Photoquip India Ltd Management Discussions.

FORWARD-LOOKING STATEMENTS

This report contains forward-looking statements based on certain assumptions and expectations offuture 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

The Company manufactures, exports and trades in Digital Studio Flash Lights and Photographic Accessories and similar products. It is an OEM for Elinchrom SA, a Company based in Switzerland and a renowned named in the global photographic industry. It is an Authorised Distributor of Elinchromproducts in India since 1986. The Company, over the decades, has been foreseeing industry requirement and accordingly catering to the needs of the photographic fraternity. We continue to be driven by the mission of equipping every photo studio with the best photography experience.

The GDP outlook for 2019-20 is 7%.Major challenges include subdued manufacturing, lower exports and lower capital expenditure. However, continued thrust on industry initiatives such as Make in India, Invest India and Start-up India are expected to improve the ease of doing business and provide a boost to manufacturing sector in the country.

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 fuel growth opportunities.

BUSINESS OVERVIEW

The financial highlights are given below: -

Rs. In Lacs
Particulars FY 2018-19 FY 2017-18
Revenue from sale of products (Exports) 2,333.90 2,720.82
Revenue from sale of stock in trade (Domestic sale) 1,415.15 1,562.63
Other operating revenue 47.09 28.80
Total Revenue from Operations 3,796.14 4,312.25
Add: Other Income 32.93 63.58
Total Income from Operations 3,829.07 4,375.83
Provision for Taxation Nil Nil
Deferred Tax Liability / (Asset) 74.80 (43.27)
Taxes of Earlier years 0 1.59
Profit / (Loss) after tax (134.36) (63.89)
Paid-up equity Share Capital as on 31st March, 2018 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.

SWOT ANALYSIS

a) STRENGTHS

Our core strength continues to be our pioneering presence in this field of still photography overthe 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 development of digital studio flash lights 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 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 the hitherto unexplored market of motion / video photography.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

The Company organizes various developmental programs for its employees relating to improvement of behavioral / managerial and core competencies. These programs help employees to keep them updated with the latest developments and changes happening in the field of operations, technology, HR, finance etc.

NEW PRODUCTS

Your Company is committed towards equipping the Indian photo-imaging industry with exceptional quality, cutting-edge products. During the year under review, the Company has underlined the following new product launches:

PROBLITZ

Problitz DC400 - a battery powered TTL monolight and a digital TTL Transmitter Problitz TX-BLT. The product is compatible with Canon, Sony, Nikon and Fuji cameras.

KLIK

KLIK Speed flash FL40 and FL60. The range is compatible will all leading DSLR brands including Canon, Nikon and Sony.

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.