DDev Plastiks Industries Ltd Management Discussions

Management Discussion and Analysis Report

Economic Overview¹

Global Economic Review

The global economy in CY 2024 proved to be resilient, with growth holding steady at 3.3% despite ongoing geopolitical tensions, trade disruptions and shifting monetary policies. There is also decrease in inflation, dropping from 6.6% in CY 2023 to 5.7% in CY 20 24². The decline was mainly the result of central banks tightening their policies and a significant boost in energy supply, which helped ease price pressures.

Despite fears of economic slowdowns and potential stagflation, emerging economies have managed to push forward, supported by strong government spending, persistent consumer demand and a growing workforce participation rate. These policies seek to stimulate business investments and improve consumer spending by lowering borrowing costs. Additionally, resilient consumer demand played a vital role in sustaining economic momentum, as household spending remained strong despite prevailing uncertainties. Government spending and targeted fiscal measures further bolstered this steady progress, countering the effects of structural and geopolitical challenges.

Outlook

Looking ahead, the global economic outlook remains positive, bolstered by expectations of more accommodative monetary policies and continued easing of inflationary pressures. It is predicted that the monetary policy relaxation will create a more favourable environment for long-term economic growth. Though obstacles remain, particularly due to ongoing geopolitical uncertainties and structural constraints in important emerging markets like China, experts anticipate that with sustained government support and medium-term fiscal consolidate, there is hope for a more stable and inclusive economic future. Global GDP is projected to sustain a moderate growth rate of 2.8% in CY 2025 and 3.0% in CY 2026, reflecting a stable and sustainable recovery path.

One of the key drivers of this outlook is the resilience of consumer spending, which is anticipated to remain a crucial pillar of growth. With inflation gradually retreating expected to decline to 4.3% in CY 2025 and 3.6% in CY 2026 household purchasing power is set to improve, further buttressing demand across various sectors. Advanced economies are likely to achieve inflation targets sooner, providing additional stability. Furthermore, Asian economies are expected to support international trade, with robust exports of both manufactured goods and services driving growth.

Indian Economy³

During the year under review FY 2024-25, Indias GDP is grew at a rate of 6.5%. Despite global economic turbulence and geopolitical conflicts. Indias economy demonstrated significant resilience.

The services sector, however, remained a major driver of growth. Indias ability to keep its fiscal deficit low which gives the government more financial flexibility to increase expenditures, further supporting demand and economic activity.

Inflation has eased, decreasing from 5.4% in FY 2024 to an encouraging 4.9% in FY 20 25⁴, fostering a more stable economic environment. This downward trend in inflation is bolstering positive consumer sentiment, setting the stage for heightened consumer spending across key retail categories.

Throughout the year, domestic manufacturing activity was mostly driven by initiative such as the China+1 strategy Make in India. In addition to bolstering basic industries, these policies contributed to the expansion of specialised sectors.

Growth has been further accelerated by the governments emphasis on creating a climate that is business-friendly, especially through greater foreign direct investment (FDI) in manufacturing.

Outlook

Overall, the outlook for the Indian economy appears positive. By giving tax relieves which significantly increase disposable income for middle-class households. The retail inflation is also showing signs of easing, which will strengthen the economy as a whole.

The governments emphasis on deregulation, infrastructure and private sector participation is vital for continued growth. Sectors such as retail, e-commerce and digital services are poised to expand with rising incomes and improved connectivity. Indias economy is expected to continue its strong growth in the coming years, driven by a surge in investments and increased government spending.

Industry Overview

Global Polymer Compounding Industry

The global plastic compounding market is anticipated to reach USD 118.81 billion by CY 2032 from a predicted USD 72.95 billion in CY 20 25⁵, growing at a Compound Annual Growth Rate (CAGR) of 7.2%. This growth is largely driven by a surge in research and development efforts aimed at developing customised plastic compounds. As demand for custom solutions in areas like automotive, electronics and packaging rises, the market is expected to expand significantly.

The rapid pace of urbanisation, combined with the growth of industries like automotive, packaging, construction and electronics are key drivers behind the expansion of the plastic compounding market. However, challenges loom in the form of stringent environmental regulations concerning plastic recycling and disposal.

