness campaign was taken up regarding PIDPI complaints through various means i.e. Banners, Posters etc. across all ITI establishments. As per directives of CVC, a capacity building programme was undertaken for 11 officials of ITI in prestigious institutes of India on various topics i.e Procurement, Ethics & Governance, Recruitment, Promotions & Transfer, Cyber Hygiene & Security and IO/PO training for trainers under training for trainers programme.

Further, trainers gave training to more than 200 attendees of ITI on these important topics in Bengaluru complex, ITI's Delhi office and Raebareli Unit. During observance of Vigilance Awareness Week – 2023, Pledge taking ceremony, conducting Essay/ Poem/ Quiz/ Slogan Competitions and Valedictory Function in Bangalore Complex on the Concluding Day of the Vigilance Observance Week were organised. Outreach activities such as Pledge taking, Essay writing, Poster making competition and Walkathon were also held in ITI Vidya Mandir & ITI Central School, Doorvaninagar, Bengaluru and Uccha Prathmik Vidyalaya, Chaka Block, Naini.

1) System Improvements

The details of system improvements effected based on preventive vigilance, investigations of complaints and surveillance 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 updated utilization status of the same. Created awareness on increasing the revenue through leasing at market rates and clearing encroachments in various plants.

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.

d) Security of factories

To strengthen security system in the factories of ITI Limited at various places, a detailed review was done and details of deficiencies and guidelines for rectifying the same were issued to management.

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.

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 significant improvements were achieved on the same.

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 consistently and deficiencies observed were highlighted for compliance.

2) Details of vigilance Complaints monitoring

The complaints received are being reviewed by vigilance department and whichever complaint requires investigation, the same are taken up duly following CVC guidelines. The details of vigilance complaints received and processed at ITI Limited during the year is as below,

There exists a mechanism in ITI Limited to process all requests received by Corporate Office/Units under the Right to Information Act, 2005. All Units and Regional Offices of ITI Limited have designated Public Information Officer (PIOs) and at corporate office, we have Assistant Public Information Officer (APIO), Central Public Information Officer (CPIO) and First Appellate Authority (FAA) to address the mechanism of RTI application, other transparency related activities and first appeal, if any. Quarterly online RTI returns are uploaded on Central Information Commission (CIC) portal and also same are published on our Company website. All cases referred to CIC by applicants as second appeals have been successfully addressed and complied in totality to CIC decisions. ITI has been processing and replying the RTI applications with complete transparency and accountability in accordance with RTI Act, 2005. During the FY Year 2023-24, 459 applications under RTI have been received. Information was provided for 477 RTI applications including 20 RTI applications carried forward from previous years. 30 applications under RTI were transferred by other PA. 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 477 replies, reply/information was provided online for 76 cases. Quarterly online RTI returns were uploaded on the CIC portal and also same information were published on the Company website. All cases referred to CIC by the applicants as Second Appeals have been successfully addressed and complied in totality to CIC decisions.

• STATUTORY AUDIT

M/s. B K Ramadhyani & Co LLP, Chartered Accountants, Bengaluru were appointed by Comptroller and Auditor General of India (C & AG) as Statutory Auditors for 2023-24 for Bangalore Plant, NS Unit, Corporate Office, 8 Regional Offices and Consolidation of accounts. The Board of Directors has fixed remuneration of Rs.700000 + GST for standalone, Rs.100000 + GST for consolidation and Rs.600000 + GST for 8 ROs. The fee fixed for certification for Quarterly financial results is Rs.100000 +GST for standalone and consolidation. In addition, travelling and out of pocket expenses incurred are also reimbursed at actuals. The total amount paid to the statutory auditors for other services rendered by them to the Company during 2023-24 was Rs.0.25 lakhs for certification fee.

• AUDITORS' REPORT

Auditors' Report on the annual accounts for the financial year 2023-24 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 2023-24, there has not been any fraud 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 2023-24.

The fee for Branch auditor for Rae Bareli is fixed at Rs.100000+ GST, for Naini and Palakkad at Rs.80000+ GST each, Mankapur at Rs.70000+ GST and for Srinagar Rs.20000+ GST .

In addition to the above, certification fee for Branch auditors for quarterly financial results are as follows:

• COST AUDITORS

M/s. GNV & Associates, Bengaluru was appointed as lead Cost Auditors for the year 2023-24 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. The appointment of cost auditor was made by Board of Directors and the remuneration of Rs.316000 inclusive of GST as applicable was ratified by the shareholders in the Annual General Meeting held on 28.09.2023. The cost audit report for the year 2022-23 was filed with Ministry of Corporate Affairs.

The Company maintains its cost records as specified by the Central Government under sub-section (1) of section 148 of the Companies Act. 2013 read with Rules made thereunder.

