power one micro systems pvt ltd Management discussions

POWER ONE MICRO SYSTEMS PRIVATE LIMITED ANNUAL REPORT 2005-2006 MANAGEMENT DISCUSSION AND ANALYSIS OPERATIONS: During the year under consideration, the company had achieved a turnover of Rs.2886.92 (1798.60) Lakhs from the business of manufacturing and trading in Electronic uninterruptible Power Supply Systems (UPS) and Stabilizers and earned a Profit of Rs. 62.78 (27.40) Lakhs after tax. During the year under review, there was impressive growth both in terms of turnover and operating result of the company. On introduction of Value Added Tax in almost all parts of the country, which resulted in uniform rate of Value Added Tax and also tax rates on Electronic UPS has been reduced to 4% from 18.4%. Uniform rate of tax all over the country, helped the company to compete with other players in the field. which resulted in getting major orders from Government Departments and Public Sector undertakings. Therefore, during the year under review the company had achieved a considerable growth in terms of turnover and profitability and it is expected to continue during the current year also. As in the earlier years, the company is continued to import major components and batteries from outside country, to overcome the competition in the field. The UPS & Stabilizers manufactured by the company is continued to be well accepted by the Customers from all sectors like Government, Semi-Government and Private Sectors. During the current financial year the Company is getting regular orders from Government Departments and other customers and Company is expecting further improvements in the working results during the current financial year 2006-2007. With all infrastructure facilities and in house Research and Development department, the company is in the process of development and introduction of new technology in manufacturing of Electronic UPS and allied products.