This market continues to thrive, thanks to the expanding automative and construction industries, which are the primary consumers of compound plastics. As these industries expand into new regions, it opens up fresh opportunities for plastic compounders. The Asia- Pacific region, with its automobile manufacturing and massive construction projects, remains the largest and fastest-growing market. While growth may be slow in saturated developed markets, the rapid economic development in Southeast Asia, India and China provides lucrative prospects for companies looking to strengthen their foothold.

A major hurdle for broader product adoption is the call for localisation. The market itself is quite fragmented. To stay ahead, leading companies are increasingly turning to mergers and acquisitions to gain greater market reach and broaden their geographical footprint.

Technological innovation remains crucial for manufacturers looking to develop customized solutions with superior properties for industries like electric vehicles, renewable energy, healthcare and consumer goods. Companies that focus on developing specialised formulations for niche markets, such as cables and medical devices are likely to outperform broader competitors.

Polymer by Product

Polyethylene (PE) is anticipated to account for 18.5% of the market in 20 25⁶ due to its adaptability and wide range of applications, whether it is low-density polyethylene (LDPE), high-density polyethylene (HDPE) or linear low-density polyethylene (LLDPE). Known for their strength, flexibility, clarity, toughness and chemical resistance, PE polymers are extensively used in products like packaging films, plastic bags, containers, pipelines, geomembranes and wire coatings.

Polymer by Application

The automative industry remains the leading sector in the application segment, expected to account for about 38.6% market share by 2025⁷. This is due to the rising global vehicle production and the increasing demand for higher performance and quality in automotive components.

The single largest contributor to global plastic demand is transportation because of the rising number of vehicles in developing economies and replacement of metals with lightweight plastics. The use of thermoformed and injection moulded plastic components helps lower vehicle weight, which in turn enhances fuel efficiency as per stringent emission regulations.

Polymer by Region

The Asia Pacific region is set to lead the market, capturing 45.2% of the market share⁸. This is due to the regions strong industrial base in sectors such as automotive, packaging, construction as well as electrical and electronics.

Global Wire and Cable Industry

The cables and wires market has seen impressive growth recently, with projections indicating a steady rise from US$ 244.18 billion in CY 2024 to US$ 259.61 billion in CY 2025, at a CAGR of 6.3%.⁹ This growth is fuelled by several factors, including the expansion of the automotive industry, increased demand for telecommunications, power transmission networks, the rise in consumer electronics and a thriving manufacturing sector.

Wire and Cable Compound Market Analysis by Function

The insulating function held the largest share in the global wire compound and cable compound market. Wire compound and cable compounds provide high-quality insulating and jacketing to conducting materials. By providing protection from environmental hazards like heat and moisture, the wire and cable compounds insulating function maintains the integrity of the wiring material. The longevity and efficacy of a wire are determined by its insulation function, which makes them the perfect choice for electrical, household, and automobile wiring. By preventing electrical leakage, insulation in wires and cables keeps the current from coming into touch with adjacent wires and cables. In the wire compound and cable compound industries, these characteristics are opening up opportunities for the insulating function of wires.

Wire and Cable Compound Market Analysis by Type

The wire and cable compounds market are split between thermoset and thermoplastic compounds, with thermoplastics taking the lead. Their affordability, ease of processing and flexibility make them the go-to choice for applications like automotive wiring, telecommunications and power cables.

Thermoset compounds, however, are gaining traction in sectors like aerospace and heavy industry where higher heat resistance and durability are essential. Additionally, there is a growing demand for specialised compounds like halogen-free and flame-retardant options as environmental and safety concerns rise.

Wire and Cable Compound Market Analysis by End Use Industry

The construction industry has become the largest user of cables and wires, due to Indias rapid urbanisation, along with the expansion of industries such as IT, telecommunications, power transmission, consumer electronics and automotive. The surge in electrical appliance installations across both commercial and residential spaces has bolstered the demand for wiring in construction projects. For power distribution and control systems, a significant amount of wiring and cabling is needed during the construction of residential and commercial buildings. Additionally, the rise in renewable energy projects, such as solar and wind farms is fuelling the need for specialised wiring solutions.