• 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 2023-24. 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 those observations mentioned in Secretarial Audit Report, which is appended as Annexure-2. The reply of management to observations of Secretarial Auditor is attached as addendum to Directors report.

ITI Limited's internal controls are commensurate with its size and the nature of its operations.

These have been designed to provide reasonable assurance with regard to recording and providing reliable financial and operational information, complying with applicable statutes, safeguarding assets from unauthorized use, executing transactions with proper authorization and ensuring compliance with corporate policies. ITI Limited has a well-defined delegation of power with authority limits commensurate with the responsibilities that commits organizational resources. The Audit Committee also periodically interacts with the internal and statutory auditors including Branch auditors to assess the adequacy of internal control systems.

It has continued its efforts to align all its processes and controls with best practices. ITI Limited management assessed the effectiveness of the company's internal control over financial reporting under Section 143 of the Companies Act 2013 as of March 31, 2024. except of the observations referred in Annexure ‘B'.

ITI is committed to the Communities around its business and far beyond through its CSR initiatives. During the financial year 2023-24, 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 2.00 lakhs towards CSR activities for noble cause as the Armed Forces Flag Day Fund (AFFDF) was instituted for the welfare of the veterans, widows and their dependents. Annual Report on CSR activities including the composition of CSR Committee is enclosed as Annexure-III 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.

ITI Limited being a Government Company, 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 07th August 2024, 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).

During FY 2023-24, 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 2023 in which all the Independent Directors were present.

The following are changes in Government Directors:

1) Lt Gen M Unnikrishnan Nair ceased to be the Government Director of the company with effect from 15th September, 2023.

2) Sri R Shakya ceased to be Government Director with effect from 09th January, 2024.

3) Lt Gen Kanwar Vinod Kumar was appointed as director with effect from 20th October, 2023.

4) Sri Mukesh Mangal was appointed as the Government Director with effect from 10th January, 2024.

The following are the changes in Functional Directors :

1) Smt S Jeyanthi was appointed as Director Production with effect from 19th May, 2023.

2) Smt R Vasanthi, General Manager (Operation) has relinquished the additional charge of the post of Director Production w.e.f. 19th May 2023.

3) Sri Rakesh Chandra Tiwari ceased to be Director (Marketing) with effect from 30th November, 2023.

4) Additional Charge of Director Marketing was given to Sri Rajesh Rai, Chairman and Managing Director, for a period of 3 months with effect from 01st December, 2023 upto 29th February, 2024 or till appointment of regular incumbent or until further orders are issed, whichever is earliest.

5) Sri Ramana Babu C V was appointed as Director Marketing with effect from 25th January, 2024. Accordingly, Sri Rajesh Rai, who was holding the additional charge of Director Marketing, relinquished the same position with effect from 25th January, 2024.

6) 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 Rajeev Srivastava, Director Finance retires by rotation at the forthcoming Annual General Meeting and being eligible offers himself for re-appointment.

During the financial year 2023-24, apart from functional directors, Chief Financial Officer and Company Secretary continues to hold the post of Key Managerial Personnel of the Company. Smt Shalini Ghatak, Company Secretary and Key Managerial Personnel of the Company resigned from the services of the Company w.e.f. 17th June 2024.

During the year under review, six Meetings of the Board of Directors were held. The details of meetings attended by each director are provided in the Corporate Governance Report.

As on 31st March 2023, the Audit Committee comprised 04 Members out of which 03 were Independent Directors and 01 was a Functional Director. During the year, 04 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.

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.

The Enterprise Risk Management (ERM) framework implemented as part of Governance, Risk Management and Compliance (GRC) in the Company is based on global best practices in Risk Management as covered by ISO 31000:2018 and IEC 31010:2019 and has enabled the Company to fully integrate the Risk Management into its normal business operations. The Company's ERM policy framework is a structured process that involves:

• Identifying all external and internal risk-factors.

• Assessing the impact of these risks on the organization's business and financial targets.

• Prioritizing the identified risk-factors.

• Exploring various alternatives for treating these risks.

• Implementing controls and monitoring mechanisms for managing the risks.

• ERM is an ongoing and dynamic process that requires iteration and adaptation to changing circumstances. The Company's ERM Manual is a well-structured framework having four layers of governance team's i.e.

• Level-1: URMC (Unit Level Risk Management Committee).

• Level-2: ERMSC (ERM Steering Committee).

• Level-3: ERMGC (Enterprise Risk Management Governing Committee) or RMC (Risk Management Committee).

• Level-4: Risk Management Committee at Board Level.

These Committees are responsible to monitor the policy implementation across all the Units by following approved ERM Process, ERM Governance Structure, Roles and Responsibilities of the relevant stakeholders, formation of Risk Registers, provide their continuous contribution to operation of ERM in all the units of Company.

