ARENGLISH2013-14

14th AnnuAl REpoRtFor the Financial Year ended 31.3.2014

bhARAt sAnchAR nigAm limitEd

Annual Report 2013-14

CONTENTS

DETAILS PAGE NO

CMD and the Board of Directors 04 06

Vision and Mission 07 08

Chairman and Managing Directors Message 09 10

Directors Report 11 25

Management Discussion and Analysis Report 26 27

Report on Corporate Governance 28 51

Financial Statements [Balance Sheet, P & L Account, Cash Flow Statement, Notes forming part of the Financial Statements]

52 96

Auditors Report 97 126

Addendum to Directors Report 127 137

Comments of the Comptroller and Auditor General of India on the Accounts 138 140

Replies of the Management to the Comments of the Comptroller and Auditor General of India on the Accounts

141 143

4BOARD OF DIRECTORS

Shri R.K. UpadhyayChairman and Managing

Director[Upto 30.6.2014]

Shri A.N. RaiDirector (Enterprise) & Director (HR) Chairman and Managing Director* [*Wef 01.07.2014]

Shri N.K. GuptaDirector (CFA)

Shri K.C.G.K. PillaiDirector [Finance][Upto 30.11.2013]

Shri Anupam ShrivastavaDirector (CM) &

Director (Fin) [Wef 1.5.2013]

Ms. Rita A. TeaotiaGovernment Director

Shri Shahbaz AliGovernment Director

[Upto 26.08.2014]

Shri Ajai Vikram SinghDirector

Chairman, Remuneration Committee of the Board

Smt. Darshana Momaya Dabral

Government Director[W.e.f. 29.9.2014]

Prof. N. BalakrishnanDirector

Chairman, Audit Committee of the Board


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Company Secretary & Sr. GM (Legal)H.C. Pant

Registered and Corporate Office

Bharat Sanchar Bhawan, H.C.Mathur Lane, Janpath, New Delhi-110 001

Corporate Identity Number (CIN) :

U74899DL2000GOI107739

Statutory Auditors

Walker Chandiok & Co., L-41 Connaught Circus, New Delhi-110 001.

Cost Auditors

M/s Balwinder & Associates, Cost Accountants

Bankers

State Bank of India, Punjab National Bank, ICICI Bank, Indian Bank, HDFC Bank, Canara Bank, Union Bank of India, Corporation Bank, IDBI Bank, Oriental Bank of Commerce,

Indus Ind Bank, Yes Bank

6OUR BUSINESS

Mobile Services

GSM :- 2G, GSM 3G, WiMAX,

CDMA :- Mobile, CDMA Fixed and CDMA Data Card Services

Broadband Services

Landline Broadband

3G Mobile Broadband

GSM Wi-Fi

WiMAX Broadband

Dial up Internet (DIAS)

Fiber Broadband (FTTH)

CDMA Broadband :- EVDO Prepaid, EVDO Postpaid, EVDO Router.

Enterprise Business

Enterprise Voice and Mobility:- EPABX, Voice VPN, ISDN/PRI/BRI, Centrex, 2G/3G Mobile, Blackberry services

Internet Data Centre Services:- IDC Overview, Managed Colocation services, Managed/Hosting Services, Managed IT Services, Cloud Services (PCaas)

Enterprise Data Services:- Leased Circuit(DLC), MPLS VPN, Internet Leased Line, VSAT, VPN Services (Over BB, CDMA/3G)

Enterprise Broadband:- Wi-Max, Wi-Fi, EVDO, DSL Broadband/FTTH Broadband

Managed Services:- Managed Network Services(MNS), Managed Global Audio Conferencing, Managed SaaS(Mail), Internet Data Centre

Other Enterprise Services:- Web Colocation, Fleet Tracking, Video Conferencing(VC), Video Surveillance, Web Hosting, USOF Project and host of other innovative Enterprise Business Solution Services

Landline Services

Telephone Lines, FLPP B-fone, Phone plus services

Intelligent Network Services:- Universal ITC, UAN service, Toll free numbers/services, VPN service, Televoting services

BSNL PCO:- FLPP-PCO

PRI/BRI/Dial-up Internet:- Dial up internet, ISDN PRI, ISDN BRI


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VISION AND MISSIONVISION

Be the leading telecom service provider in India with global presence Create a customer focused organization with excellence in customer care, sales and

marketing Leverage technology to provide affordable and innovative telecom services / products

across customer segments

MISSION:

a) Be the leading telecom service provider in India with global presence Generatingvalueforallstakeholdersemployees,shareholders,vendors&business

associates Maximizingreturnonexistingassetswithsustainedfocusonprofitability Becomingthemosttrusted,preferredandadmiredtelecombrand ToexploreInternationalmarketsforGlobalpresence

b) Creating a customer focused organization with excellence in sales, marketing and customer care

Developingamarketingandsalesculturethatisresponsivetocustomerneeds Excellence in customer service - friendly, reliable, time bound, convenient and

courteousservice

c) Leveraging technology to provide affordable and innovative products/services across customer segments

Offeringdifferentiatedproducts/servicestailoredtodifferentservicesegments Providingreliabletelecomservicesthatarevalueformoney

d) Providing a conducive work environment with strong focus on performance Attractingtalentandkeepingthemmotivated Enhancingemployeesskillsandutilizingthemeffectively Encouragingandrewardingindividualandteam/groupperformance

e) Establishing efficient business processes enabled by IT Changingpolicies andprocesses to enable transparent, quick andefficientdecision

making BuildingeffectiveITsystemsandtools

OBJECTIVES

Tobe theLeadingTelecomServicesproviderbyachievinghigher rateofgrowthsoas tobecome a profitable enterprise.

Toprovidequalityandreliablefixedtelecomservicetoourcustomerandtherebyincreasecustomers confidence

Toprovidecustomerfriendlymobiletelephoneservice,withfocusonValueaddedserviceanddata services, ofhighquality andplay a leading role asGSMoperator in its areaofoperation.

8 Strategyfor:

I. Rightsizing the manpower II. Providing greater customer satisfaction Contributetowards:

I. Broadband customers base in India as envisaged in draft National Telecom Policy 2011.

II. Providing broadband connectivity to 2.5 lakhs Village Panchayats as per Government policy

To leverage the existing infrastructure of BSNL for facilitating implementation of othergovernment programmes and initiatives particularly in the rural areas.

TolookfortheopportunityofpossibleexpansionofBSNLfootprintgloballybyexploringinternational telecom in developing markets such as Africa.

Shri Ravi Shankar Prasad, Honble Minister for Communications and IT addressing the delegates in the Heads of Circle Conference 22nd August 2014.


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Dear Shareholders,

On behalf of the Board of Directors of your Company, it is my privilege to extend you all a very warm welcome at the 14thAnnual General Meeting of the Company.

Business Outlook

The high inflationary pressures & structural bottlenecks impacted the growth story as the economy clocked around 5% GDP Growth in the last two fiscal years. However, presently, overall sentiment is that economy is on the roadmap of smart recovery.

In the telecom space, India, the second largest telecommunication market appears to be at the crossroads as the telecom sector is witnessing slow but sure progression from voice to data usage. Intense competition in smart-phone suppliers market, generation of targeted applications & content has resulted in 3G services gaining traction for a plethora of services viz. broadband, mobile Internet access, video calls, voice messaging and mobile TV etc.

At the industry level, it is evident that for sustained data-based services driven growth, transformation of existing business and operational model has become imperative.

Going forward, the new telecom policy appears to have recognized that Telecommunication is a key driver of economic and social development in an increasingly knowledge intensive global scenario. Carrying this ahead, policy initiatives of new government - Digital India and 100 Smart Cities projects have all the attributes of telecom & IT and it is apparent that BSNL, with its footprint all across India, will be central to the scheme of things in realization of this nation building activity. This shall entail mobilization of resources and execution at hitherto unprecedented level.

Your company, with its robust Pan India network is well positioned and fully geared to anticipate the challenges, embrace the technological changes and tap the ensuing opportunities in times to come.

We are hopeful to execute successfully and to the expectation and satisfaction of the Government, the projects of national importance viz., LWE, NFS and NOFN etc., which were entrusted to your Company on nomination basis by the Government.

Performance Highlights during Financial Year 2013-14

During the year under review, the Company incurred a loss of Rs. 7,019.76 Crore [Loss in Previous Year Rs. 7,884.44 Crore]. While the income from services is Rs. 26,153.26 Crore [Previous Year Rs. 25,654.81 Crore], other income was Rs. 1,843.09 Crore [Previous Year Rs. 1,473.08 Crore]

There was an increase of 1.94% in income from services in comparison to previous year, the other income increased by 25.12%. There was an increase of 3.20% in the total income in comparison with previous year.

The Employee benefit expenses and Office & Administration expense has shown an increase of 12.20 % and 5.82 % respectively.

Your company in the face of stiff competition has been able to rein in the downslide to some extent.

Further, your company kept its sights firmly on the futureandcontinued tomake requisiteinvestments for technological up gradation and network expansion. Efforts in these directions will facilitate improvement in service offerings, delivery standards and consequently largervalue capture in the years ahead.

CHAIRMAN AND MANAGING DIRECTORS MESSAGE

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Corporate Social Responsibility (CSR)

Right from its inception, your Company has been at the forefront of nation building activities. National telecom policy 2012 has also recognized that BSNL has played a pre-eminent role in provision of telecom services in the country, particularly in rural, remote, backward and hilly areas. We remain committed in expanding telecom footprint to every nook and corner of the country and touch lives of all citizens and be a key enabler in facilitating inclusive growth and transforming India.

While delivering value to our subscribers, we are equally aware of our responsibilities wherebywe have always attempted to adopt a holistic approach in our endeavours encompassing economic, social and environmental aspects. Such efforts of your company have been recognized and your Company was awarded 1st and 2nd National Level Energy Conservation award by the Ministry of Power. Certificate of Merit was also awarded to your Company by Bureau of Energy Efficiency, Ministry of Power.

