Commercial Syn Bags Ltd Management Discussions

Global Economy in Crosscurrents of War and Technology

Global growth is projected to be 3.0 percent in 2026 and 3.4 percent in 2027, down from the average of 3.5 percent observed in 2024-25 and broadly unchanged on a cumulative basis compared with the forecasts in the April 2026. The modest slowdown reflects the effects of the war in the Middle East being partly offset by accelerated demand-driven momentum in the global technology cycle thanks to advances in artificial intelligence (AI) and its adoption.

The impact varies widely based on countries exposure to the war and position in the technology value chain. Energy exporters outside the conflict zone benefit from favorable terms of trade, whereas economies plugged into the technology-led upturn experience stronger activity even if they are energy importers.

In contrast, activity weakens for energy importers with limited participation in the technology value chain, a group that includes many low-income countries. Global headline inflation is expected to increase from 4.1 percent in 2025 to 4.7 percent in 2026 before declining to 3.9 percent in 2027. Slightly revised upward from April, these projections indicate that the disinflation trend in place since the beginning of 2024 has stalled. Risks to the outlook are more balanced than in April but still tilted to the downside. The possibility of renewed Middle East conflict looms large and could extend commodity price volatility, further threaten supply chains, raise prices, and weigh on financial conditions.

Trade fragmentation could accelerate, possibly hurting output and increasing prices. A possible correction in technologydriven expectations adds to the downside risks, whereas eroded policy buffers can amplify those risks. Upside risks stem from a swifter-than-expected normalization in energy markets, stronger-than-expected technology investment, a revival of durable cooperation that lowers trade barriers, and structural reform that raises mediumterm growth. Policy priorities are restoring price stability, supported by clear communication, central bank independence, and strong financial oversight, while rebuilding fiscal buffers and using fiscal tools sparingly through temporary, targeted support that preserves price signals. Structural reforms are needed to promote energy security, AI readiness, domestic rebalancing, and international cooperation should be strengthened to relieve the strain of ongoing tensions.

(Source- World Economic Outlook Update by IMF, July 2026)

Indian Economy Overview

Indias economic momentum remains strong, underpinned by resilient domestic demand and sustained macroeconomic stability. In FY2025-26, Real GDP (GDP at Constant Prices) is estimated to reach US 3.66trillionrisingfromUS 3.66 trillionrisingfromUS 3.55 trillion in FY2024-25, reflecting a robust growth of 7.7%. Indias current account surplus stood at US 7.1billioninQ4FY2025 - 26(January - March),comparedwithUS 7.1 billioninQ 4 FY 2025 - 26 ( January - March ) , comparedwithUS 13.7 billion in Q4 FY2024-25. The merchandise trade deficit widened to US 83.4billionfromovertheyears,theIndiangovernmenthasintroducedmanyinitiativestostrengthenthenation seconomy.TheIndiangovernmenthasbeeneffectiveindevelopingpoliciesandprogrammesthatarenotonlybeneficialforcitizenstoimprovetheirfinancialstabilitybutalsofortheoverallgrowthoftheeconomy.Overrecentdecades,India srapideconomicgrowthhasledtoasubstantialincreaseinitsdemandforexports.Besidesthis,anumberofthegovernment sflagshipprogrammes,includingMakeinIndia,Start - upIndia,DigitalIndia,theSmartCityMission,andtheAtalMissionforRejuvenationandUrbanTransformation,areaimedatcreatingimmenseopportunitiesinIndia.mUS 83.4 billionfromovertheyears , theIndiangovernmenthasintroducedmanyinitiativestostrengthenthenation seconomy . TheIndiangovernmenthasbeeneffectiveindevelopingpoliciesandprogrammesthatarenotonlybeneficialforcitizenstoimprovetheirfinancialstabilitybutalsofortheoverallgrowthoftheeconomy . Overrecentdecades , India srapideconomicgrowthhasledtoasubstantialincreaseinitsdemandforexports . Besidesthis , anumberofthegovernment sflagshipprogrammes , includingMakeinIndia , Start - upIndia , DigitalIndia , theSmartCityMission , andtheAtalMissionforRejuvenationandUrbanTransformation , areaimedatcreatingimmenseopportunitiesinIndia . mUS 59.3 billion in the corresponding quarter, while net services receipts increased to US 60.4billionfromUS 60.4 billionfromUS 53.3 billion.

