G M Polyplast Ltd Management Discussions

Global Market Scenario of Economy: 2024-2025

In summary, while the global economy demonstrates resilience in the face of past shocks, the medium-term outlook remains "steady but slow." Persistently high debt, disinflationary pressures, trade fragmentation, and structural bottlenecks are key themes for 2024–25. 2024–25 was shaped by an intersection of geopolitical shocks, an unprecedented election cycle, moderating but stubborn inflation, and substantial policy transitions. e global economy sustained modest growth and avoided widespread recession, but uncertainty remained high. e overall impact was elevated risk for businesses and investors, subdued public and private investment, and heightened caution regarding international trade and supply chain resilience.

Lese dynamics are expected to continue influencing the global outlook into 2025-26 and beyond. e IMF emphasizes the need for prudent fiscal and monetary policies, as well as renewed efforts to foster investment and structural reforms, to support stable and sustainable growth._

Indian Plastic Industry: 2023-2024 Overview

The Indian plastic industry demonstrated resilient growth and ongoing transformation through out the fiscal year 2024 25, reinforcing its role as a key contributor to national economic development. This sector remains a critical supplier to diverse industries, including automotive, construction, agriculture, healthcare, packaging, and fast-moving consumer goods (FMCG).

In 2024, the Indian plastics market was valued at approximately USD 44.0 billion and is projected to sustain a robust compound annual growth rate (CAGR) of about 6.4% over the next decade, reaching USD 77.0 billion by 2033. The sectors expansion is fueled by escalating domestic consumption, the continuing boom in e-commerce and urban infrastructure, as well as increasing export demand. Packaging continues to be the dominant application segment, accounting for over 40% of market share in 2024. Growth in this segment is driven by demand for lightweight, durable, and cost-efficient solutions catering to food packaging, consumer durables, and online retail.

Automotive, construction, and electronics also represent significant end-use segments, as plastic materials enable innovation in light weighting, energy efficiency, and low-cost manufacturing. The adoption of engineering plastics and technological advances such as automation, high-performance composites, and sustainable materials are further strengthening the industrys competitiveness.

On the trade front, the government of India has set ambitious goals—targeting plastic exports of USD 25 billion by 2025—supported by production-linked incentive (PLI) schemes, expansion of polymer capacities (notably in Gujarat and Maharashtra), and efforts to reduce the import dependency for raw materials. While exports show potential for growth, manufacturers face ongoing challenges from volatile feedstock prices and global demand fluctuations.

The sector also faces increasing scrutiny regarding environmental sustainability. Notably, the industry is witnessing rapid growth in biodegradable and recycled plastics (CAGR ~12.3% for bioplastics). Regulatory measures such as Extended Producer Responsibility (EPR) and Swachh

Bharat initiatives are driving investments in recycling facilities and incentivizing eco-friendly alternatives. Companies are committing to higher recycling rates and the adoption of greener manufacturing processes.

Micro, Small, and Medium Enterprises (MSMEs) remain the backbone of this industry, contributing substantially to both production volume and employment generation. The MSME sectors adaptability—particularly in rural and semi-urban locales—has bolstered supply chain resilience, even amid global and domestic uncertainties.

In summary, the Indian plastic industry in 2024–25 is on a robust growth trajectory, supported by strong domestic demand, proactive government policy support, export ambitions, and a deepening focus on sustainability. The outlook is positive, with continued investments in technology, scale, and sustainability expected to secure the industrys role as a growth engine for the broader economy.

Company Outlook And Performance:

Over the past year, our unwavering dedication to quality, operational excellence, and customer satisfaction has once again propelled G M Polyplast Limited to new heights. Despite a dynamic and competitive environment, our focused strategies and agile execution have enabled us to consolidate our market leadership while charting a path for sustainable future growth. During the Financial Year 2024–25, the Company achieved a notable increase in turnover, reaching 96.16 crore ( 961.6 million), compared to 92.02 crore in the previous year. This growth demonstrates our strong market positioning and the trust placed in us by our valued customers. Profit after tax (PAT) also rose to 7.44 crore, up from 7.09 crore in FY 2023 24, while earnings per share (EPS) stood at 5.53, reflectingboth operational efficiency management. We attribute this robust performance to our focus on product innovation and market alignment, ensuring that our offerings remain relevant amid evolving industry requirements. Rigorous cost controls, resource optimization, and supply chain management have supported our strong margin profile and financial stability. Furthermore, with a healthy current ratio of 4.8, and strong net worth, we are well-equipped to pursue new business opportunities and withstand market fluctuations.

The outlook for the Company remains highly promising. Our continuous emphasis on R&D, product diversification, and sustainable manufacturing practices positions us strongly to capture emerging opportunities across key sectors such as pharmaceuticals, packaging, and interior solutions. Moreover, our expanding relationships with strategic partners and unwavering commitment to responsible growth will drive further diversification and reach. As we look ahead, the entire G M Polyplast team is united in our pursuit of excellence. We remain committed to delivering superior value to our customers and stakeholders, upholding the highest standards of governance, and reinforcing our reputation as an industry trailblazer. We are confident that the solid foundations laid in recent years will serve as a catalyst for a brighter, more successful future.