Importantly, in troubled times, whether it be Uttarakhand floods, Phailin Cyclone in coastal Odisha & Andhra Pradesh and more recently, when rains & floods played havoc in Jammu & Kashmir, Your Company has always been the first telecom network to have worked on war footing for restoration of telecom network and establishing connectivity.

When the natural calamity struck the Uttarakhand, our employees contributed a days salary to the PMs National Relief Fund. Again, when Jammu & Kashmir was hit by unprecedented floods, our employees rose to the occasion to contribute a days salary to the PMs National Relief Fund.

CSR Committee of the Board has also been constituted as mandated by the Companies Act 2013.

Corporate Governance

Your Company believes in conducting business in a manner that complies with the

Corporate Governance procedures and Code of Conduct. Being the successor of erstwhile central government departments, compliances of Corporate Governance procedures and prescribed codes is inbuilt in the systems and procedures.

People our strength

Your Company has always valued its human resources and their spirit in overcoming challenges as the most important resource. Our Focus has been to strengthen up people practices and processes to attract and retain talent. Commensurate with its expansion plans, your Company has prioritized competence building of its employees through training and development and induction of new talent. Towards this end, various management initiative programmes have been integrated with the Human Resource Development policies of the Company.

Acknowledgements

On behalf of the Board of Directors of your Company, I wish to convey sincere regards and deep gratitude to our valued subscribers. I acknowledge the unstinted support and valuable guidance from various Ministries, particularly from the Department of Telecommunications, other Ministries and Departments, Authorities and Agencies of the Union Government and the State Governments.

I also place on record our appreciation to our vendors and service providers for their their co-operation.

I am grateful to the Board of Directors for their support and guidance. I would like to express my deep gratitude to all our stakeholders for the continued faith reposed in BSNL.

Thank you,

A.N. Rai Chairman and Managing Director

Jai Hind !


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DIRECTORS REPORT

Dear Members,

Your Directors have great pleasure in presenting the 14th Annual Report of your company, alongwith the Audited Statement of Accounts, Auditors Report and Comments and Review of the Comptroller and Auditor General of India, on the Accounts for the financial year ended March 31, 2014.

FINANCIAL PERFORMANCE

Thefinancialperformanceforfiscal2013-14issummarizedasbelow:

S. No

Particulars 2013-14 [Rs. in Lacs]

1 Income from services 1 2,615,3262 Other Income 2 184,3093 Expenditure [Excluding Interest and depreciation] 3 2,868,6794 Profit before interest, depreciation and tax [EBIDTA] 4 = 1+2-3 (69,044)5 Depreciation 5 602,3176 Interest 6 21,9647 Profit/(Loss) before prior period adjustment 7=4-(5+6) (693,325)8 Prior period adjustments 8 (19,094)9 Profit/loss before tax 9=7+8 (712,419)

10 Provision for deferred tax 10 10,443Tax Provision for the year -Tax Provision for the earlier years -Wealth tax Note 1

11 Net Profit/Loss for the year 11=9+10 (701,976)

Note1:WealthtaxexpenditurebookedforthecurrentyearisRs.84lacswhichisincludedintheexpenditure(excluding interest and depreciation) shown at serial no 3.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

During the year 2013-14, the company incurred a loss of Rs. 7,019.76 Crore [Previous year Rs. 7,884.44 Crore]. While the Income from services is Rs. 26,153.26 Crore [Previous year Rs.25,654.81 Crore], other income was Rs. 1,843.09 Crore [Previous year Rs. 1,473.08 Crore].

There was an increase of 1.94 % in Income from services in comparison to previous year, the other income increased by 25.12 %. There was an increase of 3.20 % in the total Income in comparison with the previous year.


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OUTLOOK

During the year under review, your Directors continued to work on the vision of creating a customer focused organization. Your Directors on their part have taken various strategic initiatives to improve companys operating efficiency and revenue earning potentials to spear overall growth and productivity in the organization. Focus is on service, differentiation and operational agility to cater to subscribers on Pan India basis. Initiatives such as capacity expansion, technology upgradation coupled with revenue assurance are likely to enhance revenue and restrain the losses.

DIVIDENDS AND BORROWINGS

In view of the losses suffered by the Company, Your Directors do not recommend any dividend for the year.

Opening balance of borrowings stood at Rs.2,561.1403 Crores as on 1.4.2013. During the year under review, your company borrowed Rs.5,603.6133 crore and repaid an amount of Rs.4,426.2207 Crore. The loan balance as on 31.3.2014 stood at Rs.3,738.5329 crore.

MEMORANDUM OF UNDERSTANDING [MoU] WITH THE DEPARTMENT OF TELECOM

IncompliancewiththeguidelinesforMoUSigningandMonitoringMechanismissuedbytheDepartment of Public Enterprises, Government of India, Your Company has been signing the MoU with the Department of Telecommunications since 2004-05.

PHYSICAL PERFORMANCE

Your Company, despite operating in a very highly competitive and consumer driven market with pressure on earnings was able to restrain the negative trend to some extent.

The status of MoU Targets and Net Achievements in respect of physical performance during the year2013-14isasfollows:-

S. No

Item Unit MoU Target for

13-14

Status as on

31.3.2013

Status as on

31.3.2014

Net achievement

during 2013-14

%age of achievement

against annual target

1 Total Telephone connection

Lakh Conn

80.00 1,216.53 1,131.38 -85.15 -106.44

1(a) Wireline 0.00 204.46 184.88 -19.581(b) WLL 0.00 27.02 22.49 -4.531(c) Mobile 80.00 985.05 924.00 -61.05 -76.31

2 Total switching capacity

Lakh Lines 90

1,248.97 1,275.31 26.34 29.26

2(a) Wireline - 398.58 383.99 -14.592(b) WLL - 85.19 84.54 -0.652(C) Mobile 90 765.20 806.78 41.58 46.20

3 VPT Nos - 577,882 578,267 385


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S. No

Item Unit MoU Target for

13-14

Status as on

31.3.2013

Status as on

31.3.2014

Net achievement

during 2013-14

%age of achievement

against annual target

4(a) Broadband Wireline

Lakh cons

30

99.28 99.65 0.37 1.38

4(b) FTTH Nos 11,445 25,146 13,701 60.424(c) EVDO

connectionNos 101,538 93,671 -7,867 -15.73

4(d) Wimax connection

Nos 85,329 124,963 39,634 17.83

5 Broadband capacity

Lakh Ports

16.1 100.18 100.18 0.00 0.00

6 OF Cable Route Kms

20,000 719,935 734,323 14,388 71.94

SERVICES AND PLANS

MOBILE SEGMENT

With affordable and innovative tariff plans your company offers its Mobile services in almost every nook and corner of the country.

AglimpseofGSMcoverageofyourcompany,ason31.3.2014isasfollows:-

S. No Parameter Total Covered % Coverage1 DistrictHeadquarters(DHQ) 632 632 100.00

2 BlockHeadquarters(BHQ) 6,210 6,110 98.39

3 Villages 5,93,601 3,91,776 66.00

4 National Highway (In Kms) 67,493 59,861 88.69

5 State Highway (In Kms) 1,42,083 98,511 69.33

6 Railway Route (In Kms) 55,414 46,299 83.55

7 Area(Sq.Km) 32,89,212 18,82,837 57.24

8 Population (In lakh) 12,389 7,858 63.43

To augment the capacity, during 2014-15, your company plans to add 10 Million net GSM connections and 12.5 million GSM capacity.

WIMAX & CDMA SERVICES

CDMA WLL Services

During the year under review 3,41,150 WLL connections and 21,845 EVDO connections were provided. Your Company is making all round efforts to improve WLL services by providing value added services like SMS, UMS & high speed packet data, prepaid services. Full mobile service, CRBT & Voice SMS services have been launched on CDMA. MNP on CDMA is also working. On the other hand, provisioning of new services at affordable prices, introduction of various attractive

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tariff plans and improved marketing strategies are being envisaged for improvement in the services. The CDMA WLL connections are being given on demand in most of the areas in all the circles.

At present, the latest Mobile Switching Centre (MSC) based 2,000 IX/EVDO system is being used extensively in the companys network. Your company is optimizing its network continuously for its performance. In order to reduce the interruptions occurring due to media failure, more Ring connectivity of Optical Fiber Cable (OFC) media are being provided to WLL BTSs.

However, your company does not have future expansion plan in CDMA WLL.

WiMAX Services

During the year under review, your company provided 39,634 WiMAX connections. Your company is making all out efforts to popularize WiMAX services by introduction of various attractive tariff plans and improved marketing strategies. Prepaid services on WiMAX have been tested for launching of these services. Procurement of CPEs is planned to provide connections and utilize the available capacity of WiMAX.

However, your company does not have future expansion plan in WiMAX.

FIXED ACCESS SEGMENT

During the year under review, 13,40,281 number of wireline connections were provided, whereas, the net achievement was 19,57,915 against zero MoU Target for the year 2013-14. Your Company is in process of migrating C-DOT TDM technology exchanges covering most of the rural India, with NGN solution being developed by C-DOT. Field trials are already completed. MoU has already been signed between the Company and C-DOT. In first phase 100 locations are being covered and balance sites will be covered in Phase-2.

With the migration to NGN network, your company will be able to offer following new services/value added services to the wire-line customers-

Wide Area IP Centrex - IP Centrex allows small and medium size enterprises to deploy PABX/CUG service without really installing system physically in their premises

Multimedia Video conferencing service will be available across the country

The prepaid solution will be provided with all functionalities to provide voice, video and data pre-paid services including roaming

Fixed Mobile convergence (FMC) by using the NGN-IMS core alongwith the PSTN Access network and already deployed mobile network.

VALUE ADDED SERVICES

Your Company has been providing various Value Added Services through its Mobile Network as well as fixed line Broadband network viz. M-Valet, Movies on Demand, on-line education services etc.

BROADBAND SERVICES

Your Companys broadband services are one among the best in the country. To accelerate further growth of business in this segment, your Company constantly monitors the service and offers innovative tariff plans, new technologies etc.