India is primarily a domestic demand-driven economy, with consumption and investments contributing to 70% of the economic activity. With Indias economy showing resilient growth, supported by strong domestic demand, policy reforms, and a healthy investment pipeline, several new projects and developments are underway across key sectors. According to World Bank, India must continue to prioritise lowering inequality while also putting growth-oriented policies into place to boost the economy.

Indias economic outlook remains robust, supported by strong macroeconomic fundamentals, resilient domestic demand and sustained investment momentum. The economy continues to rank among the fastest-growing major economies globally, driven by broad-based expansion across manufacturing, services and infrastructure, alongside steady improvement in industrial and business activity.

A stable external position, supported by a manageable current account balance and consistent capital flows, reinforces confidence in Indias long-term growth trajectory. Despite evolving global uncertainties, investor interest remains intact across key sectors, backed by policy stability and structural growth drivers.

Domestic demand continues to act as a key anchor, supported by stable inflation, rising mobility and travel activity, healthy tax collections and strong participation from domestic institutional investors. Ongoing government initiatives to boost manufacturing, innovation, renewable energy and food security are further strengthening the foundation for sustained growth.

(Source- https://www.ibef.org/economy/indian-economy-overview)

(c) Industry Overview

Global Plastic & Plastic Packaging Market

The global plastic packaging market size is expected to reach USD 536.92 billion by 2033, registering a CAGR of 3.1% from 2026 to 2033, according to a new report by Grand View Research, Inc. The rapid growth of food and beverages, personal care, industrial, and pharmaceutical sectors, coupled with the rising penetration of organized and e-retail across the world, is expected to fuel growth in the market.

Low-density polyethylene (LDPE), Polypropylene (PP), High-density Polyethylene (HDPE), and Polyethylene Terephthalate (PET) are the most widely used materials for the manufacturing of packaging products such as bottles and jars, trays & containers, wraps and films, and pouches, owing to their strong barrier properties against moisture, low cost, lightweight, and extensive functionalities. Growing demand for sustainable products is prompting manufacturers to use recycled plastic resins to make plastic packaging products.

The food and beverage industry has been accounting for the largest revenue share of the market. Globally, the changing lifestyle has led to the introduction of single-serve products that significantly contributed to the growth of plastic packaging in the past few years. Products such as trays, containers, tubs, wraps, pouches, films, and others are extensively utilized in the food and beverage industry for packing ready-to-eat meals, ready-to-eat convenient products, frozen meals, carbonated and non-carbonated beverages, and snack foods.

Plastic packaging products are transparent, lightweight, offer high aesthetic appeal along with robust barrier properties, and are less expensive. These factors are mainly attributed to the widespread penetration of the products in the food and beverages industry. Moreover, in the pharmaceutical industry, packaging products such as jars, syringes, blisters, rigid bottles, pouches, and others are used for packing liquid, semisolid, solid, and powdered products. The pharmaceutical industry in countries like China, India, Mexico, Brazil, and other developing economies is witnessing significant growth due to a higher focus on increasing the life expectancy of the population.

Furthermore, the demand for rigid plastic products is projected to be driven by their applicability and functionality in offering high protection to packaged goods and products. Plastics are long polymer chains making them durable and extraordinarily difficult to break. The rise in the demand for rigid plastic packaging from the healthcare industry to prevent contamination of medicines and from the food and beverage industry is projected to accelerate the segment growth during the forecast period.

(Source- h ttps://www.grandviewresearch.com/industry-analysis/global-plastics-market)

Indian Plastic & Plastic Packaging Market

The India plastic packaging market size was valued at USD 22.44 billion in 2025 and estimated to grow from USD 23.13 billion in 2026 to reach USD 26.89 billion by 2031, at a CAGR of 3.06% during the forecast period (2026-2031). Demand pivots from pure volume to value-added formats as Extended Producer Responsibility (EPR) rules enacted in 2024 place the onus of post-consumer waste on brand owners, pushing converters toward recycled-content resins and higher-margin barrier technologies. E-commerce parcel volumes surged 40% in 2024, triggering a parallel spike in secondary packaging that favors tamper-evident pouches, low-gauge stretch films, and moisture-barrier liners. The sector also benefits from pharmaceuticals shifting to single-dose packs that suit rural health outreach programs, while food and beverage multinationals localize production to serve rapid-delivery channels and comply with food-contact material rules. Regional plastic parks in Maharashtra, Gujarat, and Tamil Nadu compress supply chains, reduce logistics cost, and enable just-in-time inventory for both virgin and recycled feed stocks.