Opportunities and Threats of the Plastic Industry in the Indian Market

The Indian plastic industry in 2024-25 continues to offer significant growth opportunities driven by strong domestic consumption, expanding export markets, and continuous technological advancements. Valued at approximately USD 44 billion in 2024, the sector is expected to grow at a compound annual growth rate (CAGR) of over 6.4% through the coming decade, fueled largely by booming segments such as packaging, automotive, construction, and consumer goods. The rapid rise of e-commerce and retail sectors is further propelling demand for lightweight, durable, and cost-effective plastic packaging solutions. Government incentives like the ‘Make in India initiative and production-linked incentive (PLI) schemes, alongside the development of Plastic Parks, are enhancing manufacturing capacity and export competitiveness. Increasing adoption of engineering plastics and innovations in bioplastics and recycling technologies also present promising avenues for specialization and sustainable growth in an increasingly environmentally conscious market.

However, the industry faces notable threats that require careful navigation. Environmental concerns and tightening regulations around plastic waste management demand higher investments in sustainable materials, waste recycling infrastructure, and compliance mechanisms, which could elevate operational costs. Volatility in raw material prices, largely linked to fluctuationsin petrochemical feedstocks, introduces uncertainty in cost structures and profitability. Infrastructure gaps, such as underdeveloped hinder scaling and technological adoption. Trade uncertainties, protectionist policies in key export markets, and currency volatility also pose risks to international growth ambitions. Additionally, intense competition in a fragmented market restricts pricing power and capital investment for smaller players. Addressing these challenges through innovation, sustainability commitments, and strategic investments will be crucial for companies to capitalize on industry opportunities while mitigating risks in the evolving Indian plastics landscape.

Risk and Concerns of the Plastic Industry in the Indian Market

The Indian plastic industry faces significant risks and concerns, primarily stemming from environmental and regulatory challenges. India generates approximately 9.3 million tonnes of plastic waste annually, making it the largest plastic polluter in the world, contributing about 20% of the global plastic pollution. Despite some progress, around 19% of this plastic waste remains uncollected and is often openly dumped or burned, resulting in severe environmental hazards such as waterway blockages, urban flooding, and marine ecosystem degradation. Additionally, open burning of plastics releases toxic chemicals like dioxins and furans, posing serious health risks, including respiratory diseases and cancer for communities, particularly in urban and rural areas. The widespread presence of microplastics in water and soil threatens agricultural productivity and food safety. Indias informal sector recycles a large part of plastic waste but operates under hazardous conditions with inadequate social protection, exposing workers to health and safety risks. Furthermore, only a fraction of producers comply with mandatory

Extended Producer Responsibility (EPR) norms, undermining efforts for effective plastic waste management sustainability and .

On the regulatory front, while India has implemented bans on single-use plastics and strengthened Plastic Waste Management Rules, enforcement remains weak and inconsistent. Key concerns include inadequate waste management infrastructure, low recycling rates (estimated around 8–11%), and a lack of comprehensive traceability and accountability across the plastic lifecycle. Persistent volatility in raw material prices, supply chain disruptions, and global trade uncertainties add financial and operational risks for manufacturers. Additionally, growing public and governmental pressure to reduce plastic use and increase sustainability investments is causing cost and compliance challenges within the industry. Addressing these risks requires coordinated action between the government, industry participants—including companies like G M Polyplast Limited—and communities to improve collection systems, adopt circular economy practices, enhance worker protections, and innovate in sustainable materials adoption.

Internal Control Systems and their Adequacy:

G M Polyplast Limited has established a comprehensive internal control framework that is documented and consistently implemented across all functions. As part of this system, the Company formulates an annual business plan and develops detailed quarterly budgets for revenue and capital expenditures. Actual operating performance is closely monitored against these budgets, and any variances are promptly analyzed and addressed to ensure effective financial and operational management.

To maintain the robustness of controls, the Company has engaged an independent firm of Chartered Accountants to carry out periodic internal audits. This audit process encompasses all key activities and departments within the organization. The findings and recommendations from the internal audit reports are submitted on a half-yearly basis to the Audit Committee of the Board of Directors. The Committee reviews these reports thoroughly to ensure compliance with established procedures and to strengthen the overall internal control environment.

Discussion On Financial Performance with Respect to Operational Performance:

The Directors confirm that there have been no events or circumstances since the date of the last financial statements which materially or adversely affect or are likely to affect the profitability of our Company, or the value of our assets, or our ability to pay liabilities within next twelve months except as below: The company achieved Net revenues for the year 2024-25 at INR. 96.16 Crores as against. INR. 92.01 Crores during the previous year.