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Universal Access Number (UAN) with revised tariff positioned for bulk users. New tariff (MoU based) introduced in Universal ITC (UITC) Cards. ISD Tariff for all countries for UITC, FLPP Gen. & FLPP PCO was revised with comprehensive list of countries/codes. Work order has been issued toM/sAlcatel-LucentforAMCofINequipmentsfor5yearsw.e.f.1.4.2014withspecialtermsandconditions for operating fixed line IN services which will further reduce operational expenditure.

AglimpseofBroadbandcoverageofyourcompany,ason31.3.2014isasfollows:-

S. No Parameter Total Covered % Coverage

1 DistrictHeadquarters(DHQ) 632 628 99.37

2 BlockHeadquarters(BHQ) 6,210 6,005 96.70

3 Cities 4,645 4,443 95.65

4 Villages 593,601 169,532 28.56

ENTERPRISE BUSINESS

Special focus is being paid to cater to the business needs of the Enterprise customers of your company segmented in Platinum, Gold and Silver categories. Platinum customers are being served on pan-India basis through single window concept through nine platinum offices located at Ahemedabad, Bangalore Chennai, Hyderabad, Kolkata, Mumbai, NCR I, NCR II Delhi and Pune, covering around 1,033 Platinum Accounts.

Apart from the ISDN-PRI and Bulk broadband connections, these customers are also offered MPLS based leased line, MPLS based managed network service, Point to Point leased line, VPNoBB services, VSAT services and Internet Data Centre Services.

MPLS based Next Generation Transport Project(MNGT)

This has been implemented for expansion of the Core Network alongwith International Gateways to enhance the capacity of carrying Internet traffic of wire line and wireless network. In this project 42 Core Routers and 30 LAN switches were installed and commissioned alongwith redeployment of 30 Nos of existing core routers which are now being used as Edge Routers in the field.

Managed Leased Line Network(MLLN)

Equipmentwaspurchased for expansionof existingMLLNnetworkwhich ismeant toprovideLeased Lines of n*64 upto 2 Mbps to the enterprise customers. In this 1,500 V-MUXs and 40 DXC were installed, enhancing the existing capacity by 21,000 ports/modem.

Leased Circuits

18,996 leased circuits had been commissioned in the year under review.

Procurement of additional cards for upgradation of Edge Routers in the existing MPLS Network was done to augment the port capacity for the customer connectivity and BSNL services which provided additional 10,000 number of E1 ports, 600 number of GE ports and 60 number of 10 GE ports.

Followingprojectshavebeenplannedforthefinancialyear2014-15:-

Replacement of life expired MPLS Network Management System

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To increase the reach of MPLS network 232 No. of MPLS Edge Routers at 186 locations

To facilitate IPv4-IPv6 interoperability at International gateways Carrier Grade Network Address translator is planned to be deployed.

ILD Business Operations and Plans

Your Company is having agreements / ITSAs with AT & T - USA, Jaina - USA, TIS - Italy, Belgacom - Belgium, Tata Teleglobe Canada, BTCL Bangladesh, MCI USA, C & WW UK, Metrofi USA, dU -UAE,MPT-Myanmar,OmanTelecom,EtisalatUAE,OptusAustralia,QTel-Quatar,Sprint- USA , iBasis USA, STC Saudi Arabia, PCCW - HK, IDT HK, SLT Sri Lanka, TM- Malaysia, FT France, Nepal Telecom - Nepal, Bhutan Telecom - Bhutan, UTL - Nepal, for exchange of voice traffic.

Bilateral agreement with Etisalat, DU UAE and Saudi Telecom Corporation (STC) have been signed for exchange of international voice traffic.

There was saving of around Rs.30 crores in Financial Year 2013-14 in comparison to Financial Year 2012-13, for procuring, commissioning and maintenance of international bandwidth for internet on one year lease basis.

Joint Ventures/Strategic Alliances/Business Devlopment programmes etc. including Memorandum of Understanding, Agreements

Your Company has become a consortium member of Europe India Gateway(EIG) Submarine Cable System as a non-landing party. This cable is from Mumbai to London connecting countries Portugal, Gibraltar, Monaco, France, Libya, Egypt, Saudi Arab, Djibouti, Oman and UAE. The end to end connectivity is from Mumbai to London. BSNL has ownership of 7.09% in EIG cable system.

The EIG cable was RFS (Ready for Service) providing EIG end to end connectivity on 4-12-2013. BSNL has started using the EIG cable which is loaded with international internet bandwidth activated in Financial Year 2013-14. Further, your company is also participating in 1st upgradation of existing EIG capacity by 50G at a cost of US $ 1.58 Million.

PROVISION AND OPERATION OF SATELLITE BASED SERVICES USING GATEWAY INSTALLED IN INDIA USING INMARSAT TECHNOLOGY

On 25th August 2014, Your Company has been granted License for provisioning and operation of satellite based services using gateway installed in India, with All India Service Area valid for a period of 20 years, on sui-generis category, using INMARSAT as technology partner.

ADDITIONAL REVENUE STREAMS

Management of your Company has been trying to explore various methods to augment the revenue stream. Monetization of vacant land parcels through development by engaging a developer under PPP mode is one such avenue has been identified.

During the period under review, 739 towers were leased out, which resulted in earning revenue of Rs.98.88 crores.

DEVELOPMENT OF RURAL TELECOM NETWORK

Aglimpseoftheruralcoverageofyourcompanyason31.3.2014isasfollows:-


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S. No Parameter Total villages Covered % Coverage1 Village Public Telephones 5,93,601 5,78,267 97.422 GSM 5,93,601 3,91,776 66.003 CDMA 5,93,601 4,69,389 79.074 Broadband 5,93,601 1,69,522 28.56

COMPUTERISATION AND IT

Implementation of CDR Project

The CDR project implementation was completed in April, 2012. This takes care of customer care, billing and post billing operations for landline and broadband customers across the country. This has resulted in advantages like faster implementation of telecom tariff across the country, corporate monitoring of billing, revenue and customer care including faults. From the customers point of view, this gives an advantage of uniform customer experience across SSAs, Internet based portal payments, combined bill of landline and broadband services, uniform standard bill format across the country, customer friendly tariff packages like fair usage policy etc.

Implementation of ERP

On successful completion of the proof of concept phase of the ERP Project till October 2013 ERP was implemented in the telecom factory (Mumbai), Training Centre (ALTTC, Ghaziabad), a project circle (Western Telecom Project), a Maintenance Region (Southern Telecom Region), two Territorial Circles (Karnataka and Maharashtra) and the Corporate Office having resolved the post implementation issues your Directors have decided to complete the roll out phase in all the remaining units during this financial year. Implementation of ERP across the Organization will enable profit centre accounting (lines of business wise), cost control of inventory across units, efficient asset management, centralized data base of all the employees, centralized (circle wise) pay roll processing, centralized operations leading to standard optimal procedures and having centralized IT systems leading to transparency, visibility of information and data accuracy.

TELECOM FACTORIES

Telecom Factories of your Company located at Kolkatta, Gopalpur, Kharagpur, Jabalpur, Richhai, Bhilai and Mumbai are in-house manufacturing units engaged in production of various telecom products. These factories with a staff strength of 2,287 as on 1st April 2014 touched the output of Rs.153.25 crore in the year under review. For 2014-15, a target of Rs.500 crores has been set for them.

Your Directors have initiated several initiatives for setting up manufacturing facilities for various telecom/electronic equipments and other related products for revenue generation by gainfulutilization of the huge infrastructure of these telecom factories, by selection of suitable partners.

Advance work order has been issued to M/s Fujikura Ltd., Japan for utilization of spareable infrastructure of TF Mumbai for setting up manufacturing facilities for OF Cable, Accessories / Network components and other related products.

Floating/finalizationofEoI/RFPisunderwayforthefollowing:-

Selection of partner for setting up manufacturing facilities for production of latest technology batteries for telecom / non telecom applications at TF Kharagpur;

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Selection of partner for setting up manufacturing facilities for solar power supply system for telecom and non telecom applications at TF Bhilai;

Selection of a consultant to advise and assist your Company in selection of suitable partners for manufacturing various telecom/electronic equipment and other relatedproducts in Telecom Factories.

In addition, the production of PLB HDPE Telecom Duct is being augmented in Telecom Factories to meet the increased demand for NOFN Project being implemented by your Company. To meet the internal demand of the Company, 2 Nos. of manufacturing lines have also been purchased.

HUMAN RESOURCES AND INDUSTRIAL RELATIONS

Industrial Relations

Industrial relations have remained by and large cordial during the year under review.

CORPORATE RESTRUCTURING PLANS

Your Company has engaged M/s Deloittee to undertake comprehensive review and prepare a financial revival plan. The consultant will also prepare a comprehensive HR plan Organisation structurealongwithstaffingnormsfordifferentrolesandcadres,newstreamsrequiredtofacilitatecompanys core business and man power plan for the next 5 years to bring down the expenditure on staff and suggest the strategy with specific action plan for sustainable revival of the Company.

TRAINING OF EMPLOYEES

Your Companys state of the art training centres located at various places design and conduct numberoftrainingprogrammes,fortheskilldevelopmentandqualitytrainingoftheemployeesofvarious levels. By opting for the on-line/computer based programmes for completing the mandatory EPP upgradation trainings, considerable cost saving has been effected by the training centres.

BSNL AICTE Employability Enhancement Training Programme

Pursuant to the MoU entered into with the All India Council for Technical Education(AICTE) for utilizing the training facilities and faculty of the Company for benefit of students covered under this programme, a total of 7,555 engineering students got benefitted. The initiative was centrally implemented and monitored through BRBRAITT, Jabalpur and supported by other Training centres of the Company. A total of Rs.8.4 Cr was earned by the Company under this segment.

Training Revenues

During the year under review about 1,10,000 students got associated with the Company for vocational/summer training programmes and a total revenue of of Rs.27 Crores was earned under this segment.

