Integra Switchgear Ltd Management Discussions.

1) Industry Structure and Developments:

Integra Switchgears Limited is engaged in the manufacture of Electrical Apparatus for Switches (Including Relays) as per the requirement/specifications of its various clients. The company is manufacturing and supplying of Apparatus for Switches (Including Relays) meeting the standards of quality, design and specifications of its clients. The company has been manufacturing the various categories of switches including relays. The growth of the company is mainly linked to the growth of the Electrical Materials and Spare parts industry.

Indian Electrical Materials and Spare parts Industry

The Indian Electrical Materials and Spare parts have observed strong growth over the past few years. Economic liberalization and rising income of middle class population have had a positive impact on consumer spending and consumption in both rural and urban areas. Indian consumer now spends a significant proportion of various electrical materials and spare parts.

Various Electrical Materials and Spare parts have also seen strong demand as standard of living of consumers and life style increased from that it was earlier ten years.

Developments:

Create new markets quickly through products based on technology

Enhance growth by reaching new customers, deepening the customer experience and allowing them to dynamically mange pricing Increase profitability by altering operating cost structures through greater process automation Adopt business models that increase asset efficiency and long-term competitiveness

2) Opportunities and Threats:

Opportunities: New elements involving new ways with understanding clients and exploring new markets and business models shall open new opportunities for us to build strategic relationship with clients. Our reliability and efficiency of the equipment and effective service are key factors for success in this highly competitive industry.

Threats: The Company has developed and implemented a risk management framework that includes identification of elements of risk, if any, which in the opinion of the Board may threaten the existence of the company and by adopting various factors such as risk identification, impact assessment, risk evaluation, risk reporting, risk disclosures, risk mitigation and reporting.

3) Segment-wise or product-wise performance:

The Company has only one segment of manufacturing food processing instruments / equipments.

4) Outlook:

The outlook for business is positive as the company continue to remain focused on risk management and mitigation.

Total turnover during the year 2017-18 increased by Rs. 1.36 lac (73.91%) compared to previous year 2016-17 and there is loss of Rs. 5.25 lac (after tax) during the year 2017-18 compared to loss of Rs. 18.82 lac (after tax) in previous year 2016-17.

5) Risks and concerns:

Commodity Price Risk: Risk of price fluctuation on basic raw materials used in the process of manufacturing.

Uncertain global economic environment – slow growth in global economy: Impact on demand.

Interest Rate Risk: Any increase in interest rate can affect the finance cost

Human Resources Risk: Your Companys ability to deliver value is dependent on its ability to attract, retain and nurture talent. Attrition and non-availability of the required talent resource can affect the overall performance of the Company

Competition Risk: Every company is always exposed to competition risk.

Compliance Risk: Increasing regulatory Requirements: Any default can attract penal provisions

Industrial Safety, Employee Health and Safety Risk: The electrical engineering industry is exposed to accidents and injury risk due to human negligence.

6) Internal Control Systems

The Company has strengthened its internal control and audit aspects by appointing outside agency for internal audit of certain important aspects of operations, apart from usual transactional verifications. There are adequate checks and controls to ensure compliance of various statutes.

7) Financial performance

Total turnover during the year 2017-18 increased by Rs. 1.36 lac (73.91%) compared to previous year 2016-17 and there is loss of Rs. 5.25 lac (after tax) during the year 2017-18 compared to loss of Rs. 18.82 lac (after tax) in previous year 2016-17.

8) Human resource

The Company considers its employees as its valuable assets. The Company focuses on building an organisation through induction and development of talent to meet current and future needs. During the year under review, the Company continued to have cordial and harmonious relations with its employees.

By Order of the Board of Directors
Jamnadas Hirachand Vora Jagesh Mahendrabhai Doshi
Director Director
DIN: 00258809 DIN: 00259347
Dated : 28.05.2018
Place : Regd. Office
10, GIDC, Por Ramangamdi,
Dist. Vadodara – 391 243