Details of Significant Changes in key financial ratios, along with detailed explanations therefor, including:

The following are the ratio during the year under review

Sr. No. Particulars	Ration/ % for the year 2024-25	Percentage Change	Explanations for significant changes in the Ratios
1 Debtors Turnover	4.80	(10.41)	The variance is due to an increase in credit sales without corresponding cash inflows has likely extended the average collection period, reducing the turnover ratio.
2 Inventory Turnover	6.15	(14.77)	The variance is due to increase in inventory. However, the sales has increased but due to slow demand the inventory is piled up.
3 Debt Service Coverage Ratio	16.00	195.98	The variance is due to increase in PBT and due to reclassification of the cash credit facility to bank balance, resulting in a major deviation.
4 Current Ratio	4.80	20.25	The variance is due to increase in current assets and decrease in current liabilities.
5 Debt Equity Ratio	0.01	(42.94)	The variance is due to repayment of borrowings and increase in profit.
6 Operating Profit Margin (%)	17.28	1.87	Revenue has increased, while material and other manufacturing costs have risen moderately, resulting in a slight improvement in the operating profit margin.
7 Net Profit Margin (%)	7.74	0.64	Revenue has increased, while all costs have risen moderately, resulting in a slight improvement in the net profit margin.

- Current year RONW is 26,43% as compared to previous year 26,43%; i.e. a difference of (8%)

Cautionary Statement: in the Management Discussion and Analysis and Boards Report describing the Companies Strengths strategies projection and estimate are forward looking and progressive within the meaning of all applicable laws and regulation. Actual results may vary depending upon the various aspects of the economic such as Government policies Rules and Regulations economic conditions and other incidental factors. Important factors that could make a difference to our Companys operations include raw material availability and prices cyclical demand and pricing in our principal markets changes in government regulations, tax regimes, economic developments within India and other incidental factors Management will not be in any way responsible for the actions taken based on such statements.

CHIEF EXECUTIVE OFFICER (CEO)/ CHIEF FINANCIAL OFFICER (CFO) CERTIFICATION

[Pursuant to Regulation 17(8) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015] To, The Board of Directors, G M Polyplast Limited (Formerly known as G M Polyplast Private Limited)

We have reviewed the financial statements read with the cash flow statement of G M Polyplast Limited for the year ended March 31, 2025 and that to the best of our knowledge and belief, we state that; 1) these statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading;

2) these statements together present a true and fair view of the Companys affairs and are in compliance with existing accounting standards applicable laws and regulations.

There are, to the best of our knowledge and belief, no transactions entered into by the Company during the year which are fraudulent, illegal or violative of the Companys code of conduct.

We, accept responsibility for establishing and maintaining internal controls for financial reporting and that we have evaluated the effectiveness of internal control systems of the Company pertaining to financial reporting. We have not come across any reportable deficiencies in the design or operation of such internal controls.

We have indicated to the auditors and the Audit committee:

(a) That there are no significant changes in internal control over financial reporting year; during the

(b) That there are no significant changes in accounting policies during the year and that the same have been disclosed in the notes to the financial statements; and (c) that there are no instances of significant fraud of which we have become aware

CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS (Pursuant to Regulation 34(3) and Schedule V para C clause (10)(i) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015) To, The Members of G M Polyplast Limited A-66 New Empire Industrial Estate Kondivita Road Andheri East, Mumbai, Maharashtra India, 400059.

We have examined the relevant registers, records, forms, returns and disclosures received from the Directors of G M Polyplast Limited having

CIN L25200MH2003PLC143299 and having registered office at A-66 New Empire Industrial Estate Kondivita Road Andheri East, Mumbai,

Maharashtra India, 400059. (hereinafter referred to as the Company) produced before us by the Company for the purpose of issuing this

Certificate, in accordance with Regulation 34(4) read with Schedule V Para C- sub clause 10(i) of the Securities Exchange Board of India

(Listing Obligations and Disclosure Requirements) Regulation 2015. In our opinion and to the best of our information and according to the verifications (including Directors Identifications Number (DIN) status at the portal www.mca.gov.in) as considered necessary and explanation furnished to us by the Company and its officers, We hereby certify that none of the Directors on the Board of the Company as stated below for the Financial Year ending on 31st March, 2025 have been debarred or disqualified from being appointed or continuing as Directors of Companies by the Securities and Exchange Board of India, Ministry of Corporate Affairs or any such other Statutory Authority

Sr. No Name of Director	DIN	Date of Appointment in Company
01 Mr. Dinesh Balbir Sharma	00418667	27/11/2003
02 Mr. Balbir Singh Bholuram Sharma	00374565	27/02/2020
03 Mr. Subramanian Ramaswamy Vaidya	03600249	03/09/2020
04 Mrs. Sarita Dinesh Sharma	00128337	27/11/2003
05 Mr. Suhas Maruti Rane	03126514	27/08/2022
06 Ms. Anjali Sapkal	02136528	30/05/2023

Ensuring the eligibility of for the appointment/continuity of every Director on the Board is the responsibility of the management of the

Company. Our responsibility is to express an opinion on these based on our verification. This certificate is neither an assurance as to the future viability of the Company nor of the efficiency or effectiveness with which the management has conducted the affairs of the Company.