Foreign Deputations

During the period under review, 40 officers of the Company were deputed abroad for various training programmes, exhibitions, meetings, conferences and business meetings etc., to have first hand information on the latest developments taking place in the telecommunication sector and for upgrading the knowledge and skills


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IMPLEMENTATION OF OFFICIAL LANGUAGE POLICY

The Governments guidelines on the implementation of the official language policy is followed scrupulously. Your Company has a full fledged official language Wing.

RESERVATION POLICIES OF THE CENTRAL GOVERNMENT

Government policies with regard to reservations for various categories of employees in the matters of recruitments and promotions are being followed.

A glimpse of representation of Scheduled Caste, Scheduled Tribe, OBC, Ex-Servicemen, Physically Disabledemployeesandtheirrepresentationason31.3.2014:-

Group Total No. of Employees

Scheduled Caste

Scheduled Tribe

OBC Ex-Servicemen

Executive 47,768 7,668 2,341 5,655 113Non-Executive 1,90,509 35,363 9,960 14,933 490Total 2,38,277 43,031 12,301 20,588 603

Category Executive Non-Executive TotalBlindness of low vision 0 29 29Hearing Impairment 9 22 31Locomotor Disability or Cerebral Palsy 166 347 513

STAFF GRIEVANCES REDRESSAL MACHINERY

Your Company has established a Staff Grievancs Redressal Cell at the Corporate Office for looking into the grievances of the staff members. Similar cells have also been established at Circle/SSA levels.

COMPLAINTS COMMITTEE FOR REDRESSAL OF SEXUAL HARASSMENT AT WORK PLACES

In compliance with the guidelines of the Government on the subject, your Company has established a Complaints Committee at the Corporate Office and at Circle/SSA level for looking into the complaints of employees regarding sexual harassment at work place.

CORPORATE SOCIAL RESPONSIBILITIES

Your Company, being a pan-India service provider of telecom services very crucial in the nation building and connectivity, the philosophy of corporate social responsibility was also one of its pursuits. Apart from the programmes aimed at the welfare of the employees and their family members, Your company was also pursuing the objectives of CSR in various other spheres viz., Contributions to the PMs National Relief Fund, Assistance during natural calamities etc. To guide these programmes, Your Board had its Corporate Social Responsibility Policy. Your Company always remains at the forefront to serve the people when difficult circumstances arise due to natural calamities.

When the natural calamity struck the state of Jammu and Kashmir, your Company rose to the occasion and put in its best efforts to restore the communication links of that region by bringing

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satellite based services (DSPT) etc. A task force team is working in close coordination with the Army and the local administration to restore the services.

With a view to provide immediate relief to the victims, your Company has allowed free calls (local as well as STD) and free SMS service to all those BSNL customers who will be using BSNLs mobile network in the Srinagar area for ten days starting from 12.9.2014. Further, there shall be no incoming/outgoing barring for postpaid customers for one month from 12.9.2014.

Constitution of the Corporate Social Responsibility (CSR) Committee of the Board

Pursuant to the provisions contained in the Section 135 of the Companies Act 2013 and Rules thereunder, Your Board, in its 154th meeting held on 7.3.2014 constituted the Corporate Social Responsibility Committee (CSR Committee) of the Board comprising Shri Ajai Vikram Singh Independent Director, Shri A.N.Rai CMD/Director(Enterprise) & (HR) and Shri N.K.Gupta Director(CFA) as Members and the Secretary of the Company as the Secretary of the Committee. The Terms of Reference of the CSR Committee are as per the provisions of the Section 135 of the Companies Act 2013 and Rules made thereunder. Owing to losses, no specific budget was earmarked for the CSR activities during the year under review.

CONSERVATION OF ENERGY & TECHNOLOGY ABSORPTION

Being a service providing Company, these rules are not applicable to your Company. However, as a responsible corporate citizen, your Company is fully concerned and committed as regards its responsibility for Environmental Protection. Therefore, all required measures for EnergyConservation and Use of Alternate Renewable Energy Resources are being taken at all levels.

Awards for Energy Conservation

Your Company was awarded 1st and 2nd National Level Energy Conservation award by the Ministry of Power.

Certificate of Merit was awarded to your Company by Bureau of Energy Efficiency, Ministry of Power.

FOREIGN EXCHANGE EARNINGS AND OUTGO

Earned: - 32.89CroreUsed : - 96.45Crore

COMPLIANCES

All the Senior Management Personnel including key managerial personnel handling different verticals/units have been delegated with administrative and financial powers thereto, are responsible to ensure adherence to all the applicable laws, rules, guidelines etc., and ensures the compliance of the enterprise risk management policy of the company as a routine, while taking or processing the detail for decision or approval by the competent authority(ies). The Company Secretary ensures the compliance of all the applicable provisions of the Companies Act and other applicable laws.

Being the successor and assigns of the erstwhile Departments of Telecom Services and Telecom Operations with vast geographical spread, the BSNL follows the existing system. Accordingly, all the litigations before the honble courts are handled by the respective verticals and units under their control with the help of Advocates.


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RIGHT TO INFORMATION

In line with the directions contained in the Right to Information Act 2005, Your Company has nominated CPIOs at the Corporate Office as well as the field units of the Company for providing information to citizens.

CORPORATE GOVERNANCE

The term Corporate Governance connotes putting in a system of best practices in the sphere of governance, which in turn, lead to value maximization for all the stakeholders. Existing governance practices have been strengthened further over the years with sustained focus on excellence in all spheres.

The Guidelines on Corporate Governance for the Unlisted CPSEs laid down by the Department of Public Enterprises are being implemented by the Company with effect from the year 2008-09.

All the Members of the Board; and the Senior Management Personnel of the Company have affirmed compliance with the Companys Codes of Conduct for the Members of the Board and the Senior Management Personnel, respectively.

Your Company has obtained certificate from M/s Hemant Singh & Associates, Company Secretaries, regarding compliance of conditions of corporate governance as stipulated in the Guidelines on Corporate Governance for Central Public Sector Enterprises 2007, and revised further vide No.18(8)/2005-GM, dated 14.5.2010, issued by the Department of Public Enterprises.

Management Discussion and Analysis Report, Report on Corporate Governance, together with the Certificate on compliance of conditions of corporate governance as stipulated in the Guidelines onCorporateGovernanceforCentralPublicSectorEnterprisesformspartofthisReport.Quarterlyprogress reports on the implementation of CG Norms for the unlisted CPSEs issued by the DPE are being sent regularly to the Administrative Ministry.

DIRECTORS RESPONSIBILITY STATEMENT

Pursuant to the provisions of Section 217(2AA) of the Companies Act, 1956, the Directors of the Companyherebyconfirm:

(i) that in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;

(ii) that the Directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit or loss of the Company for that period;

(iii) that theDirectors had taken proper and sufficient care for themaintenance of adequateaccounting records in accordance with the provisions of this Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

(iv) that the Directors had prepared the annual accounts on a going concern basis.

STATUTORY DISCLOSURES

NoneoftheDirectorsofyourCompanyisdisqualifiedasperprovisionofSection274(1)(g)oftheCompanies Act, 1956.

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Further,YourDirectorshavemadenecessarydisclosures,asrequiredundervariousprovisionsoftheAct,whichweretakennotebytheBoardofDirectorsandrequisiteformswerefiledwiththeappropriate authorities.

None of the employees of your Company is drawing remuneration exceeding the limits laid down under provisions of section 217(2A) of the Companies Act 1956 read with Companies (Particulars of Employees) Rules, 1975.

DIRECTORS

Government of India, Ministry of Communications and IT, Department of Telecommunications vide their order No. 1-1/2014-PSA dated 6.5.2014 and 11.06.2014 communicated the approval of the competent authority for extension of the tenure of Shri R.K.Upadhyay CMD upto 30.4.2014 and thereafter upto 30.6.2014 i.e., the date of his superannuation.

Pursuant to Government of India, Ministry of Communications and IT, Department of TelecommunicationsorderNo.1-10/2011-PSAdated30.6.2014, consequentuponattaining theage of superannuation Shri Upadhyay retired from service w.e.f., afternoon of 30.6.2014.

Pursuant to GoI, MoC & IT, DoT Order No.1-1/2014-PSA dated 30.6.2014 in terms of the instructions contained in the DoP & T (Office of Establishment officer) OM No.26(3)EO/2004(ACC) dated 17.8.2005, the competent authority approved the entrustment of the additional charge of the post of CMD to Shri A.N. Rai Director(E) for a period of three months w.e.f., 1.07.2014 or until further orders, whichever is the earliest. During the period of holding additional charge as aforesaid, Shri A.N. Rai will not be entitled to any additional remuneration. Shri Rai assumed the charge of office of CMD on Forenoon of 1.7.2014.

Government of India, Ministry of Communications and IT, Department of Telecommunications vide their Notification No.1-4/2012-PSA dated 13.2.2013 conveyed the ex-post-facto approval of the ACC for entrustment of the Additional charge of Director(HR) to Shri A.N.Rai Director(E) for a further period of six months beyond 4.12.2012 or till a regular incumbent is appointed or until further orders, whichever is earliest.

Thereafter, wef 4.6.2013, till the receipt of further orders from Department of Telecom, CMD was looking after the additional charge of the Director (HR). Government of India, Ministry of Communications and IT, Department of Telecommunications vide Notification No1-4/2012-PSA dated 8.8.2013 conveyed the approval of ACC for extension of additional charge of the post of Director(HR) in favour of Shri A.N.Rai Director(Enterprise) for a period of six months beyond 4.6.2013 or till a regular incumbent is appointed or until further orders, whichever is earliest.

Thereafter, wef 4.12.2013, till the receipt of further orders from Department of Telecom, CMD was looking after the additional charge of the Director (HR). Government of India, Ministry of Communications and IT, Department of Telecommunications vide Order No.1-4/2012-PSA, dated 7.2.2014 conveyed the approval of the Appointments Committee of the Cabinet conveyed by the DoP & T (ACC) vide their communication No.24(6)EO/2012(ACC), dated 30.1.2014, the extension of entrustment of the additional charge of Director(HRD) in favour of Shri A.N.Rai Director(Enterprise) for a period of six months wef 4.12.2013 or till a regular incumbent is appointed or until further orders,whicheveristheearliest.Consequentuponthecompletionoftheperiodon3.6.2014,since4.6.2014, additional charge of the office of Director(HR) vest in the CMD.


