Rajshree Polypack IPO FAQ

<ol> <li><p><strong>What is the current capacity and how much is the utilization?</strong></p> <p>The manufacturing capacity is calculated in terms of the following products/ processes, for which we are giving the installed and utilized capacity for FY 2018:</p> <DIV class='row table table-responsive'> <div class="table-responsive"><table class="table table-bordered table-striped w-auto"> <caption>Rajshree Polypack Limited Manufacturing Capacity</caption> <thead> <tr><td><p><strong>Manufacturing Capacity</strong></p></td> <td><p><strong>FY 17-18</strong></p></td> </tr> <tr> <td><p><strong>S. N.</strong></p></td> <td><p><strong>Particulars</strong></p></td> <td><p><strong>Installed Capacity at the end of year/period</strong></p></td> <td><p><strong>Effective Capacity Utilisation %</strong></p></td> </tr> </thead> <tbody> <tr><td><p>1.</p></td><td><p>Extrusion (In MT per year)</p></td> <td><p>10,200</p></td><td><p>82.84%</p></td> </tr> <tr> <td><p>2.</p></td><td><p>Thermoforming (In MT per year)</p></td> <td><p>4,320</p></td><td><p>77.57%</p></td> </tr> <tr> <td><p>3.</p></td><td><p>Printing (Pieces in Lakhs per year)</p></td> <td><p>5,148</p></td><td> <p>78.25%</p></td> </tr> <tr> <td><p>4.</p></td><td><p>Sleeving (Pieces in Lakhs per year)</p></td> <td><p>1,275</p></td><td><p>88.85%</p></td> </tr> </tbody> </table></div> </div></li> <li><p><strong>What would be manufactured in proposed Unit IV?</strong></p> <p>The proposed Unit IV will enable the Company to increase the capacity to manufacture its present line of products i. e rigid plastic sheets and thermoformed packaging products.</p></li> <li><p><strong>Who are the top 5 customers and how much they contribute to turnover?</strong></p> <p>For details of the major customers' contribution, please refer the table below:</p> <DIV class='row table table-responsive'> <div class="table-responsive"><table class="table table-bordered table-striped w-auto"> <caption>Rajshree Polypack Top 5 Customers For FY 2018</caption> <thead> <tr> <td><p><strong>Particulars</strong></p></td> <td><p><strong>% (of total revenues)</strong></p></td> </tr> </thead> <tbody> <tr> <td><p>Top three (3) customers</p></td> <td><p>41.56%</p></td> </tr> <tr> <td><p>Top five (5) customers</p></td> <td><p>46.84%</p></td> </tr> <tr> <td><p>Top ten (10) customers</p></td> <td><p>54.89%</p></td> </tr> </tbody> </table></div> </div> <DIV class='row table table-responsive'> <div class="table-responsive"><table class="table table-bordered table-striped w-auto"> <caption>Rajshree Polypack Top 5 Customers For FY 2017</caption> <thead> <tr> <td><p><strong>Particulars</strong></p></td> <td><p><strong>% (of total revenues)</strong></p></td> </tr> </thead> <tbody> <tr> <td><p>Top three (3) customers</p></td> <td><p>41.19%</p></td> </tr> <tr> <td><p>Top five (5) customers</p></td> <td><p>47.05%</p></td> </tr> <tr> <td><p>Top ten (10) customers</p></td> <td><p>56.69%</p></td> </tr> </tbody> </table></div> </div></li> <li><p><strong>Mention of risk on Plastic Ban controversy, with more states joining bandwagon what will be the impact on RPPL's market share? (refer page 22 of offer document)</strong></p> <p>The products manufactured by the Company are mainly used for primary packaging which is not affected by the plastic ban. The contribution to the net revenue from operations of the Company from the sale of restricted products distributed in the state of Maharashtra was only 2.31% in FY 2017-18.</p> <p>Further the Company has been constantly adaptive to changes in external and regulatory environment. The Company has already started testing of products made of Bio-degradable material and samples have been submitted to the Central Institute of Plastics Engineering & Technology (CIPET) for their testing and approval as disclosed on page 149 in the RHP.</p></li> <li><p><strong>The quantum jump in bottom lines from FY16 onwards is on what account?</strong></p> <p>The Company's profits have increased by 986.93% from Rs. 72.06 Lakhs in FY 2015 to Rs. 783.24 Lakhs in FY 2016 and, profit for the period as a percentage of total revenue has increased from 1.11% in FY 2015 to 8.19% in FY 2016. This is primarily on account of increase in revenue from operations due to enhanced use of expanded capacity.</p></li> </ol>