(Source - https://www.mordorintelligence.com/industry-reports/india-plastic-packaging-market)

Global FIBC Market Outlook

The global Flexible Intermediate Bulk Container (FIBC) market continued to witness steady growth during 2025, driven by rising demand from industries such as chemicals, food, agriculture, pharmaceuticals, construction and mining. The Global International trade in FIBCs during 2025 is estimated at over US 1.75 billion, 65% of which is accounted for by imports within the USA, Canada & the EU countries.

India continued to strengthen its position as the leading global supplier of FIBCs across all the three major markets. In 2025, India accounted for nearly 78.2% of FIBC imports in the United States, 50.0% in Canada, and 66.4% in the European Union, highlighting its strong manufacturing base, cost competitiveness, and global supply capabilities.

The global market also witnessed shifting sourcing patterns, with countries such as Vietnam and Bangladesh increasing their market presence, particularly in North America. Similarly, Chinas share in global FIBC exports continued to decline due to changing trade dynamics and tariff-related developments.

Going forward, the FIBC industry is expected to remain positive driven by growth in global trade, industrial packaging demand, supply chain diversification, and preference for sustainable bulk packaging solutions. However, evolving tariff structures and geopolitical developments may continue to influence sourcing strategies across international markets.

Indian FIBC Market Dynamics

According to Straits Research analysis, the India FIBC Market was valued at USD 554.35 Million in 2024 and is projected to reach USD 835.69 Million by 2030, expanding at a CAGR of 7.2% during the forecast period. Key drivers contributing to this growth include increased demand from agriculture, chemicals, and energy industries due to the convenient, cost-effective, and efficient packaging solution provided by FIBC. Industry-specific uses, such as the transportation of sand, fertilizers, grains, and minerals, spur the growth too. Green production and sustainability trends, along with technological advancements, offer lucrative opportunities. Export potential is a major untapped growth avenue. In positioning itself for future growth, India is reinforcing its market presence by leveraging these trends, thereby setting itself up as a significant contributor in the global FIBC market.

(Source - https://straitsresearch.com/vertex/insights/fibc-market/india)

Indias Competitive Advantages in the FIBC Industry

Skilled WorkforceTechnical SuperiorityIntegrated ManufacturingScaleEfficient LogisticsInfrastructure Supportive Government PoliciesStrong Value Proposition(Source- IFIBCA- Indian FIBC Association)

(d) Company Overview

Your Company is an ISO Certified and AA+ level of BRCGS Packaging Accreditation Company engaged in the manufacturing and supply of FIBC, HDPE/PP Bags, HDPE/PP Fabric, Tarpaulin (under the brand name - TIGER TARPAULIN), Ground Cover, Pond Liners, Mulch Films, Laminates, Vermi Beds, Flexible Pipes (under the brand name - COMSYN SWAJAL), Geotextiles, Ground Cover, Nets and other technical textiles products for export and domestic markets. Other range of products are sold under the brand name - COMSYN.

Companys customer base is spread across the globe with major presence in European Union, United Kingdom, United States and Latin America. The majority of sales are through exports which continue to contribute about 70% of sales from manufacturing segment. The Company has also been recognised by Government of India as an Export House.

The Company is continuously doing Research and Development activities to produce best of its products as per the need of customers. The Company offers various packaging solutions for wide range of end users such as Construction, Agriculture, Asbestos Waste Removal, Bulk Packaging, Household Waste Removal, Human Safety, Gardens, Green Houses, Shelter, Grain, Pulses, Animal Food, Seeds, Fertilizers, Chemicals, and Food Products etc.