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Pursuant to Government of India, Ministry of Communications and IT, Department of Telecommunications Notification No. 1-3/2013-PSA, dated 31.1.2013 appointing Shri Anupam Shrivastava as Director(CM) in scale of pay of Rs.75,000-1,00,000/-[IDA] scale for a period of five years from the date of assumption of charge of the post on or after 1.5.2013, Shri Shrivastava assumed the charge of office of Director(CM) wef 1.5.2013.

Pursuant to Government of India, Ministry of Communications and IT, Department of Telecommunications Notification No.1-2/2010-PSA(Vol.II), dated 29.1.2013, on attaining the age of superannuation, Shri K.C.G.K.Pillai Director(Finance) retired from the service wef the Afternoon of 30.11.2013.

Thereafter, wef 01.12.2013, till the receipt of further orders from Department of Telecom, CMD was looking after the additional charge of the Director(Fin). Government of India, Ministry of Communications and IT, Department of Telecommunications, vide Order No.1-4/2012-PSA, dated the 5th February 2014 communicated that, in terms of DoP & T (Office of Establishment Officer) OM No.26(3)EO/2004(ACC) dated 17.8.2005, the additional charge of Director(F) shall vest in Shri Anupam Shrivastava, Director(CM) with immediate effect for a period upto 28.2.2014 until further orders whichever is the earliest.

Thereafter, wef 01.03.2014, till the receipt of further orders from Department of Telecom, CMD was looking after the additional charge of the Director (Finance). Government of India Ministry of Communications and IT, Department of Telecommunications, vide Order No.1-4/2012-PSA, dated the 9th May 2014 pursuant to the approval of ACC conveyed by DoP & T vide No.24(5) EO/2014 (ACC) dated 30.4.2014 conveyed the extension of the entrustment of the additional charge of the post of Director(F) to Shri Anupam Shrivastava Director(CM) for a period of six months wef 1.3.2014 or till the appointment of regular incumbent to the post or until further orders, whichever is the earliest.

Thereafter, wef 01.09.2014, till the receipt of further orders from Department of Telecommunications, CMD was looking after the additional charge of Director(Finance).

Pursuant to the provisions contained in Section 152 of the Companies Act 2013, Shri A.N.Rai Director (Enterprise) [ DIN 05100500 ], who retires by rotation and, being eligible and consented to, offers himself for re-appointment in the Annual General Meeting of the Company.

Pursuant to the provisions contained in Section 152 of the Companies Act 2013, Shri N.K.Gupta Director (CFA) [ DIN 01140881 ], who retires by rotation and, being eligible and consented to, offers himself for re-appointment in the Annual General Meeting of the Company.

Pursuant to the provisions contained in Section 161(3) of the Companies Act 2013 and rules made thereunder, Article 111 of the Articles of Association of the Company, read with GoI, MoC & IT, DoTs Order No.5-2/2013-PSA dated 26.8.2014, the Board of Directors in their 158th meeting held on 29.9.2014, appointed Smt.Darshana Momaya Dabral [ DIN 06975127 ] DDG(TPF) in DoT as Government Nominee Director on the Board of Directors of the Company.

Your Directors place on record their deep appreciation for the valuable services rendered by Shri R.K.Upadhyay CMD, Shri K.C.G.K.Pillai Director(Finance) and Shri Shahbaz Ali Government Director during their association with the Company.

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AUDIT COMMITTEE

The Committee has Prof.N.Balakrishnan, Non official Part Time (Independent) Director as Chairman; and, Shri Ajai Vikram Singh Non official Part Time (Independent) Director, Shri Shahbaz Ali Government Director [upto 26.8.2014] and Shri Anupam Shrivastava Director(CM) as Members. Director(Finance) is the Regular Invitee and Shri H.C.Pant, the Company Secretary & Sr.GM(L) is the Secretary of the Committee.

AUDITORS

M/s Walker Chandiok & Co., Chartered Accountants, New Delhi were appointed as Statutory Auditors of the Company by the Comptroller & Auditor General of India. In addition to the Statutory Auditors 47 Branch Auditors were also appointed for the year 2013-14. The Report of the Statutory Auditors and the comments of the Comptroller and Auditor General of India, alongwith replies of the Management thereto are attached as Addendum forming part of this Report.

COST AUDITORS

Pursuant to the directions of the Government of India, Ministry of Corporate Affairs, Cost Audit Branch for Cost Audit of the Telecommunication Companies by the Cost Accountants, Your Company has appointed M/s Chandra Wadhwa & Co., Cost Accountants as Cost Auditors for carrying out the Cost Audit of the Company for the year 2013-14. The Cost Audit Report for the Financial Year 2012-13 was filed with the MCA, Registrar of Companies on 18.01.2014.

Your Board has appointed M/s Balwinder & Associates, Cost Accountants as Cost Auditor of the Company for conducting the Cost Audit and Accounting Separation Report (ASR) Audit for the Financial Year 2014-15. Further, pursuant to the provisions of Section 148 of the Companies Act 2013 and Rule 14(a) of the Companies (Audit and Auditors) Rules 2014, Your Board has approved the remuneration of Rs.3,99,000/-[Rupees Three Lakh Ninety-Nine Thousand only] plus applicable taxes as Audit Fee to M/s Balwinder & Associates Cost Auditor, subject to ratification of the same by the Members in the ensuing Annual General Meeting.

Shri A.N. Rai, CMD inaugurating the Swachh Bharat Abhiyaan campaign in BSNL on 2nd October, 2014.


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ACKNOWLEDGEMENTS

Your Directors would like to place on record their sincere appreciation and gratitude to the subscribers of Companys telecom services, the stakeholders, and bankers and to all the State Governments and regulatory authorities for their continued cooperation and invaluable support.

Your Directors express their deep appreciation for the hard work and dedicated efforts put in by the employees at all levels and look forward to their continued contribution in achieving the mission and objective of the Company.

For and on behalf of the Board of Directors,

Sd/- [A.N.RAI]

Place : NEW DELHI CHAIRMAN AND MANAGING DIRECTOR

Dated : 29.09.2014

DECLARATION BY THE CHAIRMAN AND MANAGING DIRECTOR REGARDING COMPLIANCE WITH THE CODE OF CONDUCT BY THE BOARD MEMBERS AND THE SENIOR MANAGEMENT PERSONNEL OF THE COMPANY DURING THE FINANCIAL YEAR 2013-14

I, A.N.Rai, Chairman and Managing Director Bharat Sanchar Nigam Limited, do hereby declare that all the Members of the Board and the Senior Management Personnel of the Company have affirmed their compliance to the Code of Conduct for Board Members and the Senior Management Personnelduring2013-14

Sd/- [A.N.RAI]

Place : NEW DELHI CHAIRMAN AND MANAGING DIRECTOR

Dated : 18.09.2014

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MANAGEMENT DISCUSSION AND ANALYSIS REPORTINDUSTRY STRUCTURE AND DEVELOPMENTSIndian Telecom sector witnessed a very fast growth in the past decade. Demand for more specialized services in the sector has fuelled the technological advancements. With a major role in the countrys socio-economic development, telecom sector plays a pivotal role in the overall growth story. Liberalisation of the sector and huge investments have accelerated the pace of the growth of the sector.

Telecom services, after hyper competitive and volatile stint, are now slowly gaining stability. This, together with an increased spurt of passive infra sharing, outsourcing of non-core network functions etc., is expected to rationalize the capex and opex of the existing large operators, thus, leading to availability of affordable services to the common man.

MAJOR REGULATORY DEVELOPMENTS/CHALLENGESSTRENGTHS / OPPORTUNITIES/WEAKNESS/THREATSCentury old expertise as telecom operator, huge spareable passive infra, last mile linkage across the nookandcornerofthecountryandseamlessconnectivityacrosstheregionsmakeBSNLuniqueamongst the incumbent operators.

Governments plans for smart cities, new industrial corridors and huge infra expansions indicate a strong business opportunity. These expansions may fuel demand for voice and data services from both enterprise customers as well as the individual subscriber. Further, growth plans have increased the demand for more personalized services. BSNL with its strength is likely to position itself as the leading pan-India service provider.

OUTLOOKThe telecom sector has witnessed considerable technological advancements and huge investments in the core infra in the past decade. Governments thrust on e-delivery, ever increasing demand for non-voice telecom services and the huge untapped rural market for data services present a strong business case for the sector in the coming days.

RISKS AND CONCERNSINTERNAL CONTROL SYSTEMS AND THEIR ADEQUACYBeing the successor of erstwhile Central Government Departments of Telecom Services and Telecom Operations, your company has a well defined and planned internal control systems and procedures commensurate with its size and operations. Internal checks are routinely carried out by the internal audit teams all over the country. Internal audit wing of the Company is headed by a Principal General Manager(PGM) level officer.

Apart from its own Internal Audit machinery, Your Company, being the Central Public Sector Enterprise, is subject to the Resident Audit Office scheme of the Director General of P & T Audit under the aegis of C & AG of India, CVC Mechanism with independent CVO and the Guidelines of the Department of Public Enterprises.

In accordance with the Guidelines on Corporate Governance Norms issued by the Department of Public Enterprises, the Audit Committee of the Board had discussions with the Internal Audit Teams and reviewed the Internal Audit Paras.

Further, pursuant to the directions of the Government of India, Ministry of Corporate Affairs for Cost Audit of the Telecommunication Companies by the Cost Accountants, your Company has appointed Cost Auditors.


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DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

During the year 2013-14, the company incurred a loss of Rs. 7,019.76Crore [Previous year Rs. 7,884.44 Crore]. While the Income from services is Rs. 26,152.26 Crore [Previous year Rs. 25,654.81 Crore], other income was Rs. 1,843.09 Crore [Previous year Rs. 1,473.08 Crore].