Wire and Cable Compound Market Analysis by Geography

The Asia-Pacific region is envisioned to lead the wire and cable compound market. Factors such as the elevated demand in construction industry, the heightened demand for energy and expanding clientele in countries like India, China and The Association of Southeast Asian Nations (ASEAN) are further buttressing the growth in the market. Advancements in communications technology are also major contributor to the growing market for wire and cable compounds. Residential development projects have been escalating in nations like China, India and Vietnam, which will further bolster the demand for wire and cables.

Global Cross-Linked Polyethylene (XLPE) market¹⁰

The global cross-linked polyethylene (XLPE) market is poised for robust growth, driven by escalating demand across energy, construction. The market is projected to expand from USD 6.48 billion in 2024 to USD 6.91 billion in 2025, reflecting a CAGR of 8.2%. Asia- Pacific lead this growth, fuelled by rapid urbanization, infrastructure development, and significant investments in renewable energy projects, particularly in countries such as China and India. The regions focus on upgrading grid infrastructure and the increasing adoption of electric vehicles are further enhancing XLPE demand.

Benefits of XLPE in cable and wire industry¹¹

Enhanced

Thermal Properties:

Interconnected XLPE, often known as polyethylene, is a thermoset insulation material with superior thermal qualities. The process of crosslinking strengthens the links between the polymer chains by altering the molecular structure of polyethylene. This can be achieved chemically by adding silane or peroxide to create free radicals that create crosslinks, or physically by exposing the polymer to high- energy electron beams or microwave radiation. Despite its good dielectric strength, high insulation resistance, and low dissipation factor across frequencies, polyethylene has a limited temperature range. Through crosslinking, PE becomes into XLPE, increasing its temperature endurance without sacrificing its electrical properties.

Electrical

Performance:

XLPE excels in a variety of voltage applications, ranging from low to extra high voltage, outperforming insulation materials such as PVC, Ethylene Propylene Rubber (EPR), and silicone rubbers. The process enhances the materials resistance to chemicals and oils, even at elevated temperatures, making XLPE an outstanding Low Smoke Zero Halogen (LSZH) material.

Mechanical

Strength:

The mechanical properties of XLPE outshine those of many other insulation materials. It boasts higher tensile strength, elongation, and impact resistance. Introducing carbon black to XLPE can further bolster its resistance to hot deformation and cutting. Unlike some other insulating materials, industrial automation cables made from XLPE do not melt or drip at high temperatures, such as those experienced when using soldering irons. Additionally, XLPE has improved flow resistance and better aging characteristics.

Water-Tree

Resistance:

One of the main benefits of XLPE insulation compared to regular polyethylene (PE) is its superior resistance to water treeing. Water treeing is a defect caused by imperfections in the insulation, leading to the formation and growth of fracture lines in the direction of the electric field, intensified by electrical stress. The enhanced structure of XLPE significantly minimizes the occurrence of water treeing, making it a dependable choice for low voltage (LV) and medium voltage (MV) cables.

Indian Polymer Compounding Industry

The size of the Indian wire and cable market is projected to be USD 21.22 billion in 2025 and USD 32.85 billion by 2030.¹² Which is driven by a number of reasons, such as growing renewable energy output, smart grid technology reserves, industrialisation and government efforts. This sector, which is crucial to energy distribution and telecommunications, is expanding remarkably and is expected to continue this trend in the years to come.

The demand for wires and cables has witnessed remarkable amplification owing to the countrys aggressive renewable energy targets and heightened awareness about the potential of renewable energy sources like solar and wind power. A top-notch cabling system is required for photovoltaic (PV) projects in solar power plants in order to connect all electrical components with the least amount of energy loss. Indias substantial rise in solar panel production has resulted in a significant increase in the demand for solar cables.

There is a notable urbanisation trend in India. By 2031, Indias urban population is expected to reach 600 million, according to the Union Ministry of Housing and Urban Affairs. The requirement for housing wire is escalating as a result of the augmented demand for new dwelling units brought on by this demographic boom. In particular, the electrical wiring of these new urban homes today typically use 90 mm housing wire, which is well-known for its versatility and effectiveness in residential settings.

