ANNEXURE D TO THE DIRECTORS REPORT
1. Industry structure and developments Overview.
Fiber to the home (FTTH), also called "fiber to the premises" (FTTP), is the installation and use of optical fiber from a central point directly to individual buildings such as residences, apartment buildings and businesses to provide unprecedented high-speed Internet access. FTTH dramatically increases the connection speeds available to computer users compared with technologies now used in most places.
The growth of the global FTTH equipment market is driven by increase in demand for enhanced quality fiber in network architecture from service providers. In addition, rise in demand for energy conservation, strong optical network setup, and continuous improvement in technology propel the growth of the market.
With a purpose to enlighten readers, especially investors and new market entrants, the study centered at FTTH Equipment market presents an in-depth analysis focusing on recent developments and existing competitive landscape. The striking aspect of this assessment associates to the availability of valuable information related to production capacity and market share, which eventually help buyers. In addition, knowledge about revenue, gross margin, consumption, supply, export, import volume etc., are all cited to make this research study advantageous to the readers.
The market segmentation based on application include (Internet TV, VOIP, Remote Education, Internet Gaming, Virtual Private LAN Service, Smart Home Application, Others), which have constantly steered the demand for FTTH Equipment.
As this assessment gains pace, awareness about different definitions and business arrangements are mentioned. A precise examination of the current market condition and future prospects have been clearly stated in the report, which are followed by prime strategical executions anticipated across the FTTH Equipment market during 2019 2025. Furthermore, the study offers separate sections to drop light on item advancements, associations, as well as mergers and acquisitions. The contribution by various market players and their product offerings is also part of this intelligent report, diligently stated in the later portion.
The report discreetly mentions the prime companies operating in the FTTH Equipment market, together with production and revenue statistics, followed by recent developments. Some of the major companies included in the report are China Telecom, China Mobile Ltd., Verizon Communications Inc., AT&T Inc., Vodafone Group Plc., Nippon Telegraph & Telephone Corporation, Softbank Group Corp, Deutsche Telekom AG, Telefonica S.A., America Movil.
2. Innovative Opportunities, Strength, Weakness, Threats Strengths
Experienced Management With experience of more than 20 plus years in the industry, Innovative has an experienced management and promoter team which leads the operational decisions for the Company.
Wide range of innovative offerings As our name itself suggests, our primary focus on introducing innovative products since our inception. It has aided us to grow ourselves over the past 2 decades. We continue to add newer innovative products in the market expanding our product portfolio.
Strong clientele We have been associated with Top developers in Maharashtra who executes premium residential projects and complexes. Such clientele has aided us to keep on adding newer projects under our basket with such clients.
Strong Business Model Our Strength is not just procuring, installing and commissioning the security system but to offer strong after sale service. We are being preferred by the residential developers because of our trained staff for after sale service to promptly respond to customers.
Limited geographical presence Since our inception, we have to limit our operations to Maharashtra region for all our projects. Due to limited staff availability with expertise, we have not been able to expand our service and offerings to other states within the country. But we are keen to forego it & expand. Planning is underway
Limited marketing activity Our Company has already developed few of the products which are innovative and of wide-use, however, owing to our limited marketing activity we were unable to commercially launch these products in the market. But we have strategy to overcome it.
Telecom Solution Innovative has on the foreground to provide High speed Internet keeping in view the current scenario of "Work from Home" for which
High Speed Internet is a must for seamless connection.
Acceptance of security products in residential projects With growing lifestyle and luxury along with increased affordability of the security products, many large projects have started offering security services to the home-buyers. Such service offering increases demand for our products and services which have been into the business for more than 2 decades.
Increased focus on women, children and senior citizens safety across the country Unfortunate happenings over past few years have led to realization of increased focus on safety and security of our citizens, primarily, women, children and senior citizens. Innovative products serving the need of the country with a nominal price tag will increase the demand of our products. Even government at various levels are keen to use such technologies.
Competition from established players There are few established players in the organised sector which are larger in size and experience in security service and equipment business. They somewhat have a capability to diminish or sometimes finish the competitiveness. Their market reach and network are stronger than our Company which may possess a potential threat to our business. (Can be even favourable to them & hurting to us).
Under-performance of the security equipment Much of our success depends on the quality of our products and the level of services we provide. Buyers expect durability of the products which are hassle-free requiring less maintenance. Under-performance of security equipment will adversely impact our brand image and hence our market acceptability. But at the same time we would like to assert that marginally many things are improving at a pace.
Growing demand of smart-phones We have launched basic feature mobiles under the brand name of Inoyo to cater the Tier-2 and Tier-3 markets. However, with growing acceptance and demand of smart phones, our product may not be successful enough to bring an operational profit. However, we will be launching high end smart phones shortly. Scouting is underway.
3. Future Outlook / Strategies:
In the Coming 5 years Plan (what next)
Utility companies are continuously employing new and old strategies to overcome these industry challenges and remain relevant in the changing energy marketplace. Adapting to new rules/strategies, innovating new offerings and investing in cost-saving technologies are just a few avenues for transforming challenges into opportunities
Higher customer satisfaction for its varied services and the new launched products that we introduce help our customers meet their requirements.
To increase the revenue by multifold we have started focusing more on Government Projects. To supply and execute CCTV, FTTH and solar products.
We have now started focusing on AI (Artificial Intelligence) based CCTV and Home Automation products, which are expected to be big growth sectors in the near future.
We are also exploring QR based Audio/Video solutions for security applications.
We do the designing as per the systems Requirements for optimum use of the equipment. Value engineering in projects is our forte with the aim of providing correct solutions and use of the equipment.
We are also targeting the export market and potential for our products.
4. Risks and concerns, internal control systems and their adequacy
The Company is engaged in the business of import of mobile phones and other materials, which is associated with normal business risk as well as the imbalance of demand-supply of products in the domestic as well as international market. We are subject to foreign currency exchange rate fluctuations which could have a material impact on our results of operations and financial conditions. The Company has a well-defined Policy for Risk Mitigation on foreign exchange by adopting hedging strategies. Global as well as Indian economic and political factors that are beyond our control, influence forecasts and may directly affect our business operations.
The Company has a Risk Management Policy and adequate Internal Control System in place. The main objective of this Policy is to ensure sustainable business growth with stability and to promote a pro-active approach in reporting, evaluating and resolving risks associated with the Companys business. In order to achieve the key objective, this Policy establishes a structured and disciplined approach to Risk Management; in order to guide decisions on risk related issues. Internal Control System is commensurate with the size, scale and complexity of its operations. The Company continuously reviews its various types of regulatory, financial, operational, environmental and other business risks. There are adequate systems to ensure compliance of all various statutory and regulatory requirements and review the same from time to time and to take appropriate actions from time to time.
5. Discussion on financial performance with respect to operational performance
During the year your company has earned total income of Rs. 622.35 Lakhs (Previous year Rs. 439.60 Lakhs). After all the financial adjustments, the company has suffered a net loss after tax of Rs. 493.88 Lakhs.
6. Material developments in 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. Many initiatives were taken to support business through organizational efficiency, process change support and various employee engagement programs which has helped the organization to achieve higher productivity level. A significant effort has also been undertaken to develop leadership as well as technical/ functional capabilities in order to meet future talent requirement.
As on March 31, 2023 we have 34 employees on payroll. Company is committed to provide necessary training, skills enhancements / conducts development programmes, Time management training to in script required skills within the employees. The management of the Company enjoys cordial positive relations with its employees at all levels. Timely opportunities are regularly offered at Par.