There was an increase of 1.94 % in Income from services in comparison to previous year, the other income increased by 25.12 %. There was an increase of 3.20 % in the total Income in comparison with the previous year.


ENVIRONMENTAL PROTECTION AND CONSERVATION, TECHNOLOGICAL CONSERVATION, RENEWABLE ENERGY DEVELOPMENTS, FOREIGN EXCHANGE CONSERVATIONS

As a responsible corporate citizen, Your Company is fully concerned and committed as regards its responsibility for Environment.

Apart from using energy efficient products, the implementation of energy conservation measures are being monitored regularly. These steps have resulted in a saving of Rs.84.40 crores.

CORPORATE SOCIAL RESPONSIBILITY

The philosophy of corporate social responsibility - hovering around wide array of spectrum of activities like nation building, energy conservation, technological empowerment of citizens with affordable communication means are pursuits of the organization itself. In addition, assistance and welfare programmes for the staff and their family members are pursued as a routine.

Constitution of the Corporate Social Responsibility (CSR) Committee of the Board

Pursuant to the provisions contained in the Section 135 of the Companies Act 2013 and Rules thereunder, the Board, in its 154th meeting held on 7.3.2014 constituted the Corporate Social Responsibility Committee(CSR Committee) of the Board comprising Shri Ajai Vikram Singh Independent Director, Shri A.N.Rai CMD/Director(Enterprise) & (HR) and Shri N.K.Gupta Director(CFA) as Members and the Secretary of the Company acts as the Secretary of the Committee. The Terms of Reference of the CSR Committee are as per the provisions of the Section 135 of the Companies Act 2013 and Rules made thereunder. Due to losses, there was no separate budgetary allocation for CSR Programmes in the year 2013-14. The Company continued with its Employee/Family related welfare schemes throughout the year.

Pursuant to the MoU entered into with the All India Council for Technical Education(AICTE) for utilizing the training facilities and faculty of the Company for benefit of students covered under this programme, a total of 7,555 engineering students got benefitted. The initiative was centrally implemented and monitored through BRBRAITT,Jabalpur and supported by other Training centres of the Company.

CAUTIONERY STATEMENT

These discussions are forward looking within the meaning of the applicable laws and regulations. Actual performance may deviate or vary from the explicit or implicit expectations.

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REPORT ON CORPORATE GOVERNANCECorporate Governance, in plain terms aims to maximize the value of all the stakeholders through a set of guidelines and principles. Being a leading pan-India telecom service provider to the nation, BSNL is committed to adopting the globally accepted best corporate governance norms practices.

With highly institutionalized system aiming for transparency, disclosures and internal control, BSNL has already been complying with most of the codified norms, viz.-

Composition of the Board; Complete conformity with Board procedure, specially, the Secretarial Standards laid

down by the Institute of Company Secretaries of India; Constitution of the Audit Committee of the Board headed by Non-official Part-Time

(Independent) Director, with 2/3rd of the Members comprising of other than Whole-time Directors;

Constitution of the Remuneration Committee of the Board as mandated by the Corporate Governance Norms for the unlisted CPSEs issued by the Department of Public Enterprises;

Constitution of the Corporate Social Responsibility Committee (CSR Committee) of the Board, as mandated by the provisions of Section 135 of the Companies Act 2013 and Rules thereunder;

Clear cut demarcation of powers with Delegation of Financial and Administrative Powers to the Management Committee of the Board, CMD and the Functional Directors, and below Board-level executives;

Conduct, Discipline and Appeal Rules for all the Employees and reporting systems; Code of Conduct for the Members of the Board and annual affirmation to the Code by

the Members; Code of Conduct for the Senior Management Personnel of the Company and annual

affirmation to the Code by the Senior Management Personnel; Disclosures by theDirectors to the Board ofDirectors and filing of requisite forms

evidencing the taking note of the disclosures by the Board with the appropriate authorities;

Enterprise Risk Management Policy of the Company; Appointment of Statutory and Branch Auditors by the C & AG of India; Appointment of Cost Auditors; Audit jurisdiction of the DG P & Ts Resident Audit Office scheme, Dedicated Internal Audit Set up; Amenability with the Guidelines of Central Vigilance Commission; Outside independent personnel as CVO; Dedicated and full-fledged Vigilance set up across the units of the country; Whistle blower policy in vogue; Compliance of the Orders and Guidelines of the Government of India - Department of

Public Enterprises, Administrative Ministry and host of other compliances.

With the introduction of Corporate Governance Norms for the Unlisted CPSEs by the Department ofPublic Enterprises, for achieving complete compliance, requiredchanges/modificationshavebeen put in place.


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BOARD OF DIRECTORS

Size of the Board

Being a Government Company, the power to appoint or remove a Director vest with the President of India. The Article of Association provides that the minimum strength of the Board shall not be less than three (03) and the maximum at fifteen (15).

Composition of the Board

The Board comprise of 12 Directors, of which 6 [including the CMD] are whole time Directors; 2 Government Nominee Directors and 4 Non-official Part Time Directors. Thus, the Board has the optimum mix of 50% Whole-time and 50% part-time Directors. The composition is as per the Corporate Governance Norms for the unlisted CPSEs, laid down by the Department of Public Enterprises.

ThedetailsofthecompositionoftheBoardofDirectorsisasfollows:-

Whole-Time Directors [ 06 including CMD] [Appointment against positions of CMD, Director(Finance) and Director(HRD) awaited from the Government of India]

1. Shri R.K.Upadhyay, CMD [Upto 30.6.2014]

Additional charge of Director(HRD) vested with CMD between 5.3.2012 to 18.6.2012; and, thereafter charge vested with the Director(E) till 3.6.2013. Thereafter, w.e.f. 4.6.2013 till the receipt of further orders from the GoI, CMD looked after the charge of Director(HR). GoI DoT vide their letter dated 8.8.2013, conveyed the approval of ACC for extension of additional charge of Dir(HR) to Shri A.N.Rai Director(E) wef 4.6.2013 for a period of six months or till a regular incumbent is appointed or until further orders whichever is the earliest. Thereafter, w.e.f. 4.12.2013 till the receipt of further orders from the GoI, CMD looked after the charge of Director(HR). GoI, MoC & IT, DoT vide order No.1-4/2012-PSA dated 7.2.14 conveyed the approval of ACC for extension of additional charge of Director(HR) to Shri A.N.Rai wef 4.12.2013 for a period of six months or till a regular incumbent is appointed or until further orders, whichever is the earliest. Thereafter, again, wef 4.6.2014, till the receipt of further orders from GoI, CMD looked after the charge of Director(HR).

Wef 1.12.2013, till the receipt of orders from GoI, CMD was looking after the additional charge of Director(F). GoI, MoC & IT, DoT vide order No.1-4/2012-PSA dated 5.2.2014 entrusted the additional charge of the office of Director(F) to Shri Shrivastava with immediate effect for a period upto 28.2.2014 until further orders whichever is the earliest. Thereafter, wef 1.3.2014 till the receipt of further orders of GoI, CMD was looking after the additional charge of the office of Director(F). GoI, MoC & IT, DoT vide order No.1-4/2012-PSA dated 9.5.2014 conveyed the extension of the entrustment of the additional charge of the post of Director(Finance) to Shri Shrivastava for a period of six months wef 1.3.2014 or till the appointment of regular incumbent to the post or until further orders, whichever is the earliest. On attaining the age of superannuation, pursuant to the GoI, MoC & IT, DoT Order No.1-10/2011-PSA dated 30.6.2014, Shri Upadhyay retired from service wef A/N 30.6.2014.

2. Shri A.N.Rai CMD* / Director(Enterprise) & **(HR) & ***(Fin)

*Wef 1.7.2014 GoI, MoC & IT, DoT vide Order No.1-1/2014-PSA dated 30.6.2014 entrusted the additional charge of the post of CMD to Shri A.N.Rai Director(Enterprise) for a period of three months wef 1.07.2014 or until further orders, whichever is the earliest. Shri Rai assumed the charge of office of CMD wef F/N of 01.07.2014.

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**Additional charge of Director(HR) vested with Shri Rai wef 5.12.2011 to 4.3.2012. Wef 5.3.2012 to 18.6.2012 additional charge vested with the CMD. Thereafter, Government of India, M/o Communications and IT vide order dated 19.6.2012 conveyed the approval of the competent authority for entrustment/extension of the additional charge of Dir(HR) to Shri A.N.Rai for a period upto 4.9.2012. Thereafter, GoI DoT vide order dated 27.2.2013 conveyed the ex-post-facto approval of the ACC for extension of the Additional charge of Dir(HR) to Director(E) for a further period of 3 months beyond 4.9.2012; which was followed by another ex-post-facto approval for a further period of six months beyond 4.12.2012. Thereafter, w.e.f. 4.6.2013, till the receipt of further orders, from GoI, CMD looked after the additional charge of Dir(HR). GoI, MoC & IT, DoT, vide their order dated 8.8.2013 conveyed the approval of ACC for extension of the additional charge of Director(HR) to Shri A.N.Rai Dir(E) wef 4.6.2013 for a period of six months or till a regular incumbent is appointed or further orders, whichever is the earliest. Thereafter, wef 4.12.2013, till the receipt of further orders from GoI, CMD looked after the additional charge of Dir(HR). GoI, MoC & IT, DoT, vide order No.1-4/2012-PSA, dated 7.2.2014 conveyed the approval of the ACC for extension of entrustment of additional charge of Director(HR) to Shri Rai for a period of six months wef 4.12.2013 or till a regular incumbent is appointed or until further orders, whichever is the earliest. Thereafter, till the receipt of further orders from GoI, CMD is looking after the additional charge of office of Director(HR).

***Consequent upon the conclusion of the period of entrustment of the additional charge ofDirector(F) to Shri Anupam Shrivastava Director(CM) on 31.8.2014, thereafter, till the receipt of orders from the GoI, CMD was looking after the additional charge of Director(F).