Outlook

The outlook for Indias wires and cables industry is robust, driven by the countrys ambitious infrastructure development, rapid urbanization, and strong government initiatives in power and renewable energy. Also, the expansion of solar and wind power projects, with solar installations alone demanding millions of kilometers of specialized cable to meet national capacity targets. The governments Revamped Distribution Sector Scheme (RDSS), with a significant outlay through FY 2025-26, is set to modernize and strengthen the power distribution infrastructure, further fuelling demand for low-voltage and specialty cables in both commercial and residential construction sectors

Technological advancements and the push for digitalization are also shaping the industrys direction. The increasing need for high-speed data transmission is increasing the adoption of hybrid and specialty cables. However, the industry faces challenges from fluctuating raw material prices and supply constraints, particularly for copper and aluminium, which could impact cost structures and supply chains. Despite these headwinds, the sectors strong fundamentals, ongoing investments, and policy support position it for sustained growth and innovation.

Technological Advancements and Modernisation

Specialised cables, such as fibre optic and fire-resistant wires are witnessing augmented demand owing to rapid digitisation and incorporation of advanced technologies by numerous industries. Companies prioritising research and innovation are strategically placed to capitalise on the heightened demand.

Rising Focus on Export Opportunities

Manufacturers in India are increasingly aiming for global markets. Competitive pricing and higher quality standards are further bolstering the global demand for wires and cable goods manufactured in India.

Rise in Renewable Energy Projects

Specialised cables play a pivotal role in the transmission of renewable energy. The demand of specialised cables is set to witness significant enhancement as the governments prioritise and promote transition to green energy solutions, such as solar and wind energy.

Increasing Focus on Innovation and reliability

The leading companies catering to the wires and cables market are placing significant emphasis on innovation by developing cutting-edge products such as multi-core optical fibre and cables. These advanced additions to their product portfolio are more reliable and offer notable speed enhancements. A specific kind of optical fibre that has several separate optical fibre cores inside a single cable structure is called a multi-core optical fibre and cable.

Advancements in Technology

With the market witnessing increased focus safety and sustainability, the demand for advanced and smart cable options which are sustainable and equipped with cutting-edge features is on the rise.

Company Overview

Ddev Plastiks Industries Limited is one of Indias largest manufacturers of polymer compounds, with a rich legacy of over four decades. With an installed capacity of 2,33,400 metric tonnes and a diverse portfolio, the Company has a footprint in over 50+ countries. The company has five manufacturing sites equipped with cutting- edge Research and Development (R&D) facilities, infrastructure and technology. The company is also the largest and most prominent producer of Cross-Linked Polyethylene (XLPE) compounds in India. Its product line has also expanded to include Halogen-Free Flame Retardant (HFFR) compounds and High Voltage Polyethylene (PE) based cable compounds.

Product wise operational performance:

Product wise, the company is engaged in manufacturing of the following products, the performance of which is discussed below:

Poly Vinyl Chloride

Polyvinyl Chloride is widely used across various sectors including electrical wiring, the construction industry, footwear manufacturing, and the automotive sector. The turnover from Poly Vinyl Chloride is INR 30,617.86 lakhs as against INR 29,832.16 lakhs in the previous year.

Polyethylene

Polyethylene, is utilized in a broad range of applications such as packaging, wires and cables, construction materials, consumer goods, and the automotive industry, among others. The turnover from Polyethylene is INR 2,22,931.97 lakhs in the year under review as against INR 2,05,292.09 lakhs in the previous year.

Others

The other products of the company are polycarbonate compound, polypropylene compound etc. the turnover from these items is INR 6,782.54 lakhs as against INR 8,000.13 lakhs in the previous year.

Company Performance

• The Company achieved highest-ever revenue of INR 2,603 crores in FY 2025 with 81% capacity utilization across five strategically located plants.

• It operates five modern plants on both east and west coasts, minimizing freight costs, and developed a world-class R&D facility in collaboration with IIT and UICT, Mumbai.

• The Company became and maintained net debt-free status, achieved listing on the National Stock Exchange, and received NTPC approval for 3.3 kV insulation products.

• The Wire & Cable segment remains central, with strong domestic demand and export recovery expected.

