Innocorp Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENTS:

The industry is facing lots of constraints. The margins are reduced to lowest level and stiff competition from un-organized sector and local players adversely affected the turnover. The management is of the view that any investment and expansion in the present lying of Plastics will not provide any better results. The Company has continued its effort in product innovation considering the changing consumer preference

The government of India is trying to set up the economic reforms to elevate and boost the plastic industry by joint venturing, foreign investments.

Environmental regulations and plastic waste management infrastructure are the major challenges faced by the Company. Your Company is making all its efforts to meet environment compliance and adopting various policies to avoid plastic waste.

The Company is primarily engaged in the business of trading of Plastic Products. It does not have any other reportable business segments or diversified product categories, and hence its performance is reflected through this single line of activity.

The trading operations are focused on meeting the demand of customers through timely procurement and supply of quality plastic products. The Company continues to strengthen its business relationships with suppliers and customers, ensuring consistency in supply and service.

Since the Company operates only in one line of business, the entire financial and operational performance is attributable to the trading of Plastic Products. The management continuously reviews market conditions, demand patterns, and pricing trends in order to sustain competitiveness and improve efficiency in operations.

The Company is diversifying its presence in rural market through strong distribution network. The Company is also exploring the potential in the international market.

Competition from the unorganized small scale sector via cut-throat competition from the new entrants in the market, thereby squeezing the Companys profit margins.

The Company has an adequate system of internal controls that ensures that all assets are protected against loss from unauthorized use or disposition and all transactions are recorded and reported in conformity with generally accepted accounting principles.

During the financial year under review the difficulties which were faced in the last year is not effected much in the financial position of the company and the Company is able to achieve high turnover as compared to last financial year and due to high turnover and high expenditure the Company has recorded reasonable profits in the current financial year

The Company is hopeful that this fiscal the Company will achieve good turnover as the economy will witness upward trend and good business despite of huge competition in wholesale prices and doing trading with fewer margins to sustain in the market.

Your company maintains very cordial relations with its customers and suppliers. Your company has earned a good standing over the years and there are zero contentious issues pending as on date. The organization maintains harmonious relations at all levels within the company and employees are well motivated round the year to meet the goals set for them. Your Company is continuously striving to create appropriate environment, opportunities and systems to facilitate identification, development, and utilization of their full potential and inculcating a sense of belongingness. Your Companys industrial relations continued to be harmonious during the year under review.

Discussion on Financial Performance with respect to Operational Performance: i. Total Income as on 31st March 2025 is Nil. ii. Share Capital: The Paid-up share Capital as on 31st March, 2025 is 794.14 Lakhs. iii. Net Loss as on 31st March, 2025 is (37.64) Lakhs. iv. Earnings per Share (EPS) as on 31st March, 2025 are (0.47).

The Earning per Share for the Financial Year 2024-25 is Rs. (0.47) per share (Face Value: Rs.10/- each). Your directors are putting continuous efforts to increase the performance of the Company and are hopeful that the performance in coming year will overcome from the present situation.

Statements in this management discussion analysis describing the Companys objectives, projections, estimates, expectations may be forward looking within the meaning of applicable securities-laws and regulations. Actual results may differ materially from those expressed in the statement. Important factors that could make difference to Companys operations include economic conditions affecting the domestic market and the overseas markets in which the Company operates, changes in the Government regulations, tax laws and other statutes and other incidental factors.