captain pipes ltd profit loss Management discussions

1. I ndustry Outlook :

During the period under review economy was growing very fast. There were tremendous poten al growth of these industries also pandemic situa on is under control and industries are back to work on full pace. As ours is the agriculture based products, there is lot of poten al demand for the next years.

2. Opportuni es And Threats :

The company envisaged remarkable growth over previous years especially in the year 2022-23. Government is providing various incen ves to agricultural industries. The Customers also growing rapidly. At the same me, there is intense price pressure from the compe tors and interna onal financial crisis.

3. Ini a ves :

The inima ves are being taken by the Company for improving the quality standards and reduc on of costs at appropriate level. Machineries were properly installed to provide beer result and to cope up with changing requirement of the industry. The employees at all levels are being made aware of the changing condi ons and the challenges of the open market condi ons and to train the personnel to tackle the di cult situa ons which will improve the overall produc vity, pro tability. Also inima ves were taken by company to direct touch with customers and also providing them quality services and knowledge.

4. Risks And Concerns :

Fluctua on in the raw material price and stringent market condi ons can affect the companys performance. Product risk, risk of uctua on in the raw material price, government policies, and financial risk can affect the company, which requires con nuous follow up.

5. Discussion On Financial Performance With Respect To Opera onal Performance :

*A.During the year under review company has total revenue of Rs.8584.44 lakhs as against the previous year turnover of Rs. 8297.84 lakhs which shows increase of 3.45% in comparison with the previous year. Pro t before tax decreased in compare to previous year , as there was extra ordinary item in previous year profit , which is not in current year . The net profit aer tax of the company is also decreased as compared to previous year . If we compare the PAT without considering extra ordinary items of previous year then there is increase of 159.11% in PAT in f.y. 2022-23

6. Performance Snapshot:

Significant financial highlights in F.Y. 2021-2022 are as follows:-

Par culars

FY 2022-23 FY 2021-22 Variance
Revenue from opera ons 8584.44 8298.10 increase by 3.45%
Pro t before Tax - Con nued Opera on 249.22 601.30 *As per above para
Net Pro t / (Loss) for the period from 181.41 513.16 *As per above para
Con nuing & Discon nued Opera ons

Key Financial Ra os

Ra os

FY 2022-23

FY 2021-22 Change %


Debtors Turnover


9.58 -14.98

In current year, Trade receivables have increased substan ally as compared to previous year and sales has not increased substan ally. Thus, Ra o has decreased

Inventory Turnover


8.40 -1.72

There is substan al increase in average stock held as a result of big amount of closing stock in previous year. Thus, the ra o has changed

Debt-Service Coverage Ra o


1.71 -1.65

This ra o has shown decrease as a result of increase in debt repayment and rise in profit as compared to last year

Current Ra o

2.18 1.58 38.10 Although the current assets are decreased as
compared to last year, Current liabili0es are reduced
substan ally due to repayment of creditors and
current liabili0es and Bank OD Respecrvely.

Debt Equity Ra o

0.09 0.18 -48.59

The reason for change in the Debt-equity ra o is reduc on in debt as a result of repayment of Bank OD and compleron of term of certain loans and the receipt of share warrant applica on money resul ng into Rise in Equity

Opera ng Pro t Margin %

10.08 7.24 39.23

On account of decrease in deprecia on and nancial cost and also op mum u lisa on of stock.

Net Pro t Margin % Pro t/Revenue*100

2.91 6.20 -53.06

As compared to previous year there is no extra ordinary income.

Return on Capital Employed %

0.17 0.13 26.39

Compara vely, Pro t has increased due to higher sales than last year and also shareholders equity has increased due to receipt of share warrant money

7. Internal Control System :

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 opera_onal informa_on. The internal control is supplemented by an extensive audit by internal and external audit teams and periodic review by the top management, Audit Commiuee and Board of Directors.

Audit Commiuee also seeks views of the statutory auditors on the adequacy of internal control systems in the Company. In compliance with Sec_on 143(3)(i) of the Act, the Statutory Auditors have issued an unmodi ed report on the Internal Financial Controls over Financial Repor_ng which forms a part of the Independent Auditors Report also forming part of this Annual Report.

8. Human Resources :

In a compe rve economy, the proper u liza on of human resources plays a crucial role. It begins with best prac ces in recruiung people and moves through learning and development, engagement, employee feedback and rewards and recogni on. Towards this, your Company took various inima ves and has maintained healthy and harmonious industrial rela ons at all loca ons. The dedica on and hard work of produc ve 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 compe rve, we organized various training programs and experts were engaged to train the employees at various levels. This ac ve process of learning has allowed employees enhance competence and mo va on.

9. Future Plan :

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

10. Segmentwise & Productwise Performance :

In accordance with Accoun ng Standard-17 “Segment Reporting” issued by the Ins tute of Chartered Accountants of India is not applicable as the Company has mainly one business segment i.e. "manufacturing and selling of UPVC pipes and Cngs". There are no other primary reportable segments. The major and material activities of the company are restricted to only one geographical segment, hence the secondary segment disclosures are also not applicable




SURVEY NO. 257, PLOT NO. 23 TO 28, N.H. NO. 8-B




DATE : 09.05.2023



DIN: 00127947