Polysil Irrigation Systems Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENT: GLOBAL ECONOMY

The global micro irrigation system market size was USD 7.59 billion in 2019 and is projected to reach USD 16.83 billion by 2032, exhibiting a CAGR of 6.32% during the forecast period based on our analysis in the existing report. Asia Pacific dominated the micro irrigation system market with a market share of 39.13% in 2019. The growing area under micro irrigation systems across the globe is one of the prominent reasons for the tremendous growth of the market worldwide. Easy mechanization of the micro-irrigation system, their compatibility with wide as well as closed-spaced crops, and various other positive attributes associated with this type of irrigation are aiding the market growth. Moreover, amplified acceptance of t his irrigation technique by commercial property owners, homeowners, and others for landscape developments is expected to drive the micro irrigation system market growth during the foreseeable years. The current global outbreak of COVID-19, followed by lockdowns across several economies is negatively influencing the agriculture industry, especially from the perspective of labor. The crisis is expected to continue in the upcoming months owing to suspended trade across economies at present. There is no doubt that the pandemic will affect the market negatively as well, however, to what extent can only be anticipated once the pandemic ends. Less labor associated with the operation of some of the micro irrigation practices, coupl ed with the availability of automated systems, especially across the developed markets of North America, and Europe is expected to remain the prominent reason for the plausible market stability. However, in developing economies such as India, China, South Africa, Pakistan, and others, the economic slowdown caused due to COVID-19 can impact the number of annual installations of high-priced micro irrigation systems.

(Source: https://www.fortunebusinessinsights.com/micro-irrigation-system-market-102839)

INDIAN ECONOMY

The India micro irrigation systems market growth is set to progress at a CAGR of 10.86% during the forecast period, 2023-2030, and is expected to garner a revenue of $1647.89 million by 2030. India is a prominent global producer of agricultural output and holds the position of the largest market f or agriculture equipment. However, it faces challenges such as a shortage of skilled labor for agriculture and the need to meet the growing food demand of its population. The

Indian markets key pain points include the presence of unstructured small-scale farms, the lack of awareness among farmers, the absence of standards, low per capita productivity, and insufficient skilled labor & infrastructure. As of February 3, 2021, the average penetration of micro irrigation in India stands at 19%, which is significantly lower compared to many other countries. If the country adopts drip irrigation systems for cultivating crops like sugarcane, banana, okra, papaya, and bitt er gourd, it could potentially save up to 60% of the water used. Presently, 27 states in India have less than 30% micro irrigation system coverage, with 23 states having less than 15% coverage. This scenario is evident in Uttar Pradesh, the largest producer of sugarcane, where only 1.5% of the area is under micro irrigation, and Punjab, which has only 1.2% coverage. The India micro irrigation systems market segmentation includes end-user, product type, and crop type. The crop type segment includes orchard crops, forage & grasses, field crops, plantation crops, and other crop types. Field crops, such as corn, cotton, rice, sorghum, soybeans, winter wheat, durum wheat, and spring wheat, can greatly benefit from the implementation of micro irrigation. This modern irrigation technique has proven advantageous for crops like tomatoes and cott on. Given the advancements in durability, component reliability, and design, the cost of adopting micro irrigation systems has decreased, b enefiting small-scale field crop producers. Drip irrigation, widely preferred for field crops like wheat, has shown superior water productivity compared to sprinkler irrigation. Sub-surface drip irrigation also holds substantial growth potential when applied to field crops. The advantages of micro irrigation for field crops are numerous, encompassing water conservation, increased yields, reduced labor costs, and minimal fertilizer usage, among others. Overall, this technology holds promise in boosting crop yields and optimizing wat er usage in agricultural field production. However, it is essential to approach its implementation with careful management and thorough planning to ensure an optimum system design. Whereas plantation crops encompass rapid-growing trees and conifers, specifically tea, coffee, cotton, oilseeds, rubber trees, sugarcane, cocoa, sisal, and fruits. In the context of these crops, the adoption of fertigation, which involves the precise application of fertilizers, water, and essential trace elements through micro irrigation, is on the rise, leading to improved yields. For instance, tea cultivat ion benefits from zinc and copper to enhance color and taste, and fertigation proves instrumental in delivering these vital elements. Notably, among the irrigation methods, drip irrigation is the preferred method for plantation crops over sprinkler irrigation. Some of the leading companies in the India micro irrigation systems market include Mahindra EPC Irrigation Limited, Jain Irrigation Systems Ltd (JISL), Kisan Irrigations & Infrastructure Ltd, etc. Mahindra EPC Irrigation Limited sells and manufactures micro irrigation systems in India. The companys irrigation products include open-well submersible pumps, monoblocks, bore well, rain guns, quick pipe coupling pipes, and sprinkler heads. Also, it offers HDPE pipes, landscape & turf irrigation products, and pipe coils. Additionally, the company offers specialized pipes for gas distribution and water conveyance. It is headquartered in Nashik, India. (Source: https://www.inkwoodresearch.com/reports/india-micro-irrigation-systems-market/?srsltid=AfmBOorO9Lqzzpqw2TFSfBtkOQl267E2eOLE3MGyq-MzYD2SzPjEnv6O)

