We are evolving our organization so that we can move rapidly to take advantage ofchanging opportunities in the marketplace.
The year under review was a challenging one not just for us but for the entireindustry. Just as the Indian economy was settling down after the disruption caused bydemonetization the government announced the introduction of the long awaited Goods &Services Tax (GST) from 1st July 2017. The new tax regime termed by many as India'sbiggest tax reform since independence is founded on the concept of one nation onemarket one tax'. As expected there were teething problems and the implementation wentthrough after several rounds of modification and rationalization.
But I do believe that in the long run this would be a game changer for the Indianeconomy and the government deserves to be applauded forits wisdom and courage inimplementing this. GST will boost competitiveness and the performance of India'smanufacturing sector. The compliance burden will ease and logistics e-commerce IT ITeSTelecommunications startups will all benefit in good measure. It will also lead tolesser tax evasion.
The introduction of GST however had a significant short-term impact on the top lineof most companies. In our case too our consolidated revenues from operations declinedfrom Rs 10373.82 lakhs in FY 2017 to
Rs 9742.33 lakhs in FY 2018. The Company posted a Consolidated Loss after Tax of
Rs 322.27 lakhs as compared to Consolidated Loss after Tax of Rs 971.25 lakhs duringthe previous year.
The other significant feature of the year was consolidation. As you are aware thecompany had undertaken a major restructuring exercise where by Smartlink Holdings Limitedbecame a holding company along with three subsidiaries viz. Digisol Systems Ltd.(DIGISOL) Synegra EMS Ltd (SYNEGRA) and Telesmart SCS Ltd (TELESMART). This restructuringexercise was carried out to adequately focus on each of the businesses of the company.Smartlink Network Systems Ltd. has been rechristened as Smartlink Holdings Ltd. (witheffect from 18th April 2018) and has obtained the certificate of registration as aNon-Banking Financial Company (non accepting deposits) on 2nd May 2018.
Let me explain to you the Main Activities of these three subsidiaries - Digisol SystemsLtd. is a Products company with sales marketing & support in Active & Passiverange of DIGISOL BRAND Networking Products. The DIGISOL brand has been well establishedsince 2010 and commands much respect in the marketplace.
During the year we streamlined operations of DIGISOL and it now has excellentEngineering Teams in sourcing testing & supporting full range of products in Active& Passive products. During the year under review DIGISOL introduced many new productsin the active range like GPON wireless AC routers industrial switches and a range ofsolderless Keystone and patch panels in its passive range. DIGISOL will continue tobroaden its offerings to capture expanding market opportunities while continuing totransform itself to serve the needs of its customers and building its brand.
SYNEGRA is active networking and electronic products manufacturing Company havingexcellent components sourcing Team. It has SMT lines Assembly lines Testing lines gearedup to manufacture products like Routers to high end Switching Products. Currently itsupplies products to DIGISOL Systems and going forward will be manufacturing for otherbrand companies in India and abroad.
TELESMART is Passive Networking Products manufacturing Company in copper & fiber.It has exposure in Technology having partner with more than 2 decades of experience. Wehave developed locally solder less Keystone and 90 Degree Patch Panel and have excellentexport potential. It has full Assembly lines in Copper and Fiber. Many of the products aretooled up for manufacturing from local vendors. Presently products are marketed by DIGISOLSystems Ltd. going forward will be exported outside India.
The Government's Make in India' initiative augurs well for SYNEGRA and TELESMARTand we look forward for high growth.
The three subsidiaries have distinct identities and a sharp focus in their respectivebusinesses. This will enable us to concentrate better on manufacturing as well asmarketing of products and solutions for our customers. It will also enable each subsidiaryto be innovative and have its own strategy in areas like product development.
I am confident that our new structure will improve our competitive position andincrease our efficiency. We are evolving our organizationso that we can move rapidly totake advantage of changing opportunities in the marketplace.
We continue to maintain our commitment to be a responsible company and a good corporatecitizen and implement sustainable practices and support educational environment and otherinitiatives.
I must express my sincere thanks to our shareholders for the confidence reposed in usand to my colleagues on the Board for their continued guidance. I am also grateful to ourcustomers for giving us an opportunity to serve to the employees of Smartlink and itsthree subsidiaries for their unstinted dedication and all our stakeholders for their wholehearted support in our endeavours.