Goldstar Power Ltd Management Discussions.

Industry Structure and Developments:

Incorporated in 1999, our Company, "Goldstar Power Limited" is engaged in Manufacturing of Batteries and Battery Product. Goldstar Power Limited is located at Hapa, Jamnagar on Jamnagar-Rajkot Highway, Gujarat with an integrated plant wherein Battery Scrap and Discarded Batteries procured from dealers and retailers are converted to finished product. Our Company was incorporated on July 12, 1999 and has completed more than fifteen four years since incorporation. Our Company spread over an area of Approx, 125000 Sq. Ft., ours is Indias only fully integrated unit having all production facility at a single place under single control.

Our Promoter, Muljibhai Pansara has more than Four decades of experience in Battery industry. He has been the founder chairman of the Gujarat Small Scale Battery Association and president of Federation of India Small Scale Battery Association for west zone. In the year 1982 Shri Muljibhai entered in to Battery business keeping roots of Agriculture intact. Since inception, Shri Muljibhai is keeping pace with technology as guiding force for development of the business. Though it was new business for him, he is never required to look back because of his vision and hard working attitude. Successfully travelled around 35 years of long journey from a Partnership Firm to a well managed corporate i.e., Goldstar Power Limited. Today Goldstar is the highly reputed name in the power industry. We are leading manufacturer in Small Scale segment.

Our Company is promoted by Mulji Pansara and Amratlal Pansara. Both our promoters are subscribers of our Company and are directors since inception. We started by manufacturing of battery plates and gradually moved to forward and backward stages of manufacturing. Later, in the year 2006, Navneet Pansara, son of Mulji Pansara joined our Company as Director and since then is involved in all day to day activities of our Company. In the year 2008, Vishal Pansara, younger son of Mulji Pansara joined our Company who leads the marketing department of our Company.

We believe in manufacturing and delivering quality products and our manufacturing process is under constant supervision by qualified engineers. Integrated plant and quality driven products are our major strengths. We maintain quality standard conforming to ISI, FIFO and International Quality standards like ISO under BVQI Approved. As a part of continual quality up gradation, we have adopted ISO 9001: 2015 system certification. Our Companys major revenue is from sale of Battery and Lead Plates various measures ranging from GS 1000TT to GST 2300TT, GS 400 to GS 2000 and GST, GSD and GSV versions.

Our product range covers various types of batteries including Fully Automotive Batteries for Car, Tractor and Heavy Duty Trucks, Tubular Batteries for Inverter and Solar Application, SLI and Tubular Batteries for E-Rickshaw, SMF-VRLA Batteries for UPS Application, Motorcycle Batteries, Solar Batteries, Pure Lead and Alloy batteries.

Our manufacturing facility is equipped with requisite infrastructure including machinery, other handling equipment to facilitate smooth manufacturing process. We Endeavour to maintain safety in our premises by adhering to key safety norms. Our manufacturing process is integrated from procurement of raw materials to final testing.

We are dedicated towards safe supply and hygiene of our products by controlling the procurement of standard raw material, monitoring the process parameters, maintaining appropriate sanitation and personal hygiene and to comply with applicable statutory and regulatory requirements of our products.

Currently our Company caters to all three segments of market viz. exports, domestic/after sales market and OEM. We have a widespread customer base with our domestic customer base situated in various regions of the country and our international customers situated across varied countries like Uganda, Nepal, Lebanon, Dubai, Syria, Yaman, Afghanistan etc.

At Goldstar, we desire to demonstrate its capability to provide various products conforming to needs of its customers. We aim satisfy the needs of customers including product requirements, the regulatory authorities and accreditation bodies and to achieve customer satisfaction by maintaining the best standards at all level from procurement to dispatch.

Opportunities and Strength:

i. Experienced Promoters and Dedicated Management Team.

ii. Strong Relationship with Reputed Institutional Customers.

iii. Fully Integrated Plant. iv. Experienced Marketing Team.

v. Operational Excellence.

vi. Quality Control.

vii. Diversified Product Portfolio.