GROWING AREA UNDER IRRIGATION:

? PMKSY has been formulated amalgamating ongoing schemes viz. Accelerated Irrigation Benefit Programme (AIBP) of the Ministry of Water Resources, River Development & Ganga Rejuvenation (MoWR,RD&GR), Integrated Watershed Management Programme (IWMP) of Department of Land Resources (DoLR) and the On Farm Water Management (OFWM) of Department of Agriculture and Cooperation (DAC).

? Under PMKSY-Per Drop More Crop, from FY16 to FY25 (end of Dec. 2024), Rs. 21,968.75 crore (US$ 2.56 billion) was released to states for the implementation of the PDMC scheme, covering an area of 95.58 lakh hectares.

? Under PMKSY-HKKP- Repair, Renovation and Restoration of water bodies (RRR of water bodies), a total of 395 water bodies have been taken up during 2018-2021.

? Of the wide variety of crops in India, rice and wheat are the most irrigated.

? Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) has been formulated with the vision of extending the coverage of irrigation ‘H ar Khet ko pani and improving water use efficiency ‘More crop per drop in a focused manner with end-to-end solution on source creation, distribution, management,fieldapplicationand extension activities.

? Climate-Smart Farming Practices: This is slowly gaining acceptance with farmers using clean energy sources like solar for irrigation.

(Source: https://www.ibef.org/download/1754309517_Agriculture-May-2025.pdf)

OPPORTUNITIES:

1. Supply Chain Infrastructure:

- Technology driven, integrated supply chains enable entities to reduce inventory and costs, add product value, extend resources, accelerate time to market, expand market, increase pricing for sellers and variety for buyers as well as retain customers

- In order to have a successful supply chain, the Indian Government has sought to involve multiple stakeholders to improve interactions between farmers, processors, distributors and retailers

- The nations processed food industry is expected to grow to US$ 958 billion by 2025 at a compound annual growth rate (CAGR) of 12%. The governments focus is on supply chain related infrastructures like cold storage, abattoirs and food parks.

2. Potential global outsourcing hubs

- Huge opportunity exists for agri input segments like seeds and plant growth nutrients.

- According to the Center for Environment and Agriculture (CENTEGRO) and Crop Care Federation of India (CCFI), India can become the global agricultural hub for other countries, which have harsh weather, scarce labour and lands, and are seeking to outsource their agriculture

3. Farm management services

- Given the importance of agriculture in India, both the government and private players are working to improve the efficiency and productivity of Indian agriculture and exploring how Farming as a Service (FaaS) solutions can play a role.

- FaaS seeks to provide affordable technology solutions for efficient farming. It converts fixed costs into variable costs for farmers, thus making the techniques more affordable for a majority of small farmers. Its services are available on a subscription or pay per use basis in 3 broad categories, which are crucial across the agriculture value chain.

(Source: /https://www.ibef.org/download/1754309517_Agriculture-May-2025.pdf)

COMPETITIVE ADVANTAGE:

? India has access to several natural resources that provides it a competitive advantage in the food processing sector. Due to its diverse agro-climatic conditions, it has a wide-ranging and large raw material base suitable for food processing industries. ? The Government of India targets production of 32 million tonnes of pulses by 2030.

