Captain Polyplast Ltd Management Discussions

1. INDUSTRY OUTLOOK:

During the period under review economy was growing very fast. There were tremendous potential growth of these industries, also pandemic situation is under control and industries are back to work on full pace. As demand for renewable energy rises, CPLs Solar EPC business is poised for growth, particularly with increased adoption of solar pumps in agricultural markets, strengthening its foothold in the green Energy sector.

2. OPPORTUNITIES AND THREATS

The company envisaged remarkable growth over previous as well as in current years. Companys turn over shows increasing trends due to expansion. Government is providing various incentives to agricultural industries. Also company has initiated solar and green house activity, for which also many government assistance is available. At the same time, benefiting from various government programs like PMKUSUM, the company enjoys stable cash flows from its micro-irrigation segment. Additionally, a client base across both public and private sectors ensures ongoing revenue opportunities in evolving markets.

3. INITIATIVES:

The initiatives are being taken by the Company for improving the quality standards and reduction of costs at appropriate level.The upcoming factory near Ahmedabad will enhance production capacity and operational efficiency. Expected to complete by Q2 FY26, this facility will help meet the rising demand and improve profitability. 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 farmers and also providing them quality services and knowledge.

4. RISKS AND CONCERNS:

Major fluctuations in Rupee price value corresponding to 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 OPERATIONAL PERFORMANCE

Significant financial highlights in F.Y. 2024-25 on standalone basis are as follows:-

A. PROFIT BEFORE TAX (PBT)

Profit before tax increased by 75.64% as compared to previous year.

B. PROFIT AFTER TAX (PAT)

The net profit after tax of the company increased by 82.96% with compared to previous year.

C. EARNINGS PER SHARE (EPS)

EPS in the fiscal 2024-25 is at 5.48 as compared to EPS of 3.14 in fiscal 2023-24.

6. 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 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.

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

7. PERFORMANCE SNAPSHOT:

The standalone financial highlights for FY 2024-25 are as follows (Rs. In Lakhs)

Particulars	FY 2024-25	FY 2023-24	Variance
Revenue from operations	28976.99	29770.25	-1.02%
Profit before Tax- Continued Operation	3830.32	2180.69	75.64%
Net Profit / (Loss) for the period from Continuing & Discontinued Operations	3037.94	1660.41	82.96%

Key Financial Ratios

Particulars	CY	PY	Change in %
(a) Current Ratio	2.14	?RIGHT?>1.59	34.56%
(b) Debt-Equity Ratio	0.45	1.10	-58.97%
(c) Debt Service Coverage Ratio	2.07	2.01	3.00%
(d) Return on Equity Ratio	25.40%	20.41%	24.44%
(e) Inventory turnover ratio	7.77	7.48	3.93%
(f) Trade receivables turnover ratio	1.58	2.01	-21.09%
(g) Trade payables turnover ratio	4.43	3.83	15.63%
(h) Net capital turnover ratio	2.58	3.68	-29.85%
(i) Net profit ratio	10.59%	5.64%	87.73%
(j) Return on Capital employed	22.61%	16.84%	34.27%
(k) Return on investment	-1.56%	-29.19%	-94.64%

8. HUMAN RESOURCES:

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.

9. FUTURE PLAN:

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. The upcoming factory near Ahmedabad will enhance production capacity and operational efficiency. Expected to complete by Q2 FY26, this facility will help meet the rising demand and improve profitability

10. SEGMENTWISE & PRODUCTWISE PERFORMANCE

The Groups operating segments are established on the basis of those components of the Group that are evaluated regularly by the Executive Committee (the Chief Operating Decision Maker as defined in Ind AS 108 - Operating Segments), in deciding how to allocate resources and in accordance with Ind AS - 108 - "Operating Segments", the Company has identified its business segment as

Segment-1 : "Manufacturing of Micro Irrigation Systems & Allied Products" and

Segment-2 : "DCA cum CS of Indian Oil Corporation Ltd. (IOCL) - Polymer Business" in assessing performance. These have been identified taking into account nature of products and services, the differing risks and returns and the internal business reporting systems. The accounting policies adopted for segment reporting are in line with the accounting policy of the Company with following additional policies for segment reporting .

The major and material activities of the company are restricted to only one geographical segment i.e. India, hence the secondary segment disclosures are also not applicable. Detailed segmentwise performance is forming part of audit report of the company.

DATE: 10.05.2025	FOR AND ON BEHALF OF THE BOARD OF DIRECTORS
PLACE:RAJKOT	SD/-
	RAMESHBHAI D KHICHADIA
	MANAGING DIRECTOR
	DIN NO.: 00087859