MANAGEMENT DISCUSSION & ANALYSIS INDUSTRY STRUCTURE & DEVELOPMENT Indian Economy is being considered as one of the fasted growing Economy in World. To cope with the space of Industrial Growth of the Country. Prime focus has been given to infrastructure development. As a consequence there of a boom is resulting in construction industries all over the country which resulted in increasing the demands for the products of Electrical & Electronics Industries in Geometric probation. Over all Industrial growth of the country also stimulates the demands for modern sophisticated and luxury items as usual. However, the traditional items continue to rule the mass market. Yours Directors are duly geared to the changed situation and have appropriately revised its production schedules and product ranges to avail of the market opportunities for the fullest extent. The company has entered into technical collaboration with a Korean Company for manufacture as well import of very Electronics Items and lighting products keeping in view the market demands as also the Government supply requirements. OPPORTUNITIES & THREAT The increased cost of power has turned the general attention towards economy in power consumption. In the process the developed countries have concentrated in the CFL Lights. The Indian Market is not lagging behind. Encouraged by the growing demands for CFL Lamps more and more companies have entered the market by importing cheaper varieties from South Asia and Korea in bulk. There is a huge opportunity for domestic manufacture of CFL Variety at a lower cost. The company is in process of importing the Technologies for manufacture of CFL Variety here. But there is a threat of un - even competition from the dumping by cheaper varieties by foreign manufacturers from the East. OUTLOOK The Company has finally come out the red and is now endeavoring to turn the table. Your Directors foresee brighter days ahead. The new generation is committed to grow progressively always in tune with the country's growth ahead. RISK & CONCERN Your Directors do not foresee any immediate risk as such. Yet the following factors may influence further prospects to some extent: (i) Fluctuation in Budget allocations for infrastructure Developments affecting the growth in the demand for Lighting products; and (ii) Intensity of the price war imported by new entrants from other Asian Countires, specially China, USA and Korea. RESEARCH & DEVELOPMENT The Company is in the process of setting up a more modern Research & Development centre with necessary state of the art laboratory facilities. The new setup will be exclusively engaged for development of a new range of value added products. Necessary steps are being taken to obtain accreditations for ISO 9001-2000 for maintenance of international quality standards. INTERNAL CONTROL The Company has proper and adequate system of internal controls commensurate with the size of the Company and. the nature of its business. Regular Internal Audits and checks are carried out to ensure that the responsibilities are executed effectively and that adequate systems are in place. HUMAN RESOURCE DEVELOPMENT & INDUSTRIAL RELATION The Company continues to maintain excellent Industrial Relations while ensuring continuous development of Human Resources through appropriate training and Educational Programmes towards achieving improved productivity and flexibility in production and marketing. |