The Company has been operating as DCA cum CS of ONGC Petro additions Limited (OPaL). During this year this business not only delivered a steady performance but also continued to add value to the Company, in terms of profitability. This segment helps the Company as a source of Raw Material and helps to increase its presence in the national market. Further it also helps the Company to decide its raw material procurement policy and reduction of cost.

The Company has installed the solar power generation plant and also a rooftop solar power plant for generation of electricity for captive consumption. The Company is also using all its wastage generated during the operation and thereby contributing towards the environment.

The manufacturing operation of the Company is being carried out at five manufacturing plants located at Pithampur with the total installed capacity of 27630 MTPA on consolidated basis (including the capacity of wholly owned subsidiary).

The Company has received recognition of its In-House R&D Unit and a Certificate of Registration from the Ministry of Science and Technology, Department of Scientific and Industrial Research (DSIR) vide email dated 30th October, 2025

The recognition has been granted for Techtex Unit. This recognition will further strengthen our focus on research, innovation, and development activities in technical textiles.

The Board has approved the expansion plan by setting up a new manufacturing unit at Plot No. 111, Smart Industrial Park Near Natrip Pithampur Dhar of the Stepdown wholly owned subsidiary, Comsyn International Private Limited (formerly known as Erawat Vegcap Private Limited) with the capacity of 9000 MTPA approx and the expansion of Manufacturing capacity of Techtex (a unit of Commercial Syn Bags Limited) at Plot No. A-12 & A-13, Indore Special Economic Zone, Pithampur Phase II, Dhar, Madhya Pradesh and Unit - SEZ at Plot No B-15 to 18, F-13A, Special Economic Zone Phase I, Pithampur, Dhar, Madhya Pradesh existing manufacturing units of Commercial Syn Bags Limited with the capacity of 3300 MTPA approx.

The Company has done the allotment of 3,87,000 (Three Lakhs Eighty Seven Thousand only) Equity shares of Rs. 10/- each at a premium of Rs.62/- per share to the warrant holder categorised under the promoter group after receipt of balance amount due on 3,87,000 warrants aggregating Rs. 2,08,98,000 (Rs Two Crores Eight Lakhs Nity Eight Thousand Only) against the option exercised by warrant holder for convertible warrants issued on 20th March 2025, on preferential basis.

The Companys expanded manufacturing facility of Unit-Techtex situated at Plot Nos. A-12 & A-13, Indore Special Economic Zone, Pithampur Phase 2, Dhar, Madhya Pradesh has started the Commercial Production from 22nd July, 2026. The capacity added with this expansion is 1500 MTPA and the present total installed capacity is 29130 MTPA on consolidated basis (including the capacity of wholly owned subsidiary).

(e) Strength, Weakness, Opportunities and Threats

The Company has wide range of products in its basket which caters to the customers across the globe. The product portfolio comprises of about 15 different products like FIBC, HDPE/PP Bags, HDPE/PP Fabric, Tarpaulin, Ground Cover, Pond Liners, Mulch Films, Laminates, Vermi Beds, Flexible Pipes, Geotextiles, Ground Cover, Nets and other technical textiles products. Product diversification helps in catering to different markets as per their demands. Your Company is having BIS Certification for separate clean room facilities and the Companys fully integrated food grade manufacturing facility for FIBC is one of the best in India. The Company supplies to various industries like agriculture, construction, food, bulk packaging, chemical, cement and food grade bags. The strong Industry relation is a core strength ofthe Company. The Company focuses on quality and customer satisfaction to maintain long term relationship and to procure repeat orders. There is increased competition due to industry wise capacity addition. The Companys total installed capacity is 29130 MTPA (on consolidated basis including the capacity of wholly owned subsidiary) with the additional enhanced capacity of Techtex Unit and your company has adequate production capacity to meet the increased demand ofthe Customers.

Raw material price volatility, particularly in polypropylene, influenced by crude oil trends and global supply dynamics which can compress margins if not matched by timely price pass-through. Foreign exchange fluctuations and currency instability may impact export margins and pricing consistency. Geopolitical uncertainties which also lead to freight cost volatility and container availability and may impact global shipping and delivery timelines. Evolving international regulatory frameworks around environmental compliance, plastic usage and recyclability standards necessitate further investment and operational adjustments. Working-capital intensity associated with a growing export book, with longer receivable and inventory cycles.

