Captain Pipes Ltd Management Discussions.

1. INDUSTRYOUTLOOK:

During the period under review economy was passing through very crucial stage. There were tremendous potential growth of these industries but due to covid -19 pandemic and its effect on economy, government policies, plus government regulations current period is very hard for economy. As ours is the agriculture based products, there is lot of potential demand for the next years.

2. OPPORTUNITIES ANDTHREATS

The company envisaged remarkable growth over previous years. Government is providing various incentives under TUFs. The Customers also growing rapidly. At the same time, there is intense price pressure from the competitors and international financial crisis.

3. INITIATIVES:

The initiatives are being taken by the Company for improving the quality standards and reduction of costs at appropriate level. Machineries were properly installed to provide better result and to cope up with changing requirement of the industry. The employees at all levels are being made aware of the changing conditions and the challenges of the open market conditions and to train the personnel to tackle the difficult situations which will improve the overall productivity, profitability. Also initiatives were taken by company to direct touch with customers and also providing them quality services and knowledge.

4. RISKS ANDCONCERNS:

Fluctuation in the raw material price and stringent market conditions can affect the companys performance. Product risk, risk of fluctuation in the raw material price, government policies, and financial risk can affect the company, which requires continuous follow up.

5. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONALPERFORMANCE

Significant financial highlights in F.Y. 2020-2021 are as follows:-

A. PROFIT BEFORE TAX (PBT)

During the fiscal 2020-21, the Company has reported a PBT of Rs. 44.48 lakhs as compared to the previous years figure of Rs. 44.87 lakhs, Profit before tax decrease by 0.87% as compared to previous year.

B. PROFIT AFTER TAX (PAT)

During the fiscal 2020-21, the Company has reported a PAT of Rs. 27.72 lakhs when compared to the previous years figure of Rs. 38.36 lakhs, the net profit after tax of the company decreased by 27.74% with compared to previous year.

C. EARNINGS PER SHARE (EPS)

EPS in the fiscal2020-21 is at 0.67 as compared to EPS of 0.92 in fiscal 2019-20.

6. INTERNAL CONTROLSYSTEM:

Your Company has a proper and adequate system of internal controls, to ensure the safeguarding of assets and their usage, maintenance of proper records, adequacy and reliability of operational information. The internal control is supplemented by an extensive audit by internal and external audit teams and periodic review by the top management, Audit Committee and Board of Directors.

7. HUMANRESOURCES:

In a competitive economy, the proper utilization of human resources plays a crucial role. It begins with best practices in recruiting people and moves through learning and development, engagement, employee feedback and rewards and recognition. Towards this, your Company took various initiatives and has maintained healthy and harmonious industrial relations at all locations. The dedication and hard work of productive and dynamic goal oriented team is the key factor to the success of your Company. We believe that hiring the right personnel and proper retaining is key to this success. To keep the Company and its human resource competitive, we organized various training programs and experts were engaged to train the employees at various levels. This active process of learning has allowed employees enhance competence and motivation.

8. FUTUREPLAN:

As a long term planning strategy, company is planning to operate on a larger scale and achieve the highest portion of market demand of its products. Promoters are working very hard to lead company to new horizons and giving better results.