Management discussion and analysis (MDA) is an unaudited and informal description of an annual report in which the management discusses:-
Financial Performance,
Past Results,
Future Plans and Strategies,
Other Relevant Information, etc.
According to present scenario across the world, it can be observed that the lighting industry is growing constantly. The industry itself is too dynamic and innovative. Lighting industry has always succeeded in fulfilling the demand and expectation of all its customers by providing new products frequently; viz. CFLs, LEDs, Halogen Lamps, Decorative and fancy lights and many more.
Autopal Industries limited is the one of the major manufacturers in India in the Lighting sector. We have always succeeded in satisfying our customers needs. We are the one who launched CFLs in India for the very first time. We have always prioritised quality and efficiency in our products. At Autopal, strategies are formulated keeping in mind the following aspects:-
Concern about environment.
Efficiency of the product.
Need of Customers.
Innovation.
INDUSTRY STRUCTURE, DEVELOPMENT AND OUTLOOK
Position of the Industry:
The shift toward new technology and incremental on existing lighting product have yielded a range of new energy efficient lighting solutions, including Compact Fluorescent Lamps (CFLs), Lighting Emitting Diodes (LEDs), halogen .LED technology has been globally recognized as extremely efficient and eco-friendly in comparison to other lighting products. The market size of Indian LED industry may touch Rs 21,600 crore by 2020 on the back of governments decision to switch to LED for all street lamps and public space lighting, an industry official said.
The Indian LED industry was pegged at Rs 1,925 crore out of the lighting industrys aggregate turnover of Rs 13,000 crore in 2013. As projected, the turnover of Indian lighting industry by 2020 will be Rs 35,000 crore and LED will account Rs 21,600 crore.LED Sector companies pointed out that in the wake of continual Narendra Modi- led governments support for the promotion of LED lighting, this market is expected to grow substantially.
The government has decided to switch to LED for all street lamps and public space lighting. Moreover, the "Make in India" initiative launched by Prime Minister Narendra Modi, will provide a boost to the LED industry, he said and added that Surya has already commenced in-house production of indoor and outdoor LED products at its plants. These include LED bulbs, down-lighters of various shapes and sizes as well as street lights. The companys prime focus is to educate and promote only sustainable energy efficiency and drive the LED segment forward.
Role of the Autopal
Quality has always been the driving phase in every process from the raw material stage to the finished product at APIL. APIL is a leading player in general lighting sector Company with its product and brand being in Indian household for the past 40 years specializing in general light and presently in LEDs .It is the country market leader in the CFLs, LEDs, halogen, fans-delivering an equivalent amount of light while using less energy. These lighting solutions are widely available in the market, and present an opportunity for consumers, business, governments and all other segments of economies to save money while enjoying equal or better levels of lighting service.
Government has a pivotal role to play in accelerating the adoption of energy-efficient lighting in the country. Government could also engage in labelling activities that help ensure that the energy costs and lighting efficacy are visible to the market at both the products and the system level.
OPPORTUNITIES AND THREATS:
OPPORTUNITIES:-
We eagerly look forward to hire skilled workforce to improve the performance.
Increase in purchasing power of Customers in the Local/National economy.
"Make in India" initiative launched by Prime Minister Narendra Modi, will provide a boost to the LED industries.
Dynamic nature of the Lighting Industry.
Government promoting LED manufacturing by reducing taxes.
Customer awareness for eco-friendly products is widening the customer base.
To become a part of GO GREEN Revolution and update ourselves with latest technology.
Growing preference of LED lights globally.
Technological advancement.
To encash the imposition of GST in terms of Transparency, low taxation cost and a uniform and efficient tax regime.
THREATS:-
Large and increasing competition nationally and internationally.
Rising cost of wages (Basic wage, etc).
Possible relocation costs due to poor location currently held.
Increasing interest rates (increases borrowing repayments, etc).
"AUTOPAL MERITO"-
PROFESSIONALS LED LIGHTING
"A Journey of thousand miles begins from a single motivation to sustain a long journey, one need to stay energized, motivated and absolutely focusedAUTOPAL- MERITO "Professional in LED"- A Professional extension, to the solemn pronounced by the founder of Autopal group towards next generation lighting & energy saving A small contribution into the revolution of the enigmatic light energy, leading to the evolution of the next generation LED lighting technology. Being dynamic, innovative and multiphase LED lighting technology involving in all sphere of the engineering - from electronic, mechanical, and chemical to metallurgy. It involved an embedded team of 100 professionals in R&D, D&D, quality control, from different engineering streams synergized to form a cutting edge, innovative brand in LED Lighting- MERITO.
Initiated by Autopal group, a trusted brand in lighting products, with billions of delighted customers worldwide, a 40 years old brand in the field of lighting & pioneering in many next generation lighting in India. Our commitment to deliver world class solutions to our client in the shortest time lag enabled us to establish presence across two concerns of India and leading to improve customer relationship by being cost effective without compromising with quality.
The products are manufactured at the world class production facilities with modern state-of- art, quality lab, confers to the International standards (IEC 60598), International Safety Standards (IEC 61347, c SELV, etc.)
