Purv Flexipack Ltd Management Discussions

Annexure -VII

The Management of Purv Flexipack Limited presenting Management Discussion and Analysis Report covering the operational and financial performance of the company for the year 2024-25, the core business of the company is engaged in distribution of various plastic-based products and Del Credere Associate (DCA) Dealer Operated Polymer Warehouse (DOPW) of Indian Oil Corporation Limited.

BRIEF PROFILE OF THE COMPANY

Established three decades ago, Purv Flexipack Limited, has emerged as a stalwart in the supply of raw materials to the flexible plastic packaging industry in East India. The group started its operations in the year 1994 under the name of SR Enterprise. Purv Flexipack Pvt Ltd was incorporated in 2005 in Kolkata. Our head office is in Kolkata, India and we have a branch in Guwahati. With a rich history spanning 30 years, we have consistently evolved to meet the dynamic needs of the market. We represent the following companies to market their products in East & North Eastern states of India.

Vision

Our vision is to become the one-stop solution in the beverage industry. We aim to provide the most innovative and economical solutions to our valued customers by leveraging state-of-the-art machinery.

Mission

We aim to focus on innovative ideas and products adhering to international standards in the industry. Our company also aims to achieve long-term goals through teamwork.

Strength:

We differentiate ourselves through a unique combination of strengths:

1. Customization of different size of roll: The state-of-the-art slitting machines in our sister concern allows us to customize products to meet specific client requirements, a capability unmatched by our competitors. In the East, we are the only trader who has 6 slitting machines which can slit the jumbo rolls from 2000mm to 50mm rolls.

2. Transportation Fleet: A substantial fleet of transportation vehicles ensures timely delivery and customer satisfaction. We own 3 vehicles and have partnerships with 3 other transporters with a combined capacity of 15 vehicles, to meet customer requirements. Throughout COVID, we were the only company who had met all of the customers needs because of our infrastructure, logistic facilities and stock holding capacity.

3. Innovative Products: We pioneered the development of Window Metalized Films, addressing the growing demand for transparency in packaging. In the East, no other company provides all the facilities under one roof.

4. Prime Location: Our strategically located warehouses in prime industrial zones are both cost-efficient and accessible to major clients.

INDUSTRY STRUCTURE AND DEVELOPMENT

Incorporated in 2005, the Company is engaged in the distribution of various plastic-based products such as Biaxially Oriented Polypropylene (BOPP) film, Polyester Films, Cast Polypropylene (CPP) films, Plastic granules, Inks, Adhesives, Masterbatches, Ethyl Ace date, and Titanium Dioxide. In addition, our company is a Del Credere Associate (DCA) Dealer Operated Polymer Warehouse (DOPW) of Indian Oil Corporation Limited for their polymer division.

OPPORTUNITIES AND THREATS

Our company is seizing an opportunity to import polymer of non-IOCL grades from countries like Middle east, China, Singapore and USA. Our group companies are already importing these types of polymers from abroad and consuming them in our subsidiary company and selling them in open market. As per our management survey there is huge potential for these type of products in India and our company plans to import them on large scale basis. At present prices of these type of polymers is cheap in comparison to Indian manufactured polymers and our company wants to cash-in the opportunity as we have established connects in the corporates and users using these polymers due our experience in this line of trade for more than 30 years. Our company also plan to expand its product range further and explore new avenues of growth i.e.

Aluminium Foil of SRF which uses in the application in household foil, flexible packaging and pharma sector.

Different chemical of Solvay which uses in the application in Binder, Adhesive, Paints, Solvent, Floor Cleaning etc. Threats such as- 1. Regulatory and Government Policy Risks 2. Volatility in Global Markets 3. Domestic Competition and Manufacturer Pushback 4. Quality and Perception Issues 5. Supply Chain and Inventory Management 8. Credit and Payment Defaults

RISK MANAGEMENT

Liquidity risk	Mitigation: The Company mitigates its liquidity
The Company might not have the ability to meet short-term financial obligations without incurring major losses.	risks by maintaining adequate reserves, banking facilities and reserve borrowing facilities by continuously monitoring forecast and actual cash flows and by matching the maturity profiles of financial assets and liabilities.
Competition risk The Company might face challenges to retain its market share due to increased competition from larger players.	Mitigation: The Company created a network of distributors who remained with the Company since its inception.
Quality risk The Companys inability to maintain the required product quality standards might affect its market share.	Mitigation: The Company overcame quality risks through process-driven systems, training, certifications and sampling.
Financial risk Increase in debt might pose a risk for the Company.	Mitigation: The Company regularly repays its debt, strengthening its Balance Sheet and credit rating. Going ahead, the Company expects to grow through its accruals.
Human capital risk Inability to attract and retain talent could impact prospects	Mitigation: The Companys structured human resource policy attracts and retains talent. The Company has developed the prospect of a company that is professional and yet humane, strengthening talent retention
Information technology risk Incompatible information technology approach could lead to financial, process or reputation loss	Mitigation: The Company ensures data security by having identity and access control, authorisation matrix and all critical business data (user data and application data) are backed to ensure information security.
Regulatory risk The Companys operations might be impacted due to change in regulatory operations.	Mitigation: The Company complies with all the regulatory measures announced by the government.

