photoquip india ltd Management discussions

* FORWARD-LOOKING STATEMENTS

This report contains forward-looking statements based on certain assumptions and expectations of future events. The Company, therefore, cannot guarantee that these assumptions and expectations are accurate or will be realized. The Companys actual results, performance or achievements can thus differ from those projected in any such forward-looking statements. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, based on any subsequent developments, information or events.

* INDUSTRY STRUCTURE AND DEVELOPMENTS

Indias GDP grew 8.7% in FY 2022 after contracting 6.6% during the previous fiscal on account of the impact of the COVID-19 pandemic and subsequent nationwide lockdowns to check the spread of coronavirus and the spread of Omicron. It pointed out that the global environment still remains uncertain, and that the projection is based on the assumption there will be no further debilitating pandemic-related economic disruption, a normal monsoon, an oil price projection at $70-75 per barrel (as opposed to the current price of $90), easing of global supply chain disruptions and more.

At Company level, going forward, it is our conviction that the transparent policies along with the stringent statutory compliances will propel the organized sector towards growth. The traditionally fundamentally strong character of the Indian economy would continue to operate in the future.

* BUSINESS OVERVIEW

The financial highlights are given below: -

Rs. In Lacs

Particulars	2021-22	2020-21
Revenue from sale of products (Exports)	NIl	281.27
Revenue from sale of stock in trade (Domestic sale)	1,224.72	814.71
Other operating revenue	16.63	39.02
Total Revenue from Operations	1241.35	1,135.00
Add: Other Income	24.70	244.98
Total Income from Operations	1266.05	1,379.98
Provision for Taxation	NIL	NIL
Deferred Tax Liability / (Asset)	25.83	77.74
Profit / (Loss) after tax	(234.34)	(219.18)
Paid-up equity Share Capital as on March 31, 2022	480.08	480.08

* MARKETING

The Company has a well-established pan-India dealer network catering to the Indian photography market. It continues to maintain a strong presence in various industry-related exhibitions to reach out to mass target audiences. It has strategic tie-ups with industry-renowned photographers / training institutes to conduct imaging / photography workshops pan-India. It also conducts service camps across India at strategic locations to cater to the after-sales segment. The Company is active on the social media platforms including Facebook and Instagram.

* SWOT ANALYSIS

a) STRENGTHS

Our core strength continues to be our pioneering presence in this field of still photography over the last 6 decades. Add to it, adoption and seamless integration of technological advancements in the field through a competent and committed workforce with extensive industry experience, which give us the required edge over competition.

b) OPPORTUNITIES

The photographic market is rapidly maturing in India and therein lies an opportunity for the Company to capitalize. The Company has strong Research and Development base and uses cutting edge technology in developing digital studio flashlights and other products.

The Company is making forays into the motion / video photography market with the introduction of industry-specific products.

c) THREATS / WEAKNESSES

Catering to a single export buyer continues to be a perceived weakness. Constant fluctuations in foreign exchange and global recession pose a continued threat to the Companys operations.

* INTERNAL CONTROL

The Company has adequate internal control system commensurate with the size of its operations. Adequate records and documents are maintained as required by applicable laws. The Companys Audit Committee reviews the internal control system. During the year such controls were tested and no reportable material weaknesses in the design or operations were observed.

* SEGMENTWISE REPORTING

During the year under review, Company has only one primary segment i.e. Digital Studio Flash-Lights and Photographic Accessories. Two secondary segments have been identified based on the geographical locations of customers i.e. domestic and exports.

? OUTLOOK

The Company maintains a positive outlook for the future. It also aims to make a mark in market of motion / video photography.

? RISKS AND CONCERNS

Risk is an integral part of any business. As a responsible management, the Companys principal endeavor is to minimize risks.

? CAUTIONARY STATEMENT

Statement in this Managements Discussion and Analysis detailing the Companys objectives, projections, estimates, estimates, expectations or predictions are "forward-looking statements" within the meaning of applicable laws and regulations. Actual results could differ materially from what has been envisaged. Important factors that could make a difference to the Companys operations include overall global and Indian demand-supply conditions across industries, cyclical demand in the Companys principal markets, changes in Government regulations, tax regimes, economic developments within India and the countries with which the Company conducts business and such other factors.