(Source: /https://www.ibef.org/download/1754309517_Agriculture-May-2025.pdf)

THREATS, RISKS AND CHALLENGES:

Finance: The banking sector needs to be more aggressive for funding of the micro-irrigation systems which will help in penetration of the scheme to the great extent. Financial institutions need to be more flexible for offering credit facilities for MI technologies.

Lack of awareness: Many farmers do not know about the use, benefits & implementation of micro irrigation systems. The main reason for the adoption of the drip system is labour problem, & power issues. Awareness and training programs are essential for wid espread adoption.

Technical knowhow: Basically, it is a system & it needs proper design, Installation, operation & maintenance which required technical expertise. The lack of skilled labor and knowledge among farmers can hinder the successful implementation of this technology.

Infrastructure Challenge: In some cases, the existing infrastructure like commonly shared water sources, distribution networks, and storage facilities may not support the implementation of MI systems.

Minimum adoption on Surface Water: In India about 37% of the total irrigated area is on surface water like canals & dams. The adaption of present drip Irrigation at present is mostly on the ground water resources like Well & Bores. There is very minimal adopti on (less than 1% till 2018) of the system on the surface Irrigation like dams & Canals. Hence more & more community irrigation projects are needed to be planned in the coming days. (Source: Ministry of Food & Agriculture, India)

Maintenance & Repair: Ensuring the regular maintenance and prompt repair of MI systems is very important for their max life & effectiveness. However, farmers may face difficulties in accessing timely and affordable maintenance services. Addressing these challenges r equires a comprehensive approach involving government support, educational initiatives, financial mechanisms, and the active involvement of the agricultural community.

Availability of Subsidy: State wise varying subsidy patterns are there. Those states who have adapted project business model have tremendously increased the area under drip Irrigation. In many states the delaying of subsidy, non-availability of subsidy when needed by the farmer are the constraints for the fast development of this technology in India.

OUTLOOK:

We are well-positioned to benefit from the expanding micro-irrigation market. The company caters to the domestic market and also looking for opportunities to export micro-irrigation components to various regions globally. Our focus on innovation, coupled with ongoing government initiatives and the escalating need for water-efficient agriculture, are expected to fuel the growth in the coming years. Despite the positive outlook, challenges remain. The micro-irrigation market is highly competitive, requiring us to constantly innovate and differentiate ourselves. Additionally, while government subsidies are a major driver, ensuring their effective utilization and reaching farmers in remote areas remains a focus. The opportunity lies in the vast untapped potential of the Indian agricultural sector. With the area under micro irrigation still representing a relatively small percentage of the total irrigated land, theres significant room for expansion. Polysil, with its experience and market presence, is well-placed to contribute to this growth and achieve its ambitious market share target. Micro Irrigation Systems Market size was valued at US$ 11.3 billion in 2024 and is expected to reach US$ 22.5 billion by 2031, growing at a significant CAGR of 10.4% from 2025-2031. Micro-irrigation technologies are one of the most successful ways of reducing water waste employed by farmers in many industrialized economies. As a result, prominent firms such as Netafim Ltd offer drip irrigation systems that may be incorporated in pipes, simplifying the installation procedure while increasing agricultural productivity and boosting the livelihood and economic status of millions of smallholder farmers. In the case of specialized greenhouse crops, automatic drip irrigation is critical for maintaining soil moisture.

AGRICULTURE - MARKET OVERVIEW & HIGHLIGHTS OF UNION BUDGET 2025-26:

? In India, agriculture is the primary source of livelihood for ~55% of the population.

? Prime Minister Dhan Dhaanya Krishi Yojana Agri Districts Programme : A partnership with states to launch a programme covering 100 low productivity districts, benefiting 1.7 crore farmers through improved crop intensity, credit access, and productivity.

? Building Rural Prosperity and Resilience: A multi sectoral initiative with states to tackle under employment in agriculture, promoting skilling, investment, technology, and strengthening the rural economy. Phase 1 targets 100 developing agri districts. ? Mission for Aatmanirbharta in Pulses: A six year initiative to enhance domestic production of Tur, Urad, and Masoor, with NAFED and NCCF procuring pulses from farmers for the next four years.