Financial Highlights

			(in INR lakhs)
Serial No	Particulars	FY 2024-2025	FY 2023-2024
1	Gross turnover	2,60,332.37	2,43,124.37
2	PBIDT	28,697.00	28,190.23
3	Profit Before Tax	25,064.30	24,465.62
4	Operating Profit	27,193.58	26,770.45
5	Capital Structure	1,034.76	1,034.76

Key financial ratios

Serial No	Particulars	FY 2024-2025	FY 2023-2024	Change(%)	Reason for change
1	Debtors Turnover Ratio	6.02	6.39	-5.79	NA
2	Debt Equity Ratio	0.06	0.10	-40	Due to Reduction in working capital investment leading to improved cash flows used for debt reduction of the Company
3	Current Ratio	3.01	2.42	24.07	NA
4	Interest Coverage Ratio	12.48	11.23	11.13	NA
5	Debt Service Coverage Ratio	12.80	12.11	5.68	NA
6	Stock Turnover Ratio	11.63	11.49	1.22	NA
7	Return on Equity (ROE) (%)	24.82	31.48	-21.16	NA
8	Operating Profit Margin (%)	10	11.01	-9.17	NA
9	Net Profit Margin (%)	7.12	7.47	-4.69	NA

Future Outlook

Ddev Plastiks industries Limited has demonstrated robust operational and financial performance, positioning itself as one of the largest manufacturers in the polymer compounding industry. The company achieved record-high volumes and capacity utilization, supported by its strategically located manufacturing facilities and a strong focus on research and development. Its commitment to innovation, capacity expansion, and sustainability has enabled to navigate global uncertainties and capitalize on strong domestic demand, particularly in the high-growth Cables and Wire segment. The companys net debt-free status, improved credit ratings, and successful listing on the National Stock Exchange further reinforce its solid financial foundation and market credibility.

It is well-positioned to sustain its growth momentum by expanding its product portfolio, increasing manufacturing capacities, and exploring new export markets. The companys strategic initiatives, such expanding XLPE compounds for high-voltage cables and strengthening its presence in both domestic and global markets, are expected to drive volume and revenue growth in the coming years. With favorable macroeconomic trends, continued investments in infrastructure, and the resilience of key sectors like real estate and power, it is poised to deliver sustainable value to stakeholders while maintaining healthy margins and operational efficiencies.

Key Market Drivers Include:

Advancement in Technology:

Technological advancements in the communication sector are set to augment growth in the cable and wire market. Compared to conventional coaxial connections, fibre optic cables enable larger bandwidths and faster data transmission. Developments in fibre optic networks, increased investment in high-capacity network infrastructure and wired broadband technologies will further bolster the demand for top-tier fibre optic cables. The Company is strategically positioned to capitalise on this opportunity and cater to the amplified demand.

Growing Real Estate Development

The considerable expansion of the real estate sector and a steady rise in commercial and residential development is further elevating the demand of both contemporary networking cables and conventional wiring.

Policy and Regulatory Support

The wire and cable industry benefited from continued government support through infrastructure development. The Production-Linked Incentive (PLI) scheme for electronics and power sectors indirectly boosted demand for specialized cables. Additionally, policy emphasis on renewable energy and "Make in India" further increased domestic manufacturing and investment in the industry.

Rising Industrial Automation: The market for wires and cables is envisioned to grow due to the rising need for industrial automation. Using a variety of technologies and control systems to run and manage industrial machinery and processes with little assistance from humans is known as industrial automation. Industrial automation requires a complex network of cables for data transmission, power distribution and control. In order to meet this unique requirement customized and the specialized cables are designed for the automation

Market Restraints Include:

Price Volatility of Raw Materials.

The price volatility of raw materials, particularly copper and aluminium, is a major threat to the market of electrical wire and cable. These metals are highly susceptible to market fluctuations caused by global economic conditions, regional instability and imbalances in supply and demand.

Intensive Competition in the Market

There are many domestic and international competitors in the fiercely competitive wire and cable compound market. In order to differentiate products and keep a competitive edge, constant innovation is required.

Market opportunity include:

Technological Advancements and Modernization

The need for specialty cables, such fibre optics and fire-resistant wires, is increased by the move towards digitalization and smart technology in a number of industries. Research and innovation-focused companies are in a good position to meet these new demands.

Renewable Energy Focus

Investments in renewable energy projects have expanded as a result of the governments strong emphasis on sustainable energy sources like wind and solar power. A robust market for sophisticated wires and cables is created by the increase in demand for effective power transmission systems.