Being a labour oriented industry with high requirement of skilled labour, shortage of labour is a major risk associated with the sector, however the Company has put in place adequate system to monitor labour requirement and have already implemented skilled development training program. Competition from new players within and outside the country is also posing the threat for the company and with the experience of more than three decades in this industry and strong customer relationship your company is able to meet this threat.

Unforeseen geopolitical uncertainties may impact commodity prices and the supply chain in the short-term. As the Company has acquired stake in overseas entity based at United Kingdom, the economy at macro level and per se performance of the acquired entity at micro level may also affect our results.

Despite of all the challenges and threats we are optimistically looking into this opportunities

Increasing global demand for sustainable and flexible industrial packaging, particularly across agriculture, chemical products and food processing segments. The Global China +1 strategy, providing opportunities as international customers favour Indian manufacturers for supply diversification. Potential to expand into a distribution-led downstream model, enhancing closer engagement with end users. Increasing focus on ESG-aligned supply chain and circular packaging solutions, strengthening KPLs position as a responsible global partner. Indias Trade Treaties with most global economies. Indias continuing focus on water conservation and agricultural productivity, supporting growth in the Water Conservation and Agro Polymers verticals.

The Company follows a risk management policy wherein the management keeps an eagles eye view on the markets, both domestic and foreign, related to the products the Company manufactures and the raw materials required. The management also monitors the socio-economic changes worldwide and the changes in the currency fluctuation to minimize the risks. There are no risks which in the opinion of the Board are of the nature that can threaten the existence of the Company. However, the risks inter-se that are generally dealt in regular course of business and have to be taken care of are - economic risk, technology risk, fluctuations in foreign exchange rates and raw material prices which the Company regularly monitors with a proactive approach adopted by the management to evaluate and mitigate these potential risks.

(f) Segment-wise or product-wise performance

The Company operates in three segments i.e.

1. Manufacture and sale of Flexible Intermediate Bulk Container (FIBC), HDPE/PP Bags, HDPE/PP Fabric, Tarpaulin, Ground Cover, Pond Liners, Mulch Films, Laminates, Vermi Beds, Flexible Pipes, Geotextiles, Ground Cover, Nets and other technical textiles products and

2. Trading of Granules

3. Solar Power generation.

The segment for Manufacture and sale of Flexible Intermediate Bulk Container FIBC, HDPE/PP Bags, HDPE/PP Fabric, Tarpaulin, Ground Cover, Pond Liners, Mulch Films, Laminates, Vermi Beds, Flexible Pipes, Geotextiles, Ground Cover, Nets and other technical textiles products and meets the quantitative thresholds and is considered as reportable segment. Financial information of all other segments have been shown in All other Segments.

(g) Future Outlook

Driven by lightweight, customized product features, user-friendly, sustainability advantages and enhanced packaging options the product base of the Company has the potential to maintain positive growth through demand emanating from international as well as domestic industries. In the domestic market, the industry is also envisaged to receive a boost from agriculture, mineral, petrochemical industries and various industrial markets who are opting for FIBC as packaging option. Internationally, the FIBC industry is estimated to demonstrate firm growth driven by demand from new markets like Latin & Central America, Eastern Europe & some parts of Africa. Also, acceptability and increase in usage by the pharmaceutical and food industry across the globe will have positive impact.

(h) Risk and concerns, internal controls systems and their adequacy

The Company is engaged in the business of manufacturing and export of containers and packaging materials, which is associated with normal business risk as well as the imbalance of demand-supply of products in the domestic as well as international market. We are subject to foreign currency exchange rate fluctuations which could have a material impact on our results of operations and financial conditions. There are no risks which in the opinion of the Board are of the nature that can threaten the existence of the Company. However, the risks inter-se that are generally dealt in regular course of business and have to be taken care of are - economic risk, technology risk, fluctuations in foreign exchange rates and raw material prices which the Company regularly monitors with a proactive approach adopted by the management to evaluate and mitigate these potential risks. The Company has a well-defined Policy for Risk Mitigation on foreign exchange by adopting hedging strategies. Global as well as Indian economic and political factors that are beyond our control, influence forecasts and may directly affect our business operations.