The focus is to engrave the LED products pervasively, with the advanced and modest product range worldwide. The technological edge has been derived out from the management of the key parameters:
Excellent ergonomics on thermal management:-
Selection of LED package for best optical performance and economical at same time. Uniformity in light CCT, usage of 2/3 Macadam binning. Drivers confer to IEC standards, specially designed to suit the Indian varied voltage conditions.
VARIOUS STANDARDS COMPLIED BY APIL:-
1. Avant-garde design by experts of industry.
2. World class product developed by team of experienced engineers.
3. State-of-art production facilities, R&D and QC Lab.
4. Product confirming to IEC 60598, IEC 61347-1-2, JES22-A108.
5. Multiple protection for drivers -OVP,OCP,SCP,OTP
6. 2/3 Macadam Binning for LED CCT, Uniformity in light colour.
7. Intelligent thermal management -Max. output, light weight Jong life
8. Special OVP/Surge protection & voltage fluctuation designed for Indian condition.
9. Comply with International Safety Standards:
UL 8750, IEC 60590, EN 55015, IEC 61000-3-2,
IEC 61000-3-3,4-4,4-5,ROHS,SELV,L.P.
10. Photo biologically safe as per (IEC 62471).
11. Data (Life, Lumen etc.) based on actual results.
ABOUT THE PRODUCTS:-
LIGHT EMITTING DIODE: - LEDs bring several advantages to the lighting industry, including high efficiency and durability, and, with superior life over other lamp sources; their required maintenance is greatly reduced. This translates into energy savings, maintenance savings and an overall reduction in cost of ownership over the products lifetime.LED Lights are extremely efficient and eco-friendly.
As they say "A New Solution for Tomorrows Evolution"
Now the technology has advanced to the point where using LEDs for general illumination is now viable. Lighting industry experts are gaining a better understanding of how to capitalize on that technology.
It is our privilege to introduce you the new range of LED lamps & Luminaries for Domestic, Commercial and Industrial Use.
The new launches Include"
LED Based lighting applications such as LED Bulb series, LED Tube light series, Essential series, Disigno series, LED Spot series, LED COB Series, slim LED Panel, LED Down lighter series, LED Outdoor Series. For office lighting and retail lighting.
Autopal is the vanguard of innovation and sustainability. We build all our lighting products with international quality and consumer needs in mind.
"OTHER LED PRODUCTS"
Autopal also has a vast range of new domestic & commercial lighting products like LED strip light, LED Ground Burial, LED Wall light, LED Step light, LED Bulk head, LED Bulbs, LED Executive Cable lamps, Tuneable tubelights, Garden spike lights, electronic chokes, etc in its product bucket. Great demand for LED light being energy efficient has led to the expansion in range of products.
ADVANTAGES OF LED LIGHTS
Long Lasting.
Energy Efficient.
Eco- Logically Friendly.
Durable.
Zero UV Emissions.
Ensign Flexibility.
Operational In All Temperature (Cold and Hot)
Light Dispersement.
Instant Lighting.
Adaptable to Frequent Switching.
Large Coverage Area.
"TECHNICAL AND PROFESSIONAL STAFF"
QUALITY, PRODUCT DEVELOPMENT R&D AND D&D:- "R&D"
The steady growth in LED technology turn generates persistent search for new materials, components and devices for proper operation. This dynamic makes constantly improving existing products or design new ones from an idea. Our R&D department is working for high efficacy, high power factor and demesne drivers. Product Range on which work is in progress is Bay Lamp, Street lights.
Our proposal is based on R&D, based on energy savings is achieved with LED technology, the restriction of the use of polluting substances (lead, mercury, cadmium, etc)- ROHS directive- and in no emission of UV and IR. We use the latest electronic technology for power supplying, as well as developed various control devices with different communication protocols required for the insertion of the LED in all the fields of lighting.
The management of ideas allows us to capture, share, and exploit these ideas in a systematic way through the know how to innovate and improve continuously within the LED industry. Our R&D department is regularly working to further improve the efficiency and develop new range of products with improved and advanced technology in the lighting sector. New and improved methods of Research and Development are in operation with skilled and trained workforce.
"D&D"
The D&D department has been equipped with the State of Art Testing and Development Instruments and equipments. The D&D is equipped with Agilest CRO, Fluke Oscilloscope, Ballast Analysers, various Component Testing and measuring Instruments, Magnetic Core Analyser and selectors, LCR, Lamp Characteristic Measuring Equipments (PMS-50) (Spectrophoto calorimeter), Goniophotometer, Surge Generator, High Voltage breakdown Tester, Humidity Chamber, etc. The main feature is the simulation equipments, few purchased and few designed so as to simulate the different conditions of the market in the Lab environment like surge testing, high voltage testing of the products, testing the products life cycle beforehand.
The main success of our department lies in the minimal replacements from the market, the credit goes to the highly ! qualified D&D engineers, whose understanding of the Indian Market (i.e., demographic conditions; such as, High Hills with snow, massive desert, high rainfall affected areas, and so on) and then working day and night, resulted in circuits suitable for varied demographic and weather conditions, thereby uniting the great country with same CFL. The engineers worked intelligently to keep the lights last longer, keeping in mind the fluctuations in power supply in India.