• Ddev Plastik Industries Limited improved investor

confidence and visibility by listing on the NSE.

• Strong market position in the domestic market particularly in high voltage products.

• Diversified product portfolio, operating in 5 high growth categories.

• Strategic geographic presence helps in optimising logistics and reducing costs.

• Robust financial performance with revenue increasing year on year.

• Strong domestic demand across infrastructure, real state and renewable sectors.

• The government budget and policies place a strong emphasis on capital expenditures in industries like renewable energy, power and defence.

• Long term partnership with major suppliers to ensure steady raw material availability.

• The primary weakness will result from the slowdown in the Indian economy.

• Slow adoption of HFFR (Halogen Free Flame Retardant) Compound in residential construction due to lack of awareness.

• Supply chain disruption due to high freight costs and shipping disruption.

• Government policies and guidelines set for industries, factories and manufacturing units are strict, obligatory and require compliance.

Strengths

Weaknesses

Opportunities

• Expansion into new segments, increased capacity in PVC Compounds, and further growth in HFFR and XLP segment

• Indias renewable energy boom will propel the demand for power cables and polymer compounds.

• Growing export potential, decreasing freight rates will help regain export market share, particularly in the US, the Middle East and Africa.

• Long-term demand for polymer compounds will be bolstered by government infrastructure projects and higher budgetary allotments for power and defence.

• Technological advancements, development of new compounds for high-voltage applications will enhance the companys product mix.

• The government is also investing more funds in Indian railway projects which creates demand for wire and cable that will help the market to further grow.

• The demand for durable, corrosion-resistant and easy- to-install materials for piping and profiles is driving the adoption of plastic compounds.

• The demand for lighter, more fuel-efficient vehicles has heightened the demand for high-strength polymers made through plastic compounding.

Threats

• Price fluctuations for volatile raw materials, such as polymers and petrochemicals might affect margin.

• There is fierce competition, with global rivals like Dow and LG growing their capacities and market share.

• Compliance with strict environmental norms and raw material sourcing regulation could impact operation.

• Global Economic Slowdown: War, economic slowdowns and geopolitical unpredictability may have an impact on exports and demand.

• The need for current polymer compounds may decline as a result of technological disruptions, new material developments, or alternative technologies.

Risks and Concerns

Type Of Risk	Risk particulars	Mitigation strategy
Business Risk	Business risks, such as, volatile raw material prices, currency fluctuations and mismatch of demand and supply have the potential to impede Companys stability.	Ddev Plastiks examines raw material costs and processes to obtain the finest bargains. The business believes that in order to ensure the ongoing supply of vital raw materials, suitable contracts and obligations must be negotiated. The business additionally monitors external factors and employs meticulous inventory management to lower these risks.
Technology risks	Technological risks associated with quality up gradation and product obsoletion can negatively impact the Company.	Ddev Plastiks is more effective because of its sophisticated internal research skills. The business also pays close attention to ongoing customer feedback in order to improve and adapt to changing needs.
Revenue risks	Lower revenues, increased costs, loss of clients as well as intense competition from unorganised industry players and imports can affect the financial stability of the Company.	Ddev Plastiks provides excellent services to guarantee customer satisfaction in order to mitigate these risks. The company has established a devoted clientele and retains a strong market position by adhering to stringent quality standards and long- lasting partnerships. In terms of costs, facilities that are positioned strategically have decreased transportation costs.
Human resources risks	Since a companys human resource is its most valuable asset, it is critical to hire and retain qualified personnel to help the organisation reach its goals and minimise the chance of losing out on potential applicants. To improve employees competency and expertise, its also critical to develop their talents.	The important functions and positions of the personnel are identified by Ddev Plastiks through a methodical talent management procedure. To help employees improve their skills and knowledge, numerous skill enhancement training programs are offered.
Foreign exchange risks	The company operates in foreign markets. Any changes in exchange rates may have an effect on the companys profitability.	To reduce potential risks brought on by erratic currency changes, Ddev Plastiks depends on careful and regular hedging. The business stays away from foreign exchange loans. It is expected that a strong focus on exports will yield results that are balanced.
Cyber security risks	Cyber security concerns related to data loss can compromise privacy and data security. Cyberattacks, may ultimately result in information leakage or improper use of the companys cloud network data.	Ddev Plastiks has put in place procedures and technologies for multilayer cyber security, as well as rules to protect data. The company is protected from cyberattacks and data leaks by putting strong security measures in place, including automated periodic data backups and a disaster recovery plan.
Credit risks	For the business to prevent payment failures and client credit risks, it is essential to maintain credit-related elements effectively.	Ddev Plastiks, which flaunts a strong working capital, regularly reviews the receivable insurance policy covering export sales as well as all contracts with banks and financial institutions
Liquidity risks	Liquidity risks can expose the Company to cash flow deficiencies and payment defaults.	Ddev reduces associated risks and guarantee seamless business operations by evaluating working capital components, closely monitoring corporate financing strategies, using working capital effectively, and having stable financing arrangements in addition to strong cash flow.
Workplace accident/ Incident risks	Accidents may also confer increased risk for occupational injury.	Ddev Plastiks makes use of insurance policies to reduce losses. The Company regularly evaluates safety protocols and ensures identification and mitigation of potential hazards, by regularly maintaining plants and machinery
Economic risks	Economic risks that could impair the companys operational effectiveness include supply chain disruptions, rising inflation and changes in global geopolitics.	These risks have been countered by the Company through their varied product offerings and strong market presence.
Dependency risks	Dependence on specific sectors or industries may affect the companys operational effectiveness.	Ddev Plastiks enjoys a dedicated client base and has an established market reputation.
Market presence risks	Due to its competitive operating environment, the company is susceptible to market risks that could impact its long-term viability and profitability.	Entry obstacles have been formed by the companys strict and drawn-out licensing requirements. Furthermore, well-placed facilities have guaranteed the effective transportation of raw materials and goods.