The Company has a Risk Management Policy and adequate Internal Control System in place. The main objective of this Policy is to ensure sustainable business growth with stability and to promote a pro-active approach in reporting, evaluating and resolving risks associated with the Companys business. In order to achieve the key objective, this Policy establishes a structured and disciplined approach to Risk Management; in order to guide decisions on risk related issues. Internal Control System is commensurate with the size, scale and complexity of its operations. The Company continuously reviews its various types of regulatory, financial, operational, environmental and other business risks. There are adequate systems to ensure compliance of all various statutory and regulatory requirements and review the same from time to time and to take appropriate actions from time to time. There is a greater demand for Indian products as an alternative to Chinese ones. Further, due to its cost-effectiveness compared to alternative packaging options, plastic bulk packaging is becoming more prevalent.

(i) Discussion on financial performance with respect to operational performance.

The Boards Report has specifically dealt with the subject under the headings Summarized Profit & loss Account and State of Companys Affairs & Review of operations

(j) Material developments in Human Resources / Industrial Relations front, including number of people employed.

We believe that our employees are key contributors to our business success. We focus on attracting and retaining the best possible talent. Our Company looks for specific skill-sets, interests and background that would be an asset for our business.

Many initiatives were taken to support business through organizational efficiency, process change support and various employee engagement programs which has helped the organization to achieve higher productivity level. A significant effort has also been undertaken to develop leadership as well as technical/functional capabilities in order to meet future talent requirement.

As on March 31, 2026 we have 2,684 employees on payroll. Company is committed to provide necessary training / conducts development programmes to imbibe necessary skills required within the employees. The management of the Company enjoys cordial relations with its employees at all levels.

(k) Details of Significant Changes in Key Financial Ratios on Standalone basis

Numerator	Denominator	FY 25-26	FY 24-25	Deviation by >25%	Reasons
Current Ratio	Current Assets / Current Liabilities	1.31	1.51	-12.88	NA
Debt-Equity Ratio	Total Debt / Shareholders Equity	0.65	0.65	-0.23	NA
Debt Service Coverage Ratio	Earnings available for debt service / Debt service = Interest & Lease Payments + Principal Repayments	4.61	1.48	211.09	The ratio has improved as there is increase in net profit with reduction in interest on term loan.
Return on Equity Ratio	Net Profits after taxes - Preference Dividend / Average Shareholders Equity	0.17	0.10	66.12	There is significant increase in net profit in this financial year.
Inventory Turnover ratio	Sales / Average Inventory	4.87	4.66	4.51	NA
Trade Receivables turnover ratio	Total Sales / Avg. Accounts Receivable	7.09	8.09	-12.34	NA
Trade payables turnover ratio	Net Credit Purchases / Average Trade Payables	12.31	15.25	-19.29	NA
Net capital turnover ratio	Net Sales / Average Working Capital	8.02	7.41	8.22	NA
Net profit ratio	Net Profits after taxes / Sales	7.02	4.07	72.56	There is significant increase in net profit in this financial year.
Return on Capital employed	Earnings before interest and taxes / Capital Employed	0.14	0.11	26.62	There is significant increase in net profit in this financial year.
Return on investment	Return on Investment / Average Investment	0.07	0.11	-34.15	Increase in the amount of investment/loan with low profit/(loss) from investment and loan in this financial lead to decline in this ratio.

l) Compliance with Indian Accounting Standards In the preparation of the financial statements, the Company has followed the Indian Accounting Standards as notified. The significant accounting policies which are consistently applied have been set out in the Notes to the Financial Statements.

(m) Cautionary Statement

Statements in this report describing the Companys objectives, expectations or predictions may be forward looking within the meaning of applicable laws and regulations. The actual results may differ materially from those expressed in this statement because of many factors like economic condition, availability of labour, price conditions, domestic and international market, changes in Government policies, tax regime, etc. The Company assumes no responsibility to publicly amend, modify or revise any statement on basis of any development, information and event.

	For and on behalf of the Board
	Anil Choudhary
Place : Indore
	Chairman & Managing Director
Date : 5th September, 2026	DIN : 00017913