INTERNAL CONTROL SYSTEM AND ADEQUACY

The Company has a well-established and comprehensive internal control system. Documents, policies and authorization comply with the level of responsibility and standard operating procedures specific to the respective businesses. The system of internal control is being improved to ensure that all assets are safe and protected against loss from unauthorized use or disposition, and that all transactions are authorized, recorded and reported correctly. The Company regularly conducts internal check, using external and internal resources to monitor the effectiveness of internal control in the organization. It strictly adheres to corporate policy with respect to financial reporting. The Audit Committee of the Board of Directors deals with significant control issues and instructs further areas to be covered.

FINANCIAL PERFORMANCE

The summarized financial performance of the Company as compared to last year is shown as under:

Particulars	2024-25	2023-24	% change
Revenue from operations	16,361.62	10,374.54	57.70
Other Income	789.11	1159.01	(31.91)
Profit before tax	409.23	460.91	(11.21)
Net Profit after tax	297.10	383.15	(22.45)
Payment of Dividend (including Interim and DDT)	NA	NA	NA
EPS	1.42	2.55	(44.31)

KEY RATIOS:

Particulars	FY 2024- 25	FY 2023-24	% Change
Current Ratio (In times)	2.16	2.48	-12.78%
Debt-Equity Ratio (In times)	0.59	0.43	37.82%
Debt Service Coverage Ratio (In times)	9.71	1.87	419.14%
Return on Equity Ratio (%)	0.03	0.04	-40.29%
Inventory Turnover Ratio (In times)	12.12	6.62	83.06%
Trade Receivables Turnover Ratio (In times)	2.26	1.59	42.45%
Trade Payables Turnover Ratio (In times)	8.98	5.19	73.15%
Net Capital Turnover Ratio (In times)	1.86	1.58	17.65%
Net Profit Ratio (%)	0.02	0.04	-50.83%
Return on Capital Employed (%)	0.08	0.10	-13.94%
Return on Investment (%)	NA	NA	NA
Operating Profit Margin Ratio (%)	2.50	7.66	-67.36%
Interest Coverage Ratio (%)	1.74	1.68	3.57%

Reason for variation (More than 25%)

1 Debt-Equity Ratio (in times)

Debt-Equity Ratio Increase from 0.43 to 0.59 due to increase in Total debt during the year as compare to previous year.

2 Debt Service Coverage Ratio (in times)

Debt Service Coverage Ratio Increase from 1.87 to 9.71 due to decreased in Instalment Amount in FY 2024-25 as compare to pevious year.

3 Return on Equity Ratio (in %)

Return on Equity Ratio decrease from 0.04 to 0.03 due to Increase in Shareholders Equity as compare to previous year and also increase in the shareholders equity as compared to previous year.

4 Inventory Turnover Ratio (In times)

Inventory Turnover ratio Increase from 6.62 to 12.12 due to Increase in the cost of goods sold in current year as compare to previous year.

5 Trade Receivables turnover ratio (In times)

Trade Receivable Turnover ratio increase from 1.59 to 2.26 due to Increase in the net credit sale in current year as compare to previous year.

6 Trade payables turnover ratio (In times)

Trade Payable Turnover ratio increase from 5.19 to 8.98 due to Increase in net credit purchase in current year as compare to previous year.

7 Net profit ratios (in %)

In current year, Revenue from operation has increase compared to previous year but the Total expense has also increase in current year compared to previous year due to which Net profit of the company has decreased from 460.91 Lakhs to 409.23 Lakhs and hence Net profit ratio decreases from 0.04% to 0.02%.

8 Operating Profit margin Ratio (in %)

Operating Profit margin ratio decreased from 7.66 to 2.50 due to high overhead or administrative costs.

HUMAN RESOURCE

The Company believes that the quality of the employees is the key to its success and is committed to equip them with skills, enabling them to seamlessly evolve with ongoing technological advancements. During the year, the Company organised training programmes in different areas such as technical skills, behavioural skills, business excellence, general management, advanced management, leadership skills, safety, values and code of conduct. The Companys employee strength stood at 43 as on 31st March 2025.

CAUTIONARY STATEMENT

This statement made in this section describes the Companys objectives, projections, expectation and estimations which may be ‘forward-looking statements within the meaning of applicable securities laws and regulations.

For Purv Flexipack Limited

Sd/-

Rajeev Goenka

Chairman and Non-Executive Director

DIN: 00181693

Place: Kolkata

Date: 21.08.2025