? Comprehensive Programme for Vegetables & Fruits: A state partnered programme focusing on production, supply chain efficiency, processing, and ensuring remunerative prices for farmers. ? Makhana Board in Bihar: Establishment of a dedicated board to improve the production, processing, value addition, and marketi ng of Makhana. ? National Mission on High Yielding Seeds: Aimed at boosting research and development, commercial availability, and distribution of over 100 high yield seed varieties to enhance agricultural productivity.

? Sustainable Fisheries Framework: Introduction of a sustainable fisheries framework focusing on the harnessing of resources from the Indian ? Exclusive Economic Zone and High Seas, with a special emphasis on the Andaman & Nicobar and Lakshadweep Islands.

? Mission for Cotton Productivity: A five year mission to significantly improve cotton farming productivity and sustainability, focusing on extra long staple cotton varieties. ? Enhanced Credit through KCC: The loan limit under the Modified Interest Subvention Scheme increases from Rs. 3 lakh (US$ 3445) to Rs. 5 lakh (US$ 5742) for loans under the Kisan Credit Card (KCC) ? Urea Plant in Assam: A new plant with an annual capacity of 12.7 lakh metric tons will be established at Namrup, Assam. ? The agriculture sectors budget has increased from Rs. 11,915.22 crore (US$ 1.38 billion) in 2008 09 to Rs. 1,22,528.77 crore (U S$ 14.21 billion) in 2024-25. ? Food grain production has surged from 204.6 million tonnes (2004 05) to an estimated 332.3 million tonnes (2023 24).

? The MSP for paddy and wheat has risen significantly from Rs. 850 (US$ 9.86) and Rs. 1,080 (US$ 12.53) per quintal in 2008 09 to Rs. 2,300 (US$26.69) and Rs. 2,425 (US$ 28.14) per quintal in 2023 24, respectively. ? The total MSP paid to farmers increased from Rs. 4.40 lakh crore (US$ 51.04 billion) and Rs. 2.27 lakh crore (US$ 26.34 billi on) in 2004 13 to Rs.12.51 lakh crore (US$ 145.14 billion) and Rs. 5.44 lakh crore (US$ 63.14 billion) in 2014 24, respectively.

? Farmer Centric Initiatives

? PM KISAN: Rs. 3.46 lakh crore (US$ 40.14 billion) disbursed to support farmers.

? PMFBY: Rs. 1.65 lakh crore (US$ 19.14 billion) in claims under the Pradhan Mantri Fasal Bima Yojana (PMFBY). ? e-NAM: Over 1,400 mandis integrated for better market access.

? Agricultural Infrastructure Fund (AIF): Sanctioned Rs. 52,738 crore (US$ 6.12 billion) for 87,500+ projects to improve post-harvest management.

(Source: /https://www.ibef.org/download/1754309517_Agriculture-May-2025.pdf)

GOVERNMENT INITIATIVES THAT WILL FURTHER PROP UP THE SECTOR:

? The government has approved US$ 4.17 billion (Rs. 35,000 crores) for the PM Annadata Aay Sanrakshan Abhiyan (PM-AASHA), aiming to ensure remunerative prices for farmers and stabilize market prices for consumers. ? The Agricultural and Processed Food Products Export Development Authority (APEDA) is implementing strategic initiatives to di versify Indias agricultural exports, focusing on key products like fresh fruits, vegetables, processed foods, and animal products. ? Through several Digital Initiatives, such as the National e-Governance Plan in Agriculture (NeGP-A), the construction of Digital Public Infrastructure (DPI), digital registries, etc., the government has taken a number of steps to ensure access to IT across the nation. ? The Soil Health Card site has been updated and connected with a Geographic Information System (GIS) system, allowing all test results to be captured and shown on a map. Samples are now being gathered using a mobile application as of April 2023 under the new s ystem. ? The Indian government is planning to increase the number of primary agriculture cooperatives from 60,000 to 3 lakh until 2026. Moreover, the Agriculture Ministry would offer agricultural institutes with a grant of up to Rs. 10 lakh (US$ 13,175) for the procurement of drones.

