Commercial Syn Bags Ltd

Dear and esteemed fellow shareholders,

I am delighted to present to you our 39th Annual Report for the Financial Year 2022-23.

Our Hon'ble Prime Minister, Shri Narendra Modiji, said in his address to the nation on this Independence Day that : "This is a New India full of self-confidence. Ye Bharat na rukta hai, na thakta hai, na haanfta haiaur na hi haarta hai". This India is unstoppable, this India is tireless, this India does not gasp for breath, and this India does not give up."

The historic success of Chandrayaan 3 demonstrated this yet again. On behalf of all of you, I send our heartiest congratulations to all scientists and engineers at ISRO. Having consolidated its position as a global Space Power, what India can achieve in future is indeed limitless

The year witnessed major macroeconomic factors that shaped the global economy—higher interest rates coupled with tightening liquidity, high commodity prices following the Russia-Ukraine conflict, high energy and food prices in Europe, and global supply- chain disruptions, amongst others.

Against this backdrop, India comes out as a bright spot in the global economy. India is marching ahead at a fast pace to take its place as one of the leading economies in the world. The nation is undergoing a social and economic transformation that is unmatched in history. . India's transformation as a prosperous, strong and self-confident nation stands out as a beacon of hope for the world. This is reflected in India's G20 theme — ‘One Earth, One Family, One Future'. India's presidency of G20 has made today's divided international community take note of the inspiring words of the Upanishads: ‘Vasudhaiva Kutumbakam' or the ‘Entire World is Our Family '. It recently became the 5th largest economy in the world with sights now set on achieving the US$5 trillion GDP mark.

The fiscal year 2022-23 was especially a challenging year for us. As majority of our revenue comes from countries other than India, our business was affected by the global slowdown and adverse market conditions caused by global supply chain inefficiencies and high commodity prices. Our Standalone Revenue from Operations is reduced by 9.36% and Profit after Tax is reduced by 55.52% on year on year basis. Significantly, we performed better than our peer group in the Industry in FIBC's where we managed to produce and sell almost the same quantity against a 15-20% degrowth registered by other Indian Companies. The export sales continue to contribute more than 70% of total sales from manufacturing segment and Company's customer base is spread in all the comments except \nlareliea.

Your Company has commenced commercial production of its new manufacturing unit Techtex (A unit of Commercial Syn Bags Limited) situated at Plot Nos A-12 & A-13, Indore Special Economic Zone, Pithampur Phase - 2, Dhar, Madhya Pradesh on 11th March, 2023. The capacity addition with the commencement of this unit is 3900 MTPA and the total capacity of the Company is 24530 MTPA (on standalone basis). The new unit is into the manufacturing of Geotextiles, Ground Covers, Nets and other technical textiles products.

In order to conserve resources, your Board of Directors do not recommend any dividend for the Financial Year 2022-23 and proposes to retain the profits for future requirements of the Company. (P.Y. Rs. 2.10 per share of Rs. 10/- each i.e. 21 %).

Your Company always focuses on operational efficiency and reduction in cost for which it has also taken some initiatives in previous years. During the year under review 18.18 Lakhs units of Electricity were generated through 1.0 MW (1.2 MW peak (p) Solar Power Generating System at Ujaas Solar Park, Sitamau (MP) and used as captive consumption at Company's manufacturing units at Pithampur and 3.38 Lakhs unit were generated from the installed rooftop solar plant at Unit - II.

During the year under review your Company has achieved turnover of44029.93 MT vis a vis 44989.28 MT in financial year 20222023 under trading operations as DCA cum CS of ONGC Petro additions Limited (OPaL), and strengthened its presence in domestic market.

As we look ahead, we realise that the path to recovery will be arduous, but we remain steadfast in our commitment to emerge resilient. We remain cautiously optimistic about the future, confident in our capacity to adapt, develop, and embrace new possibilities when consumer global spending returns to normal and inflation stabilizes.

In conclusion, I would like to thank each one of you, our valuable shareholders, for being our copassengers on this j ourney. We have received unending support from banks, financial institutions and the various State and National Governments where we operate. . We would like to express our sincere gratitude to the board members who have guided us to sustain the standards of governance.

On behalf of the Board of Directors, I would like to acknowledge every single employee for having stood by our Company and actively contributed to its success.