Dear Shareholders,

A warm welcome to the unveiling of PG Foils Limited's Annual Report for the fiscal year 202324. This report is a testament to our journey, the milestones we have achieved, the challenges we have overcome, and the path we have paved for the future. It reflects our unwavering commitment to excellence, innovation, and sustainable growth.

Before delving into our performance update and unveiling our future plans, I believe it's essential to revisit the foundation on which our achievements stand. Our success is built on the pillars of innovation, resilience, and a relentless commitment to excellence. These core values drive us to constantly seek new opportunities, adapt to changing market dynamics, and strive for operational excellence.

OUR EARLY HISTORY

Looking back, I am reminded of a pivotal turning point in our journey. When two prominent international players in the Indian aluminum packaging sector faced challenges and struggled to meet their supply commitments, a significant opportunity arose for us. We had tirelessly pursued these customers for years, but the exacting specifications of our products made breaking through a daunting task. However, when issues arose with their existing vendors, these customers entrusted us with their orders. This fortunate turn of events, though born out of challenges, was immensely valued. We worked tirelessly to earn and maintain the trust of our customers, and many of them remain steadfast with us to this day.

This period was a crucible that steeled our resolve and prepared us for the challenges that lay ahead. But what truly bolstered us was the unwavering commitment of our team and the local community. They embraced the vision of building an industry in our village, and their dedication was truly inspiring. I take immense pride in the transformation our team has undergone, evolving into a highly skilled and specialized workforce.

Equally, I am delighted to see the growth of our land, now boasting the highest GDP in the Pali region of Rajasthan. I can't help but believe that my father would be pleased to witness this transformation. Our journey, marked by resilience and relentless pursuit of excellence, has not only solidified our market position but also contributed significantly to the economic development of our community.

As we move forward, let us carry the lessons and the spirit of this pivotal period with us. It is this spirit of resilience, community support, and unwavering commitment to quality that will continue to drive our success in the years to come.

LEGACY OF EXCELLENCE IN THE ALUMINUM FOIL AND PACKAGING SECTOR

PG Foils holds a distinguished position in the aluminum foil and packaging industry, being the first indigenous company in the field, the first in northern India, and the first to be backed by Indian promoters. Situated in a village setting, our hands- on promoters and skilled homegrown team have gained expertise through firsthand experience.

While many companies have declined, both before and after us, we have not only endured but thrived, thanks to our distinctive mindset and approach.

In a business where precision and quality are paramount, we understand the value of close proximity and vigilant supervision. Our plant and shop floor are not distant offices but the very heart of our operations. Our commitment to quality is unwavering. We know that compromised packaging can jeopardize millions, adhering to the principle that the manufacturer's own loss is immense if material rejects erode product value.

The heart of our success lies in fostering a unique culture—entrepreneurial, deeply engaged, and opportunistic. Our approach defies conventional norms. While we are undoubtedly process-driven, our business acumen, proactive engagement, and calculated risks, refined over decades, transcend traditional management practices. This approach has enabled us to improve our financial profile remarkably, even as we navigate the complexities of cash purchases and credit sales.

Quality remains our cornerstone. We source the finest materials, including aluminum from prestigious suppliers like Bahrain-based GARMCO, one of the oldest and largest downstream aluminum companies in the Middle East. We spare no effort in maintaining stringent quality parameters, ensuring that our products, crucial for essential consumables, meet the highest standards.

Our commitment to our customers extends beyond transactions. I personally undertake regular visits to nurture these relationships, establishing a direct and sincere rapport. This relationship-building approach has been instrumental in transforming formal interactions into friendly alliances. In return, our customers trust us to deliver quality, cost- effectiveness, and timely delivery.

Our journey is a testament to determination, innovation, and customer trust. At PG Foils, we continue to set new benchmarks in the aluminum foil and packaging industry, driven by our commitment to excellence and a steadfast focus on the future.

FINANCIAL PERFORMANCE:

The year 2023-24 has been a period of resilience and strategic adaptation for PG Foils Limited. Our company recorded a satisfactory performance, with financial figures showing growth compared to the previous fiscal year. To further support our sustainable development goals, we strategically redeemed life insurance policies prematurely as we are getting good returns and by utilizing the funds we effectively manage and control finance costs. This approach underscores our commitment to maintaining financial stability while fostering longterm growth. The gist of performance in 2023-24 is given below:

• Income from operations Rs. 31715.67 Lacs

• EBIDTA for the financial year 2023-24 Rs.2931.53 Lacs

• Net profit for the financial year 2023-24 Rs.2007.42 Lacs

• Earning per share(EPS) Rs. 14.57

• On the balance sheet side, total assets Rs. 41299.27 Lacs in 2023-24

• We have nil non-current borrowings and are debt-free on a net debt basis, with cash and equivalent of Rs 16862.19 Lacs against debt liability of Rs. 7452.97 Lacs (as on 31 March 2024)

FINANCIAL MOBILIZATION:

Recognizing the importance of ensuring a solid financial foundation, we took proactive steps to bolster our working capital. By the end of March 2024, we successfully mobilized a total of 13.41 crore through a preferential issue. This initiative saw the participation of a diverse range of investors, including our valued promoter group. The funds raised through this effort will be judiciously utilized to meet our future working capital requirements, thereby fortifying our ability to seize emerging opportunities.

WAY FORWARD:

While we faced headwinds in the form competitive challenges, I assure you that our dedication to excellence remains unwavering. We will continue to prioritize operational efficiency, product innovation, and customer satisfaction.

ACKNOWLEDGMENTS:

I extend my heartfelt gratitude to all our shareholders, whose unwavering support propels us forward. Our employees, stakeholders, and business partners also deserve a special mention for their invaluable contributions during this challenging period.

In conclusion, I am confident that the strategic decisions we have made, coupled with the unyielding determination of our entire team, will steer P G Foils Limited towards a brighter and more prosperous future.

Best wishes to you and your family,

Pankaj P Shah

Chairman and Managing Director.