? As per the Union Budget, 2023-24, A new sub-scheme of PM Matsya Sampada Yojana with targeted investment of Rs. 6,000 crore (US$ 729 million) to be launched to further enable activities of fishermen, fish vendors, and micro & small enterprises, improve value chain efficiencies, and expand the market. ? As per the Economic Survey 2024-25, for FY25, the MSP for arhar and bajra has been increased by 59% and 77% over the weighted average cost of production, respectively. Moreover, the MSP for Masur has risen by 89%, while rapeseed has seen an impressive increase of 98%. Since FY16, the government has implemented the Per Drop More Crop initiative under PMKSY, covering 95.58 lakh hectares by December 2024 with Rs.21,968.75 crore (US$ 2.57 billion) released to states for micro-irrigation, offering 55% subsidy to small/marginal farmers and 45% to others. From 2018 to 2024, loans worth Rs. 4,709 crore (US$ 551 million) were approved under the Micro Irrigation Fund (MIF), with Rs. 3,640 crore (US$ 426.5 million) disbursed, supported by a 2% interest subvention to states. ? Ground-level credit (GLC) to agriculture has also shown impressive growth with a CAGR of 12.98% from 2014-15 to 2024-25. The GL Chas risen from Rs. 8,45,000 crore (US$ 99.02 billion) in 2014-15 to Rs. 25,48,000 crore (US$ 298.57 billion) in 2023-24. Within this, the share of small and marginal farmers has significantly increased from Rs. 3,46,000 crore (US$ 40.54 billion) (41%) to Rs. 14,39,000 crore (US$ 168.62 billion) (57%) from 2014-15 to 2023-24. ? High machinery costs hinder farm mechanisation for small and marginal farmers; to address this, the Sub-Mission on Agricultural Mechanisation (SMAM) promotes Custom Hiring Centres (CHCs) and machinery banks to offer affordable rentals. As of 31 December 2024, 26,662 CHCs were established under SMAM, including 138 set up in FY25 alone, enhancing mechanisation access in under-served regions. ? Under the Agricultural Marketing Infrastructure (AMI) sub-scheme, a 25% subsidy is provided for projects in plain areas, and 33.33% for projects in North-East/hilly regions, or led by women, SC/ST promoters, and Farmer Producer Organisations (FPO). As of October 31, 2024, 48,611 storage infrastructure projects and 21,004 other infrastructure projects have been sanctioned, with total subsidies disbursed amounting to Rs. 6,921.23 crore (US$ 811 million). ? To enhance the income of farmers, the government has taken initiatives across several focus areas. Income support is provided to farmers through PM KISAN Scheme, crop insurance is assured through the Pradhan Mantri Fasal Bima Yojana, and irrigation facilities are ensured under Pradhan Mantri Krishi Sinchai Yojana. Access to institutional credit is being provided through Kisan Credit Card and other channels. ? Under the e-NAM initiative, markets across the length and breadth of the nation are now open to farmers, to enable th em to get more remunerative prices for their produce. Online, Competitive, Transparent Bidding System with 1.78 crore farmers and 2.62 lakh traders put in place under the National Agriculture Market (e-NAM) Scheme as of October 31, 2024. ? In order to increase the level of food-processing industry and encouraging rural entrepreneurship across the country including rural areas, Ministry Food Processing Industries (MoFPI) is implementing Central Sector Umbrella Scheme Pradhan Mantri Kisan SAMPADA Yojana (PMKSY), Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) and Centrally sponsored PM Formalization of Micro Food Processing Enterprises (PMFME) Scheme. ? Under component schemes of PMKSY, MoFPI mostly provides financial assistance in the form of grants-in-aid to entrepreneurs for creation of modern infrastructure and setting up of food processing / preservation industries including Cold Chains with associated infrastructure like primary processing facilities, collection centres, pre-conditioning, pre-cooling, ripening, packing etc.

(Source: /https://www.ibef.org/download/1754309517_Agriculture-May-2025.pdf)

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

Though the various risks associated with the business cannot be eliminated completely, all efforts are made to minimize the impact of such risks on the operations of the Company. Necessary internal control systems are also put in place by the Company on various activities across the board to ensure that business operations are directed towards attaining the stated organizational objectives with optimum utilization of the resources. Apart from these internal control procedures, a well-defined and established system of internal audit shall be in operation to independently review and strengthen these control measures, which shall be carried out by an experience auditor. The audit shall be based on an internal audit plan, which is reviewed each year in consultation with the statutory auditor of the Company and the audit committee. The conduct of internal audit shall be oriented towards the review of internal controls and risks in its operations. The Internal Auditor of the Company shall carry out review of the internal control systems and procedures. The internal audit reports shall be reviewed by Audit Committee and Board. Your Company has also put in place adequate internal financial controls with reference to the financial statements commensurate with the size and nature of operations of the Company. During the year, such controls were tested and no material discrepancy or weakness in the

Companys internal controls over financial reporting was observed.