"HUMAN RESOURCES POLICY"
"It is believed that manpower is the most important asset for every organisation, so does Autopal believes."
Our objective is to emerge as one of the worlds best known Companies in the field of lamps & lightings. Autopal is committed to create an open and transparent organization that is focused on people and their capability, and fostering an environment that enable them to deliver superior performance. Attracting quality human resource and focusing on their development, motivation and retention has always been a priority area for APIL. We have taken initiatives for appointment of talented and innovative employees with formation of "Nomination and Remuneration Committee."
Autopal believes that continued corporate success depends upon the ability to recruit, train, deploy and retain highly talented professionals in a high performance work culture and good work ethics. The organization has a vision of developing itself into a world class organization, excelling in the field of lighting and we are poised to achieve this through a team of well trained, skilled, experienced, self-motivated and delighted employees.
HUMAN RESOURCES PRINCIPLES
Human Capital is the most Valuable Asset for us.
We aim to work with dynamic, creative, self-motivated, hardworking intelligent people.
We work with people who are aware of total quality management.
We have highly qualified and experienced team of Quality Management, who can understand our Clients expectations and can respond to them in time.
We believe in both organisational as well as individuals growth.
We believe in continuous training and development.
We learn from our experience.
ORGANISATION VALUES
Autopal is a Customer Driven enterprise.
Encourage Creativity & Innovation to drive 3 Ps. (People, Processes and Products)
Respect for Individual.
Respect for work-place ethics.
Focus on Quality.
Healthy Working Environment.
INTERNAL CONTROL SYSTEM:-
The Internal Control system is an integral component of the companys corporate governance. The Company has adequate and proper system of internal control to ensure that all assets are safeguarded and protected against loss from unauthorized use and disposition. It also ensures that transactions are authorized, recorded and reported correctly. Audit Committee is regularly updated to ensure the effectiveness of internal control system, deficiency is reported and actions are taken to overcome the deficiency. Internal Control System prevents deviations and fraudulent transactions in the organization and ensures discipline and correction of deviations (if any).
Extensive programme of risk and transaction based internal audit cover all division, plant, branches and different areas of operation. The audit committee of the board is updated in every quarter on major internal observation, compliances with accounting stands, risk management and control system.
The Companys internal audit system which is headed by Mr. D.D. Kalla, an experienced officer of the Company conducts internal audit on regular basis. All non- conformities and deficiencies are reported to the top management and corrective actions are taken thereon.
RELIABILITY:-
Our relation with our staff, customers, shareholders and other stakeholders are based on mutual trust. In every condition, transparency, ethical practices and compliances are adhered.
RISK AND CONCERNS:-
ln the lighting segment, technological obsolescence is an inherent business risks. Government energy policies and development of new innovation energy efficient product may render some of the existing production facilities obsolete. Despite of inferior quality, Chinese products are regularly dumped in the Indian market at lesser price from time to time. The Indian Industry thus faces major threat from China in wide range of products due to its advantages of economies of scale, low financial Cost and other industry friendly Government policies.
ENTERPRISE RISK MANAGEMENT:-
Enterprises Risk Management (ERM), at Autopal encompasses practice relating to identification, assessment, monitoring and mitigation of various risks to the business objectives. It also enables the company to leverage market opportunities effectively. Our core values and ethics provide the platform for our risk management practices, which is in line with the companys commitment to deliver sustainable value to all its stakeholders.
Types of Risks:
1. Industrial.
2. Scarcity of Resources.
3. Environmental.
4. Society.
5. Operational.
FINANCIAL REVIEW AND ANALYSIS 2016-17
Particulars | (Rs in Lakhs) | |
2016-17 | 2015-16 | |
Net Sales | 3460.67 | 4017.47 |
Other Income | 6.96 | 7.96 |
Operating Profit before Finance cost, Depreciation, Tax and Extraordinary items | 385.01 | 335.60 |
Less: Depreciation & amortization expenses and Finance Costs | 339.64 | 284.78 |
Profit before Tax and Extraordinary items | 45.37 | 50.82 |
Less: Exceptional Items | ||
Add: Extraordinary Items | 12.15 | 15.17 |
Less: Tax | 6.43 | 15.53 |
Net Profit for the year | 51.09 | 50.46 |
Add: Balance brought forward from previous year | ||
Profit available for appropriation | 51.09 | 50.46 |
Appropriation of Profits | ||
Transfer to General Reserve | ||
Balance carried over to Balance Sheet | 51.09 | 50.46 |
OPERATIONS:-
Autopal had net Sales of Rs. 3460.67 lakhs in financial year 2016-17 against Rs. 4017.47 lacs in previous financial year 2015-16. The operating profit before finance cost, depreciation and tax is Rs. 385.01 lakhs in current year 2016-17 against Rs. 335.60 lakhs in previous financial year.
CAUTIONARY STATEMENT:-
This statement contains the forward looking statements about the financial performance, prospects, expectations and such statements must be viewed in the context of risk concerns, changes in the industry and economy and technological obsolescence and various other factors. We cannot assure the exact outcome of the expectations.
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