During the year 2006-07, Company achieved a turnover including other income of Rs. 4106 Million. and profit before tax amounting to Rs. 59 Million. viz-a-viz corresponding figures of previous year of  Rs. 4835 Million. and Rs. 174 Million. During the year, share of project exports have gone up to 51% as compared to  previous year’s 46% and was valued at Rs. 1943 Million. Foreign exchange repatriation to India increased from Rs. 220 Million in 2005-06 to Rs. 280 Million in 2006-07.  Company’s order booking during the year was Rs. 4850 Million. Hitherto, Company’s focus was land line business.  With the drying up of landline business, Company is trying to keep pace with the new technologies.  The change over has been time taking and it has its impact on turnover and margins.

I am pleased to inform you that the diversification process is progressing well and  things have started looking up.  Company has been able to secure good projects in Information Technology and Civil Construction.    TCIL has successfully   executed National Rural Employment Guarantee Scheme (NREGS)  Pilot Project of CAPART  ( Council for Advancement of People’s Action and Rural Technology – an autonomous body under aegis of Ministry of Rural Development  MoRD) facilitating payment to the beneficiaries of the scheme directly into their bank account allowing them to withdraw their money at their convenience using the smart card.   CAPART appreciated  the NREGS Pilot project and has further awarded Village Resource Centre  (VRC) project  in the States of Rajasthan, Orissa and Chhattisgarh.    The project envisages  a VRC connected to a control studio  using wireless Broadband technology wherein videoconferencing session at 512 kbps on Internet Protocol (IP) could be used to effectively deliver live interactive sessions in real time by the central speaker with audience at remote villages.    Company has also been awarded  a project for computerization of Customer Care Centre and Bijli Suvida Kendra and O &M of sub division  of Discoms.  The Project has been awarded by Dakishan Haryana Vidhyut Vitaran Nigam.    Company has also completed National Internet Backbone Phase II Project 3 (NIB II Project).  The project consists of various components such as Messaging and Storage Service platform,  Operation Support System (OSS) and Billing Security System and Enterprise Management System being implemented in BSNL.Company has also been awarded a contract for setting up Virtual University by Chennai University.
 

Company had given a feasibility report for Sudan Electronic City.  Client has now asked the company to expand the report by including 8 more fields which includes Bio- technology, Pharmaceuticals, Industrial Technology, Applied Science, Mining Technology, Aerospace Technology, Energy Technology, Business & Services and submit the updated report for Sudan Technology City .  A MOU has been signed with STC for updation of the report and for implementation of part of first   phase upto USD 25 Mn. Company had completed feasibility study for SMT of Sudan for setting up of ICT Department which includes setting up of Enterprise Wide Network, Lan Upgradation for 4 units, setting up of Data Centre and Enterprise Wide Messaging System, EMS and IP Telephony etc .  SMT has now awarded the contract for its implementation.  The project implementation shall be in 3 phases.  Total project cost is USD 17 Million.   Company shall be undertaking the first phase of the implementation   for USD 4 Million immediately. TCIL has been awarded  the consultancy contracts  for e-Governance  (SWAN Project) by 8 States viz. Andhra Pradesh, Uttranchal, Tripura, Jharkhand,  Meghalaya, UP, Gujarat & Orissa.     These project shall enhance the internal effectiveness as also the service delivery efficiency and information access to general  public.  The network shall facilitate right upto the block or even village level reduction of government expenditures on communication, travel and meetings within the government as also two way information flow between government and the public.  Company secured road construction projects of Rs. 1080 Million in the year 2006-07.  The total  projects under  execution in road construction sector are for over Rs. 6000 Million.  In the first 5 months of 2007-08, Company has further secured road construction projects of over Rs. 1000 Million.  Company had participated in ADB funded projects in Chhattisgarh and is likely to get contracts for over Rs. 600 Mn. Company has also been awarded  projects in Saudi Arabia, Kuwait and  Bahrain during 2007-08.  Pan African Tele Medicine and Tele Education Project :  In July 2007, The Govt. of India has  approved the establishment of Pan African Tele Medicine and Tele Education Project.  TCIL has signed MOU   with 25 countries.  In the first phase of implementation, all the 25 countries shall be covered.  Total project cost of Rs. 5420 Million is being funded by MEA, Govt. of India.  TCIL’s role in the Project is to design the total network solution and do project planning and scheduling, procure the materials and services, coordinate with all concerned  agencies, install / commission the equipment, monitor the project, train the manpower and provide the tele-medicine and tele education service for 5 years.  The project envisages connecting 7 reputed Indian Educational Institutions / Universities and 12  Super Specialty Hospitals with 53 African nations on satellite and fibre optic based network with satellite hub in Senegal.   TCIL will implement   the network  over a period of 18 months and will maintain the network for 5 years thereafter.  The network  would be used primarily for providing tele-education  and tele-medicine services from Indian and VVIP connectivity (  for Video-conferencing and VOIP services ) among the Heads of States in Africa. Construction of Sub Station building at Dakar in Senegal   is nearing completion.  This is the biggest ever single project awarded to TCIL in its history of last 28  years and shall be a very challenging task.

Indian Telephone Network is one of the largest communication network in the world.  It continues to grow at blistering pace.  The Indian Telecom Network with over 200 Mn. connections is the  3rd largest in the world and the 2nd among the emerging economies of  Asia.  It is the fastest growing market in the World.   The significant growth of telecom market has provided opportunities to your Company also.   TCIL is in the process of  negotiating high value contracts with the private operators for setting up of their Networks.  Further company continues to retain its strong competitive advantage in its traditional market in Gulf and Africa and continues to get contracts. Company has 7 Joint Ventures.  While Bharati Hexacom, TCIL Saudi Company and ICSIL has shown profits during the year, UTL, TBL and TTL continue to incur losses.  Total profits of joint venture companies during the year were  Rs. 1303.40 Million with TCIL’s share being Rs.400 Million which has not been accounted for in TCIL’s accounts as in accordance with Accounting Standards, consolidation of accounts is not mandatory  for the Company.As a part of its Corporate Social Responsibility, TCIL participated in Perfect Health Mela, 2006 organised by Healthcare Foundation of India. The event was a big success and TCIL was awarded the prize for “Best Social Participant” at the Mela. I take this opportunity to thank you all for your continued support as shareholders in TCIL’s endeavor to undertake new technology projects and remain progressive organization for catering to the Indian and overseas markets.  I thank  Govt. of India and its various departments and particularly DOT, Ministry of External Affairs for their trust in TCIL’s ability to execute prestigious  high tech projects  in India and abroad.   I also thank CAG of India, Statutory Auditors, Reserve Bank of India , Exim Bank, ECGC and  other  Indian and foreign banks for their support in our  operations.  Before I conclude, I wish to place on record my appreciations for sincere dedication and hardwork of our executives and employees who have co-operated and given full support to maintain a competitive edge of the Company.  Thank you very much.