HUMAN RESOURCES AND INDUSTRIAL RELATIONS:

The Company as per its Human Resource strategy focuses on inclusive, collaborative and growth-oriented culture. Companys workforce has grown from strength to strength over the last years. From its early days, Company remained an equal opportunity employer and has embedded these values in its employee life cycle management from hiring, retaining to retirement. The Company complies with all applicable fair employment practices and equal opportunity laws in every state where it operates. In line with its commitment to deliver superior performance through its dedicated, capable, and agile workforce in all spheres of business, the company has focused on Collaboration at work, capability enhancement systems, new ways of Learning & Development and Work-Life Balance to ensure higher productivity. The Company strictly prohibits discrimination against any employee or applicant based on language, race, colour, religion, sex, origin, ethnicity, age, disability, marital status, sexual orientation, gender identity, or any other category protected by law. Comp any firmly believes that people are its greatest assets and it is always endeavours to ensure their development and growth. Companys strategy supports promoting diversity in its workforce while ensuring each employee feels empowered at work. It has robust human resource framework and processes which support the smooth functioning of workforce and wellbeing of all the employees. Linkage between personal goals and organizational goals is considered a vital aspect for the shared growth of employees and the organization. Annual appraisals are made to ensure such an alignment and the Company has to continue to invest in the development of its employees, which is very important for ensuring sustained high performance. As on March 31, 2025, the total number of employees in your Company was 59.

COMPANY PROFILE:

Incorporated in 1985 our Company is a fully integrated player within the drip irrigation and sprinkler irrigation sectors, with presence in micro irrigation industry. Our products are reckoned to meet high quality standards and our brand is associated with providing value-based irrigation solutions to our end customers and are subject to BIS standards. Our Company is engaged in manufacturing and sale of HDPE pip es, fittings and micro irrigation systems, such as drip irrigation system and sprinkler irrigation system, its components, accessories and allied products. As a manufacturer and seller of drip and sprinkler irrigation system our product range includes HDPE Pipes, pipe fittings and irrigation equipments, including disc filters, screen filters, hydro-cyclone filters, sand filters (gravel), compression fittings, valves (electrical and mechanicals), fertilizer tanks, Digital Controllers, Pressure Gauges, etc. We sell these products under the brand "Polysil".

We sell our products through institution markets and open market sale. Under the open market sale, we sell our products through distributors and dealers, who then resell the products to customers i.e. farmers. Our end customers are eligible to receive government subsidy, the process for disbursal of such subsidy is managed by our distributor / dealers and/or our customers. We operate in the state of Gujarat, Tamil Nadu, Maharashtra, Andhra Pradesh, Karnataka, Madhya Pradesh, Uttar Pradesh, Rajasthan and Haryana. We operate in the State of Maharashtra, Madhya Pradesh and Rajasthan through our dealer / distributor network and in the State of Andhra Pradesh, Gujarat, Tamil Nadu, Haryana and Uttar Pradesh under institutional model. Our current Promoters, who are the driving force behind the growth of our Company, between themselves have in-depth knowledge and good experience of the micro irrigation industry. Our Promoters share various functional responsibilities amongst themselves for effective management and are well supported by qualified and experienced professionals at different levels with appropriate functional responsibilities. Our existing manufacturing unit is spread around 100,000 sq. ft. area is situated at RS NO.340/1, Beside Hystuff Steel, Village Rania, Taluka. Savli, Dist.Vadodara, Manjusar, Vadodara, Gujarat is equipped with requisite plant and machineries and other facilities. We also have in-house testing laboratory for quality control checks and testing our products. Our manufacturing unit and our products are acc redited with IS 4984:2016 for polyethylene pipes for water supplies, IS 13487:2016 for irrigation equipment emitters, IS 13488: 2008 for irrigation equipment emitting pipe systems, IS 14151:2008 for irrigation equipment sprinkler pipes, polyethylene pipes and fitting for sprinkler irrigation systems and IS 12786:1989 for irrigation equipment polyethylene pipes for irrigation laterals. We purchase the irrigation equipments and accessories such as, disc filters, screen filters, hydro-cyclone filters, sand filters (gravel), compression fittings, valves (electrical and mechanicals), fertilizer tanks, Digital Controllers, Pressure Gauges, etc from third-party manufacturers who also manufacture these products as per our specification and also under the brand "Polysil".