3. Shri K.C.G.K.Pillai Director[Finance] [Upto 30.11.2013] [Pursuant to GoI, MoC & IT, DoT order No.1-2/2010-PSA (Vol.II) dated 29.11.2013, on attaining the age of superannuation Shri Pillai retired from service wef A/N of 30.11.2013]

4. Shri N.K.Gupta Director(CFA) [ Wef 1.6.2012]

5. Shri Anupam Shrivastava Director(CM) * (Fin) [ Wef 1.5.2013]

* Wef 1.12.2013, till the receipt of orders from GoI, CMD was looking after the additional charge of Director(F). GoI, MoC & IT, DoT vide order No.1-4/2012-PSA dated 5.2.2014 entrusted the additional charge of the office of Director(F) to Shri Shrivastava with immediate effect for a period upto 28.2.2014 until further orders whichever is the earliest. Thereafter, wef 1.3.2014 till the receipt of further orders of GoI, CMD was looking after the additional charge of the office of Director(F). GoI, MoC & IT, DoT vide order No.1-4/2012-PSA dated 9.5.2014 conveyed the extension of the entrustment of the additional charge of the post of Director(Finance) to Shri Shrivastava for a period of six months wef 1.3.2014 or till the appointment of regular incumbent to the post or until further orders, whichever is the earliest. Thereafter, wef 1.9.2014, till receipt of orders from GoI, CMD was looking after the additional charge of Director(F).

Government Nominee Directors [02 ]

1. Shri Shahbaz Ali, DDG [TPF & A/cs ] in DoT [ Upto 26.8.2014]2. Ms.Rita A.Teoatia Additional Secretary(T) in DoT [Wef 04.09.2012]3. Smt.Darshana Momaya Dabral, DDG[TPF] in DoT [ Wef 29.9.2014]

Non-official Part-Time Directors [ 04] [ Two Positions are vacant]

1. Shri Ajai Vikram Singh, Director [ Wef 17.7.2012]2. Prof.N.Balakrishnan, Director [ Wef 17.7.2012]


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Shri R.K.Upadhyay CMD [ DIN: 00204311] [Upto 30.6.2014] :- Shri Rakesh Kumar Upadhyay, joined BSNL as Chairman & Managing Director on 30th April 2011. Shri Upadhyay is a B. Tech in Electronics Engineering from IT, Banaras Hindu University (BHU). He is also a graduate of Defence Services Staff College , Wellington and was awarded M.Sc.(DS) degree by Madras University . He has done MBA in Marketing Management from Indira Gandhi Open University. His career began in Department of Telecommunications in 1975 after his selection by UPSC for Indian Telecom Service. In DoT, he gained experience in areas of Planning, Installation and Commissioning, Commercial Administration and Operations. In October 1996, he proceeded on Deputation to TCIL, where he remained till August 1999. During his deputation, he successfully worked as Project Director in the Foreign Projects at Sana and as General Manager in Yemen. On return from TCIL, he worked in BSNL as General Manager in J&K Circle from January 2000 to June 2003. He was again selected for Deputation in TCIL in June 2003 where he was entrusted the job of Chief Project Director, Algeria, Group General Manager (New Technology) and Executive Director (Project Monitoring) and other important assignments. He took over the charge of Director (Projects), TCIL on 01.11.2005 and wassubsequentlyselectedasChairman&ManagingDirectorofTCIL.

Prior to assumption of the charge of CMD BSNL, he remained at the helms of TCIL from 1st March 2007 to 29th April 2011. During his tenure in TCIL he gained rich experience in the fields of Planning, Project Management, Operations and Business Development. In TCIL, he guided the successfulimplementationofmanycomplexprojects.Someofthenotableprojectsare:PanAfricane-Network Project Providing Tele-Education and Tele-Medicine Services to 34 African Nations from seven Universities and 12 Super Specialty Hospitals of India; National Internet Backbone Project; SAARC e-Network Project; Optical Ground Wire Project over 3,000 Kilometer Electrical Transmission Lines in live line conditions in Algeria. He has to his credit the turning around of TCIL as its CMD.

Shri A.N.Rai CMD/Director(Enterprise) & (HR) & (Fin) [DIN: 05100500] :- Shri A.N.Rai assumed the charge of office of Director(Enterprise) on 19.9.2011. Shri Rai, officer of Indian Telecommunications Service 1977 batch holds B.Tech Degree in electronics and communications Engineering from BHU Varanasi. Shri Rai, was actively associated with Installation, Commission and Maintenance of Switchingequipmentsatvariousplacesinthecountry.HewasalsotrainedinDigitalTelephonesystems in various countries like UK, Germany and USA. As senior telecom management professional, he was involved with Development, Operation and Maintenance of Telecom Services at various places like Allahabad, Kanpur etc. As Deputy Director General at the Corporate Office, he handled Rural Networking and CMTS areas. Prior to the joining as Director(Enterprise), he was the Chief General Manager of Orissa Circle of the BSNL, which bagged the prestigious Telecom CircleoftheYear2010-11Award.

Shri K.C.G.K.Pillai Director[Finance] [DIN 05283174] [Upto 30.11.2013] :- Shri K.C.G.K.Pillai took over the charge of Director(Finance) on 25th April 2012. An MBA in Finance and Post Graduate in Political Science, Shri Pillai, an Officer of the Indian P & T Accounts and Finance Service-1981 batch, entered Government Service in 1982. Spanning over a career of 30 years in the P & T Accounts and Finance Service, he served in the Uttar Pradesh, Gujarat and Maharashtra Telecom Circles of the Department of Telecommunications; apart from a stint of over 7 Years in the MTNLs Finance Wing. Possess vast experience of Budget, Banking, Treasury Management, Human Resources and Personnel Management and Procurement Finance. Before being appointed as Director(Finance), he was the Principal General Manager heading the Procurement Finance and Finance-Personnel units.

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Shri N.K.Gupta Director(CFA) [DIN: 01140881] [ Wef 1.6.2012] :- Shri Naresh Kumar Gupta took over as Director CFA in BSNL on 1st June 2012. Shri Gupta is B.E. from Delhi College of Engineering (DCE), in Electronics and Communications. He joined the Department of Telecommunications, Government of India through Indian Telecommunications Services (ITS) Group A 1978 batch. Since then he has worked in various capacities in different units of DoT/TEC/BSNL/MTNL and has versatile experience covering almost all the fields in telecommunications including installation, operations, development and management of telecom networks, sales and marketing and financial management etc. Before joining as Director (CFA) on the BSNL Board, N K Gupta was working as Chief General Manager Punjab Telecom Circle in BSNL and prior to that he was heading the Information Technology division for CFA business unit of BSNL. He in the capacity of DDG (I) TEC was instrumental in framing specifications and Network architecture against which BSNL and MTNL have implemented their broadband Networks. He has represented DoT in many committees of TRAI, DIT, and also in various Inter-Ministerial Committees like committee on preparing encryption policy, E-Commerce and Information Security working Group. He has widely travelled abroad and represented India in number of UN & ITU meetings including World Summit on Information Society in Geneva and other important assignments. He was an active member of Apex Committee involved in the planning and execution of NIB-II of BSNL and also framing the specification for ERP implementation in BSNL which is currently in progress. He was deeply involved in Pan-India Roll out of zonal OSS and BSS for Wire-line and Broadband segment which helped BSNL to changeover from decentralized 334 SSA level systems to 4 zonal data centres with implementation of world class COTS applications. N K Gupta is also instrumental in conceptualizing BSNL entry in to the Data Center (IDC) Services business for opening up a new revenue stream by leveraging BSNLs existing infrastructure with an innovative revenue share model. Presently BSNL is in the processofacquiringIDCbusiness.AsDirector(CFA)BSNL,heismainlyresponsibleforimprovingthe Systems and Methods to achieve optimal performance and maximum utilization of BSNLs extensive country-wide Infrastructure and network. He is also responsible for achieving business interests of theCompanybywayof high customer satisfaction and timelyprovisionof qualityservices in BSNL CFA segment. He is also responsible for induction & adoption of new technologies and committed to provide state-of-the-art modern and world class telecom services in the highly competitive environment.

Shri Anupam Shrivastava Director(CM) & * (Fin) [DIN: 06590535] [ Wef 1.5.2013] :- Shri Anupam Shrivastava is a 1981 batch of Indian Telecom Service (ITS) Officer who has around three decades of experience in the field of telecommunications. He is BE (Electronics & Communications) and is also MBA (Mktg.). He has taken telecommunication trainings in India & Japan. Shri Shrivastava joined BSNL Corporate Office as Director (CM) on 1st May, 2013 and is responsible for the growth of mobile business of GSM / CDMA / WIMAX in BSNL, including all activities related to Sales & Marketing, VAS, Tariff finalization & revenue. As Zonal Director for North Zone he is responsible for monitoring growth and maintenance of Telecom Network in 8 Circles. Prior to this assignment, Shri Shrivastava had held the post of Sr. GM, Ajmer TD where he gave special attention to Sales & Marketing of telecom products in the SSA which resulted in physical growth of connections in all segments and increased revenue for the SSA. Ajmer SSA was chosen for the pilot project for NOFNwhichwassuccessfullycompletedaheadoftarget.Hiscontributionsinprovidingqualityservice to BSNL customers have been widely acknowledged and he strived to achieve benchmarks prescribed by TRAI / BSNL C.O. for various service parameters. Shri Shrivastava also worked as GM Jodhpur SSA and during his stint there he gave record number of mobile and landline connections with special emphasis on data and broadband business. He also has experience of working as GM (BB) in Rajasthan Telecom Circle with additional charge of Marketing and Enterprise Business. Shri


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Shrivastava also has overseas working experience in Zimbabwe where he was posted in Harare while representing TCIL as Task Force Leader to upgrade their telecom services. Due to his hard work and coordination skills the fault rate was drastically curtailed which was well appreciated by PTC Zimbabwe and TCIL management. He was associated with 6th G-15 Summit in Harare in 1996. Shri Shrivastava has delivered lectures extensively in different institutions both in India and abroad including many universities and management colleges. He also organized many seminars and skill up-gradation courses at many places. A firm believer in team work, Shri Shrivastava always sets examples by himself and uses latest technological applications to promote and inculcate team work amongst his subordinates and maintain synergy with superiors in BSNL management.

