Captain Polyplast Ltd Management Discussions

1. INDUSTRY OUTLOOK:

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

2. OPPORTUNITIES AND THREATS

The company envisaged remarkable growth over previous years. Companys turn over shows increasing trends due to expansion. Government is providing various incentives to agricultural industries. At the same time, there is intense price pressure from the competitors and international financial crisis. Due to two and half decades experience in manufacturing and international marketing, the Customers also growing rapidly. We have always maintained high quality standard and also make a good track record.

3. INITIATIVES:

The initiatives are being taken by the Company for improving the quality standards and reduction of costs at appropriate level. New machineries were 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 farmers and also providing them quality services and knowledge.

4. RISKS AND CONCERNS:

Major fluctuations 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. 2022-2023 are as follows: -

A. PROFIT BEFORE TAX (PBT)

Profit before tax increased by 100.97% as compared to previous year.

B. PROFIT AFTER TAX (PAT)

The net profit after tax of the company increased by 99.61% with compared to previous year.

C. EARNINGS PER SHARE (EPS)

EPS in the fiscal 2022-23 is at 1.08 as compared to EPS of 0.55 in fiscal 2021-22.

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. PERFORMANCE SNAPSHOT:

The standalone financial highlights for FY 2022-23 are as follows: (Rs in Lakhs)

Particulars	FY 2022-23	FY 2021-22	Variance
Revenue from operations	22748.42	18,516.85	21.55%
Profit before Tax- Continued Operation	766.06	381.17	100.97%
Net Profit / (Loss) for the period from Continuing & Discontinued Operations	550.10	278.47	99.61%

Key Financial Ratios

Ratios	FY 2022-	FY 2021-22	Change%	REASON FOR CHANGE
Debtors Turnover	1.96	1.64	19	Profit margin improved due to increase in PMKSY benchmark prices, decrease in raw material costs and better absorption of fixed costs.
Inventory Turnover	4.26	3.99	7
Debt Service Coverage Ratio	1.47	1.26	17
Current Ratio	1.53	1.58	-3
Debt Equity Ratio	1.16	1.31	-11
Operating Profit Margin %	22.06	21.76	0.29
Net Profit Margin %	3.41	2.08	1.33
Return on equity %	0.18	0.15	22

8. 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.

9. 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.

10. 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.

11. 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 segment wise performance is forming part of audit report of the company.

REGISTERED OFFICE: FOR AND ON BEHALF OF THE BOARD OF DIRECTORS

UL25, ROYAL COMPLEX,

BHUTKHANA CHOWK DHEBAR ROAD,

RAJKOT.

SD/-

RAMESHBHAI D KHICHADIA MANAGING DIRECTOR DIN NO.: 00087859

DATE: 25.05.2023 PLACE: RAJKOT