"Driving Innovation' is not just the tag line in the logo of MIC ElectronicsLimited. It has been the driving force behind all the endeavors of the company over thelast three decades.
Development of Smart' street lighting products solar powered street lights withintegrated advanced battery technologies and non metal casing material concept proving ofSmart' street lights in New Delhi and Hyderabad development of double layeredimages in the 3D Holographic systems domain can be stated to be path breaking developmentefforts of your company in the year under review. Your company has also been awardedpatents for LED TV and LED Portable Lantern in addition to LED
DigiPoster in the financial year 2016-17. MIC's work in the area of LED street lightingin Andhra Pradesh has helped position the state to become one of the top ranking states inthe Country in the conversion of traditional street lighting to LED street lighting. Usercommunities in the state of Uttar Pradesh have expressed genuine happiness about thequality and efficiency of your company's solar powered street lights deployed in largenumbers in that state as part of the Atal Jyoti Yojana. The performance and elegance ofMIC's grid based and solar street lights has attracted the attention of several countriesand active negotiations are taking place with their representatives for exporting theseproducts to those countries.
The programmes being taken up in the country in the areas of Smart Cities NetworkedDisplay Systems LED street lighting projects and Rural lighting programmes with solarpowered street lighting products offer good business opportunities for your company in theyears to come. The country's recent and renewed emphasis on renewable energy sources andenergy conservation specifically smart grid and smart meter efforts as well as electrictransportation offer opportunities for the company to participate in these initiativesbuilding on the company's systems integration and machine to machine communicationsstrengths.
The procedures involved and the payment conditions associated with a few large lightingprojects taken up by your company in different states of the Country have led to seriouscash-flow constraints over the last couple of years. Concentrated and intensive effortsexercised by senior management have begun the process to help resolve these issues.However it is proving to be a time consuming process. The customer organizationrecognizing the ground realities has significantly modified its purchase processes whichwill. enable a shorter payment cycle improving your company's cash management ability andthe attendant operational flexibility.
MIC is endeavoring to change its business from being a predominantly Government agencybased one to a Business to Business' and Business to Customer' based businesswith the objective of serving a larger market place as well as diversifying its risk awayfrom being largely dependent on one sector or major customer. Management expects that thiswill also result in a more robust financial and operational capability of the company.
Important pilot programmes have already been launched in association with leading MultiNational companies and Indian companies in the area of display projects. These projectsposition your company well to play an important role in smart city initiatives as well asthe retail networked display segments. The company has also begun efforts to protect itsIntellectual Property (IP) the LED TV and Digital poster patents in particular. Thecompany has first publicized this through an advertisement in a national newspaperdescribing the exclusive nature of the patent rights and indicating to manufacturerssuppliers and users that any use of such devices should only happen through an explicitarrangement with your company. It has also sent notices or otherwise indicated to majorbuyers that they should not be using such products without an explicit arrangement withyour company.
The company continues to make significant progress in its efforts to become a debt freecompany. Some major initiatives were taken in the course of the year in easing thecompany's debt position. With the active cooperation of various stakeholders involved suchas financial institutions individual investors and suppliers the situation has improvedconsiderably. Management continues to work at identifying further means to achieve thedebt free goal. Operations improvement efforts also continue to be implemented throughpursuit of better lower cost production sources reduction or disposal of work in processinventories and through organizational restructuring and resizing efforts.
MIC's pioneering efforts in the field of true colour LED display systems and3D-Holographic systems will enable to company exploit their potential as effectiveinformation dissemination devices in several application areas going beyond eventcoverage advertisements and entertainment. Focused efforts and planning are underway toimprove penetration and sales in these arenas.
The company is definitely on the path to recovery from the difficult times experiencedin the past few years. Sustained focus and effort will continue to be made to reachtargeted goals. We began this report citing our tagline of "Driving Innovation".Coming out of these difficult times this has never been truer. Our future growth andsuccess will depend on our embracing innovative approaches to management markets andtechnologies. Management with your support is motivated and energized to not only keepthis focus but also to generate the additional resources and capabilities required tocapture the many market opportunities being presented to the company.
Thanking you all for the continued support and with best wishes
| ||With best wishes |
| ||Sd/- |
| ||Dr. M. V. Ramana Rao |
|Place : Hyderabad ||( Managing Director) |
|Date : 04.09.2017 ||(DIN : 00010301) |