Shri Shahbaz Ali, Government Director [DIN: 03282551] [Upto 26.8.2014] :- Shri Shahbaz Ali, having Master Degree from Patna University, is an officer of Indian P&T Accounts & Finance Service of 1989 Batch. He is presently working as DDG(TPF & Accounts) in GOI, Ministry of Communication & IT, Deptt. of Telecom. Shri Ali has wide and varied experience in the field of Telecom Sector as he has worked in various capacities in Deptt. of Telecom and its Public Sectors, Mahanagar Telephone Nigam Ltd and Bharat Sanchar Nigam Ltd.

Inhispresentassignment,ShriShahbazAliisresponsiblefor:-

Formulation of Budget of DoT. Rendering Finance advice for DoTs PSEs (including disinvested PSEs). Nodal Officer for Indian Telegraph Act for billing related disputes. Overall accounting functions of Department of Telecom.

Shri Ali has also rendered his services as Government Nominee Director on the Board of Directors of Tata Communications Ltd.

Ms. Rita A. Teoatia Government Director [DIN: 02876666] [Wef 04.09.2012] :- Ms. Rita Teaotia joined the Indian Administrative Service in the year 1981 and served in the districts of Panchmahal and Gandhinagar in Gujarat. Subsequently, she worked in the energy sector as MD, GujaratIndustries Power Company Ltd., and Secretary (Energy). She has worked extensively at policy making and strategic levels in the fields of Education, Health, Womens Development and rural Development. From 2003-2007, she worked in the Government of India as Joint Secretary in the Ministry of Health and Family Welfare. Prior to the present assignment, she also served as Additional Secretary, in the Department of Electronics and Information Technology (DeitY),from 19th March, 2012. In this capacity, she headed the National eGovernane Plan, which entailed working closely with all State Governments and arms of DeitY, including National Informatics Centre(NIC), StandardisationTestingandQualityCertification(STQC)Directorate,CentreforDevelopmentofAdvance Computing (C-DAC) and National Institute of Smart Governance(NISG).At present, she is serving as Additional Secretary in the Department of Telecommunications and ex officio Secretary of the Telecom Commission. Ms.Rita Teaotia has received four National eGovernance awards for applications developed during her various assignments. She holds a Masters in Medieval and Modern Indian History from the University of Lucknow.

Shri Ajai Vikram Singh, Director [DIN : 02184840] [ Wef 17.7.2012 ] :- Shri Ajai Vikram Singh was born at Ajmer and had his education at Mayo College (Senior Cambridge) and Government College (Graduation), Ajmer. After a short spell in the Private Sector, he joined the Indian Administrative Service(IAS) in 1967 and, after the initial training, was allotted to the Uttar Pradesh Cadre. He has served in various capacities in the State and Central Governments, both, in the field and in the Secretariats. He was District Magistrate in Ghazipur, Sultanpur, Moradabad, and Aligarh

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districts, as also Commissioner, Lucknow Division. He has served as Managing Director of two State enterprises (Rajasthan State Warehousing Corp-on deputation, & UP Export Corp.) In the Uttar Pradesh Secretariat, he has been Secretary, Small Industries; Secretary, Heavy Industries; Industrial Development Commissioner & Principal Secretary.In the Government of India, the postings have been with the Cabinet Secretariat, Ministry of Defence, Ministry of External Affairs, and the Ministry of Industries. He did the National Defence College(NDC) Course in 1984 during the first of his four tenures with the Ministry of Defence. He was posted as Minister (Supply) in the High Commission of India at London for two years. In November 2000, the State of Uttar Pradesh was bifurcated into Uttar Pradesh and Uttaranchal, and Shri Ajai Vikram Singh was appointed as the first Chief Secretary ofthenewStateofUttaranchal(NowUttarakhand).In2001,consequenttothere-organisationoftheMinistryofDefence,hewasappointedtothenewlycreatedpostofSpecialSecretary(Acquisition).ThisinvolvedsettingupaneworganizationandevolvingproceduresforallcapitalacquisitionsfortheArmedForces.Subsequently,hehasbeenRevenueSecretary(NowtheMinistryofFinance),Secretary, Ministry of Non-Conventional Energy Sources (now the Ministry of New & Renewable Energy), Secretary, Ministry of Road Transport & Highways, and Defence Secretary. During his various postings in the Central and State Governments, he has been Chairman of the following Companies:- Indo-Gulf FertilisersLtd., IndiaPolyfibresLtd.,PashupatiAcrylonLtd.,U.P.TextileCorporation and U.P.Finance Corporation. In addition, he has served as Director on the Boards of, inter-alia,thefollowingCompanies:-IFCILtd.,BHELLtd.,MarutiUdyogLtd.,HMTLtd.,HeavyEngineering Corp. Ltd., Andrew Yule Ltd., Bharat Bhari Udyog Nigam Ltd., Bharat Yantra Nigam Ltd., Hindustan Aeronautics Ltd., Mazagon Docks Ltd., Goa Shipyard Ltd., and PICUP. Shri Ajai Vikram Singh superannuated from service on 31st July 2005, and is now living in his home-town, Ajmer, with his wife, son, daughter-in-law, and two grand-children. He is involved with issues connected with ecology, the environment, and local development. He is currently Chairman of the Pune based World Institute of Sustainable Energy(WISE), a society devoted to the spread of clean and renewable energy. He is also on the Board of Directors of Pipavav Defence & Offshore Engg.Co.Ltd., and Overseas Infrastructure Alliance Infrastructure Alliance(India) Pvt. Ltd. He has taken up the cultivation of Jojoba ( a non-edible oil bearing plant) and Aloe Vera on a trial basis in his village near Ajmer.

Prof. N. Balakrishnan, Director [DIN: 00181842] [Wef 17.7.2012] :- Prof. N. Balakrishnan received his B.E. (Hons.) in Electronics and Communication from the University of Madras in 1972 and Ph.D. from the Indian Institute of Science in 1979. He then joined the Department of Aerospace Engineering as an Assistant Professor. He is currently the Associate Director of the Indian Institute of Science and a Professor at the Department of Aerospace Engineering and at the Supercomputer Education and Research Centre. His areas of research where he has more than 200 publications in the international journals and international conferences include Numerical Electromagnetics, High Performance Computing and Networks, Polarimetric Radars, Aerospace Electronic Systems, Information Security, Complex Social Networks and Digital Library. He has received many awards including the Padmashree by the President of India, 2002, Homi J. Bhabha Award for Applied Sciences, 2004, JC Bose National Fellowship in 2007, the Alumni Award for Excellence in Research for Science & Engineering by IISc, 2001, Millennium Medal of the Indian National Science Congress in 2000, Ph D (Honoris Causa) from Punjab Technical University in 2003, the CDAC-ACS Foundation Lecture Award in 2008 and the Academy Excellence Award, Defence Research and Development Organization in 2009. He was the NRC Senior Resident Research Associate at the National Severe Storms Laboratory, Norman, Oklahoma, U.S.A. from 1987-1989. He was a visiting research scientist at the University of Oklahoma in 1990, Colorado State University in 1991 and is a Visiting Professor at Carnegie Mellon University from 2000 till


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2006. He is an Honorary Professor in Jawaharlal Nehru Centre for Advanced Scientific Research (JNCASR). He is a Fellow of the Academy of Sciences for the Developing World (TWAS), Indian National Science Academy, Indian Academy of Sciences, Indian National Academy of Engineering, National Academy of Sciences and Institution of Electronics & Telecommunication Engineers. He is one of the Directors of Data Security Council of India (Currently its Chairman), Central Bank of India, Bharat Sanchar Nigam Limited (BSNL) and of CDOT-Alcatel Research Centre at Chennai, a member of the Council of CDAC, Member of the Joint Advisory Board of Carnegie Mellon University atQatarandMemberoftheGoverningCouncilofIITKharagpur,HewasoneoftheeditorsoftheInternational Journal on Distributed Sensor Networks, and Editor-in-Chief, International Journal of World Digital Libraries. Till recently he was a member of the National Security Advisory Board and the Board of Governors of IIT Delhi and of IIT Madras. He was also one of the Directors of the Bharat Electronics Limited (BEL), a Part-Time Member of the Telecom Regulatory Authority of India. He is the National Coordinator of Indo-US Million Books to the Web Digital Library Projects (www.ulib.org and www.new.dli.ernet.in ). He, along with his colleagues from India, China and the US created the worlds largest Digital Library which proudly hosts more than a million books thatarefreelyaccessiblebyanyoneanywhereandanytime.Moredetailscanbefoundathttp://swati.dli.ernet.in/balki

Smt. Darshana Momaya Dabral, Government Director [DIN: 06975127] [Wef: 29.09.2014] :- DarshanaMomayaDabral(IP&TAFS,1990Batch):-AsanIndianCivilServant(Batch1990),havenearly 24 years of senior level experience at Central Government in the Dept. of Telecommunication in the areas of Planning, Budgeting, Accounts, Revenue, Finance, Administration and overall Financial Management. Throughout involved in key positions of critical decision making and tasks of organisational & national transformation through drafting and implementation of legislations for new polices.

Strengths:Leadership,focusingoncollaborativeteamefforts,processorientationandinculcationof transparency & accountability to extract desired levels of work efficiency and performance.

Completed PGDM (FM) (12-14) at National Institute of Finance Management Faridabad, on deputationbasis.PresentlypostedasDDG(TPF)atDoTHQ,responsibleforMinistrysBudgetandinvolved in financial advice to Public Sector Units under DoT.

Appointment and Tenure of the Directors

In terms of Article No.111 of the Articles of Association, the Directors are appointed by the President of India.

Functional Directors are appointed for a period/tenure of five years from the date of assumption of charge, or till the date of superannuation or until further orders of the President of India, whichever is the earliest. The salary and allowances are determined by the President of India.

The Governme

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