Threats and risk:

i. Significant Economic changes.

ii. Seasonal factors.

iii. Technological advancement and changes

iv. Real or perceived Product Contamination

v. Significant changes in Government Regulations or Regulatory Policies

vi. Competitive prices and desired Quality. vii. Warranty Claims Issues

Internal Control Systems and their adequacy:

There is an adequate internal control procedure commensurate with the size of the company and nature of the business for inventory, fixed assets and for the sale of goods or services. The Company has implemented proper and adequate systems of internal control to ensure that all assets are safeguarded and protected against loss from any unauthorized use or disposition and all transactions are authorized, recorded and reported correctly. The system ensures appropriate information flow to facilitate effective monitoring. The internal audit system also ensures formation and implementation of corporate policies for financial, reporting, accounting and information security.

The Company has constituted Audit committee to overlook the internal control systems and their adequacy. Audit committee regularly reviews and gives recommendations on proper and adequate internal control systems.

Financial performance:

During the Year under report, the Company has earned revenue from the operations of Rs 43.23 Crores as compared to previous year revenue i.e. Rs 54.81 Crores. Moreover, the Company has earned net profit (after tax) of Rs 28.89 Lacs compared to previous year net profit of Rs 59.07 Lacs. Your Companys operating and financial performance scaled new heights during the year. Moreover, it is also assured that the Management will leave no efforts untouched to increase the profitability in the forth coming years also.

Segments:

Goldstar Power Limited does not have multiple segments. Hence, comments on segments are not required.

Human Resources:

We believe that our employees are key contributors to our business success. We focus on attracting and retaining the best possible talent. Our Company looks for specific skill-sets, interests and background that would be an asset for our business.

We have at around 91-100 employees, Our manpower is the prudent mix of experienced and youth which gives us the dual advantage of ability and growth. Our work progress and skilled/semiskilled/unskilled resources together with our strong management team have enabled us to successfully implement our growth plans.

Cautionary statements:

All statements made in Management and Discussion Analysis have been made in good faith. Many unforeseen factors may come into play and affect the actual results, which may be different from what the management envisages in terms of performance and outlook. Factors such as economic conditions affecting demand/supply and priced conditions in domestic & international markets in which the Company operates, and changes in Government regulations, tax laws, other statues and other incidental factors, may affect the final results and performance of the Company.

"ANNEXURE-VIII"

CERTIFICATION FROM MD & CFO

To,

The Board of Directors,

GOLDSTAR POWER LIMITED,

Behind Ravi Petrol Pump,

Rajkot Highway Road, At & Post Hapa,

Dist. Jamnagar-361 120.

Subject: Submission of Compliance Certificate under Regulation 17(8) of SEBI

(Listing Obligations and Disclosure Requirements) Regulations,2015.

Dear Sir,

We, Navneet Pansara, Managing Director and Dhruti Pansara, Chief Financial Officer of the Company jointly declare and certify as under, in relation to the financial year 2017-2018:

A. We have reviewed financial statements and the cash flow statement for the year and that to the best of our knowledge and belief:

(1) these statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading;

(2) these statements together present a true and fair view of the listed entitys affairs and are in compliance with existing accounting standards, applicable laws and regulations.

B. There are, to the best of our knowledge and belief, no transactions entered into by the listed entity during the year which are fraudulent, illegal, or violative of the listed entitys code of conduct.

C. We accept responsibility for establishing and maintaining internal controls for financial reporting and that we have evaluated the effectiveness of internal control systems of the listed entity pertaining to financial reporting and we have disclosed to the auditors and the audit committee, deficiencies in the design or operation of such internal controls, if any, of which we are aware and the steps we have taken or propose to rectify these deficiencies.

D. We have indicated to the Auditors and the Audit committee:

• there is no significant changes in internal control over financial reporting during the year;

• there is no significant changes in accounting policies during the year; and

• there is no instances of significant fraud of which we have become aware and the involvement therein, if any of the management or an employee having a significant role in the listed entitys internal control system over financial reporting.

FOR GOLDSTAR POWER LIMITED
Navneet Pansara Dhruti Pansara
Managing Director Chief Financial Officer
[DIN: 00300843] [DIN: 01943399]