The establishment and maintenance of the ERM framework is facilitating effective decision making process at different levels of the Company. The Risk Register maintained by the Company includes standalone risks identified for the Corporate as well as any significant risks from the Units that merit attention of the Corporate, which will be regularly be presented and reviewed by the Task Force Committee.

All the Units submit and update ERM Risk Register to the ERM Steering Committee (ERMSC). As part of the policy operation ERMSC have conducted monthly risk management review meetings on 25th April 2023, 20th October 2023, 7th November 2023, 18th December 2023, 8th January 2024, 9th February 2024 and 12th March 2024 with all the Units (URMSC). In the Risk Management Committee Meeting held on 26th July 2023, 22nd January 2024 and the Board Meeting held on 11th August 2023, 13th February 2024, the high priority risks and mitigation plans proposed were reviewed.

As framed in the ERM Manual, Risk Management activities will be carried out on an ongoing basis as part of the routine business operations.

Regulations 2015 require formulating a "Whistle Blower Policy for providing necessary safeguards for protection of employees from victimization. Further SEBI (Prohibition of Insider Trading) regulations, 2015 also requires the Company to have Whistle Blower Policy and make the employees aware of such policy to enable them to report instances of leak of Unpublished Price Sensitive information. Objectives of Vigil Mechanism / Whistle Blower Policy:

1) The Vigil Mechanism / Whistle Blower Policy aims to provide a channel to report genuine concerns about unethical behavior, actual or suspected fraud or violation of the Codes of Conduct or instances of leak of Unpublished price sensitive information or policies or regulatory requirements.

2) To provide adequate safeguards against victimization of Directors and employees to avail the mechanism.

3) To initiate inquiry in case of leak of UPSI or suspected leak of UPSI and inform the same to the competent authority promptly. Covers disclosure of any unethical and improper or malpractices and events which have taken place / suspected to take place. The Whistle Blower role is to report Company with reliable information. A Whistle Blower policy is not required or expected to act as an investigator or finder of the facts, nor would the Whistle Blower have a right to participate in any investigative activities unless requested by the Investigator.

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.

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.

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.

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.

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.

All related party transactions entered during the year 2023-24 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.

The are no material changes affecting the financial position of the Company subsequent to the close of the FY 2023-24 till the date of this report.

REGULATORY OR COURTS ORDER : NIL

The Board of Directors confirm that a. In the preparation of the annual accounts for the financial year ended 31st March 2024, 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 2024 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.

There are no transactions of Loans, Guarantees and Investments covered under the provisions of Section 186 of the Companies Act, 2013.

M/s Recap Ventures Pvt. Ltd. has filed an application U/Sec 9 of IBC in NCLT, Bengaluru vide Case No.CP/98/BB/2023 to initiate Corporate Insolvency Resolution Process against ITI Ltd. This case is coming up for hearing on 09.09.2024.

As reported in Annual Report 2022-23 regarding filing of cases by M/s Eagle Software India Private Limited and M/s Fujiyama for Corporate Insolvency Resolution process, both the cases were dismissed as withdrawn on 06.07.2023 and 30.04.2024 respectively.

There are no instances of one-time settlement during the financial year 2023-24.

The expenditure on entertainment was Rs.-14.55 lakhs (PY Rs. 1.56 lakhs). Expenditure on official travel abroad by the officials of the Company was NIL during the year.

Citizens are implied as any Stakeholder of the ITI Limited (ITI) extending from Employees, Customers, Vendors, Investors, Collaborators / JV Partners, Competitors, Media and Govt to Society / Community at large. The Citizens charter does not itself create new legal rights, but make the citizens aware of their existing rights. ITI Citizen's Charter outlines its scope and contains general information about the Company, Citizen's obligations towards Company and the Management's commitment towards the citizens. It also contains Grievance redressal mechanism and Citizen's 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 stakeholders. Objectives of Citizen's Charter are as follows:-

1) To demonstrate Transparency and openness of its business operations.

2) To improve the quality of public services by ensuring Citizen centric focus across all its processes.

3) To let people know the mandate of the Organization, how one can get in touch with its officials, what to expect by way of services and how to seek a remedy in case of specific complaints / problems.

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.

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. In line with this, the company made significant strides in supporting MSE vendors. During the financial year 2022-23, the company procured worth Rs 69.59 Crore from MSE vendors, which constituted 26.3% of its total procurement value.

Moving into the financial year 2023-24, the company continued its commitment to MSE procurement, achieving 4% of its total annual procurement through these vendors, resulting in a total procurement value of Rs. 95.06 Crore. This reflects a substantial increase of approximately 36% in procurement value from MSE compared to the previous year. However, there is a noticeable decrease in the procurement percentage, primarily due to the nature of procurement processes involving MoUs. Despite this percentage decline, the overall increase in procurement value underscores the company's ongoing dedication to enhancing its engagement with MSE vendors, contributing to their growth and development.

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 bankers, investors, members, 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.