Our basic raw material includes HDPE, LLDPE and LDPE granules and we procure our raw materials based on market availability, pricing and quality from the domestic market and also from international market.

FINANCIAL PERFORMANCE AND HIGHLIGHTS:

Financial Highlights (INR In Lakhs)

Particulars	F.Y. 2024-25	F.Y. 2023-24
Revenue from Operations	1388.84	4,446.42
Other Income	24.63	10.11
Total Income	1413.47	4,456.53
Less: Total Expenses before Depreciation, Finance Cost and Tax	1292.68	3,889.97
Profit before Depreciation, Finance Cost and Tax	120.79	566.56
Less: Depreciation	71.09	72.48
Less: Finance Cost	183.86	192.23
Profit Before Extraordinary & Exceptional Items and Tax	(134.16)	301.85
Less: Prior Period Item	0.00	0.00
Profit before tax	(134.16)	301.85
Less: Current Tax	0.00	83.53
Less: Deferred tax Liability (Asset)	6.19	11.15
Less: Prior Period Tax	44.84	0.00
Profit after Tax	(185.19)	207.17

During the year under review, the revenue from operation of the Company was stood at INR 1388.84 Lakhs as against that of INR 4,446.42 Lakhs for previous year. Revenue from operation of the Company was decreased by 68.77% over previous year. Losses before Tax for the financial year 2024-25 stood at INR 134.16 Lakhs as against Profit before Tax of INR 301.85Lakhs for the financial year 2023-24 making the net loss of INR 185.19 Lakhs for the financial year 2024-25 as against the net profit of INR 207.17 Lakhs for the financial year 2023-24.

The Board is making its continuous efforts for re-visiting the policies of the Company and increasing the capacity utilization of manufacturing capacity. The Board expects a growth in the Revenue from operations and ultimately an increase in the Net Profit over the upcoming years. A detailed analysis of the operations and financial results of the Company during the year under review is included in the Management Discussion and Analysis, forming part of this Annual Report.

TURNOVER FROM MANUFACTURING AND TRADING ACTIVITIES (INR In Lakhs)

Particulars	31 March 2025	31 March 2024
Manufacturing
- HDPE/LLDPE/PVC Pipe	56.53	1,423.02
- HDPE Sprinkler Systems	57.39	669.65
- Drip Irrigation Systems	224.64	1,969.87
Trading
- HDPE/LLDPE/PVC Pipe	953.78	178.57
- HDPE Sprinkler Systems	71.54	116.02
- Drip Irrigation Systems	24.96	89.29
Total	1,388.84	4,446.42

Total

RATIO ANALYSIS

Particulars	Numerator/Denominator	March 31, 2025	March 31, 2024	Change in %
(a) Current Ratio	Current Assets	1.26	1.42	-11.07%
	Current Liabilities
(b) Debt-Equity Ratio	Total Debts	0.73	0.67	8.67%
	Shareholders Equity
(c) Return on Equity Ratio	Profit after Tax	-7.77%	10.28%	-175.60%
	Average Shareholders Equity
(d) Inventory turnover ratio	Total Turnover	0.60	2.96	-79.85%
	Average Inventories
(e) Trade receivables turnover ratio	Total Turnover	0.31	1.18	-73.68%
	Average Trade Receivable
(f) Trade payables turnover ratio	Total Purchases	0.92	1.69	-45.70%
	Average Trade Payable
	Total Turnover
(g) Net capital turnover ratio		0.85	2.17	-60.91%
	Closing Working Capital
(h) Net profit ratio	Net Profit	-13.33%	4.66%	-386.19%
	Total Turnover
(i) Return on Capital employed	Earnings before interest and taxes	1.24%	11.61%	-89.35%
	Capital Employed