Internal Control System

The Company consistently endeavours to enhance its internal control systems and processes to ensure smooth and efficient business operations while adhering to relevant laws and regulations. It maintains a comprehensive delegation of authority to facilitate effective decision-making. Detailed guidelines for accounting preparation are strictly followed to ensure consistent compliance.

Additionally, each key functional area operates under specific operating manuals. Regular and thorough internal audits are conducted by experienced accounting firms in close coordination with the Companys accredited officials to ensure the integrity of all internal control systems and checks and balances. The internal financial controls undergo periodic review, specifically ensuring by internal auditors that the Companys internal financial controls, including operational controls, are adequate and functioning efficiently in all significant aspects.

Accounting Treatment

The financial statements of the Company for the financial year ended March 31,2025 were prepared in accordance with IND-AS which are the prescribed Accounting Standards.

Environment, Health and Safety

The Company remains firmly committed to upholding the highest standards of environmental sustainability, occupational health, and workplace safety. During FY 2024-2025, the company strengthened its EHS framework through regular safety audits, employee training programs, and compliance with all statutory regulations. Initiatives were undertaken to minimize environmental impact by reducing emissions, optimizing resource utilization, and ensuring responsible waste management. A strong safety culture was promoted across all operational sites, with continuous monitoring and swift corrective actions ensuring a safe and healthy work environment. These efforts reflect its dedication to protecting its employees, communities, and the environment while enabling responsible growth.

Human Resource and Industrial Relations

The companys HR procedures and policies are intended to establish an inclusive and diverse work environment that supports ongoing education, professional advancement and development. The Company has employed a total of 400 permanent employees which help the company to grow further.

The Company continued to strengthen its human capital by encouraging a culture of performance, innovation, and inclusivity. The company emphasized employee engagement, upskilling, and talent retention through targeted training programs and leadership development initiatives. With a focus on aligning HR strategies with business goals, it successfully optimized workforce productivity. Strategic hiring across departments supported business expansion, while employee well-being remained a core priority through various health, safety, and welfare initiatives. These efforts have collectively contributed to a resilient, agile, and future-ready workforce poised to support the companys long-term vision.

Cautionary Statement

Some statements in the management discussion and analysis report regarding the Companys objectives, projections, estimates and expectations may qualify as forward-looking statements as per applicable laws and regulations. Actual results could significantly differ from those expressed or implied. Key factors that could impact the Companys operations include economic conditions affecting demand, supply and pricing in both domestic and international markets where the Company operates, as well as changes in government regulations, tax laws, natural disasters and other factors beyond the Companys direct control.