Kkalpana Plastick Ltd Management Discussions

World Economic Overview:

The global economy demonstrated moderate resilience during 2026 despite continued geopolitical uncertainties, evolving trade policies, inflationary pressures in certain economies, and supply chain realignments. Economic growth was supported by steady consumer demand, improving industrial activity in emerging markets, and gradual stabilization of inflation in major economies. However, higher interest rates in some regions and volatility in energy and raw material prices continued to influence business sentiment.

Indian Economic Overview:

The Indian economy continued to remain one of the fastest-growing major economies during 2026, supported by robust domestic consumption, sustained government capital expenditure, and steady growth in manufacturing and services sectors. Inflation showed signs of gradual moderation during the year, aided by stable food prices and prudent monetary policy measures by the Reserve Bank of India. Rising urbanization and increasing disposable incomes continued to support demand across consumption- driven industries, including plastics and allied sectors.

Industry Overview:

The Plastic Compounds industry in India continued to benefit from increasing demand across key end-use sectors including packaging, automotive, electrical & electronics, healthcare, infrastructure, and consumer goods. rising urbanization, increasing disposable incomes, and the Governments focus on manufacturing-led growth and infrastructure development supported higher consumption of value-added plastic compounds. Industry estimates indicate that the Indian plastic compounding market is expected to maintain strong long-term growth, driven by increasing adoption of engineering plastics and customised polymer compounds. During the year, the industry also faced certain challenges arising from volatility in crude oil and polymer prices, geopolitical disruptions affecting global supply chains, and fluctuations in the availability of key petrochemical feedstocks. Nevertheless, timely policy measures, including temporary relief on import duties for certain petrochemical products, helped ease supply constraints for downstream manufacturers.

Companys Financial Performance:

(Rs. In Thousand)

Particulars	2025-2026	2024-2025
Total Revenue	4844.03	5038.94
Profit/ (Loss) before Depreciation, Interest & Tax	738.78	894.45
Profit/ (Loss) before Tax	738.78	894.45
Profit/ (Loss) after Tax	599.13	873.99

However, at present the Company does not have any revenue from operation and that the revenue mainly comprises of other income.

Segment wise or Product wise Performance:

The Company operates in single business segment of Plastic Compounds. However, the company has not undertaken any operation during the Financial Year 2025-2026.

Important Ratios in respect of the Financial Year ended March 31, 2026 are as below:

a) Debt Equity Ratio: 0.00% in Financial Year 2025-2026 (it was 0.00% in Financial Year 2024-2025)

b) Current ratio: 95.62% in Financial Year 2025-2026 (it was 87.99% in Financial Year 2024-2025)

c) Interest Coverage ratio: 0.00% in Financial Year 2025-2026 (it was 0.00% in Financial Year 2024-2025)

d) Debt Service Coverage ratio: 0.00% in Financial Year 2025-2026 (it was 0.00% in Financial Year 20242025)

e) Stock Turnover ratio: 0.00% in Financial Year 2025-2026 (it was 0.00% in Financial Year 2024-2025)

f) return on Equity (Roe): 0.94% in Financial Year 2025-2026 (it was 1.39% in Financial Year 2024-2025) Future Outlook:

The global plastic compounding industry is expected to witness sustained growth over the medium to long term, supported by increasing demand for lightweight, durable and high-performance materials across a wide range of end-use industries, including automotive, electrical and electronics, healthcare, packaging, aerospace and industrial manufacturing. The growing adoption of engineering plastics, thermoplastic compounds and specialty polymer blends is expected to further accelerate this growth as industries continue to focus on enhancing product performance, improving operational efficiency and reducing overall system costs. The ongoing transition towards electric mobility, advancements in miniaturization of electronic devices, increasing industrial automation and rising investments in advanced manufacturing technologies are expected to create significant opportunities for the plastic compounding industry. In addition, innovations in material science, including AI-assisted material development, high-performance polymer formulations and customized compound solutions, are anticipated to support the development of next-generation applications with enhanced functionality and sustainability. Environmental sustainability will continue to remain a key growth driver for the industry. Governments and regulatory authorities across the globe are introducing stricter regulations aimed at reducing plastic waste, promoting recycling, limiting the use of virgin plastics and encouraging circular economy practices. These evolving regulatory frameworks are accelerating the adoption of recycled, bio-based and sustainable plastic compounds across various industries. As a result, manufacturers are increasingly investing in chemical recycling technologies, recyclable material solutions and environmentally responsible production processes to meet regulatory requirements and evolving customer expectations. The market is also expected to benefit from the growing demand for ultra-high-performance polymers and advanced engineering compounds that offer superior mechanical strength, thermal stability and chemical resistance for critical applications. These trends are expected to expand the scope of plastic compounds in high-value sectors where performance, reliability and sustainability are essential. Overall, the outlook for the global plastic compounding industry remains positive. The convergence of technological innovation, sustainability initiatives, regulatory support and expanding end-use applications is expected to drive long-term growth. Companies that focus on product innovation, operational excellence, sustainable manufacturing practices and customer-centric solutions will be well positioned to capitalize on emerging opportunities and create sustainable value for stakeholders.

Challenges in the Plastic Industry:

The plastic industry faces several challenges that require attention and strategic planning to ensure sustainable growth and mitigate potential risks. Two significant challenges include environmental impact and pollution as well as health and safety concerns.

> Environmental Impact and Pollution: The production and use of plastics have a significant impact on the environment. The plastic industry heavily relies on fossil fuels and the continued growth of the industry is projected to increase plastic production by 40% over the next decade, as reported by the Center for Biological Diversity. This increase in plastic production can lead to environmental pollution, particularly in neighborhoods and waterways.

> Health and Safety Concerns: The plastic industry also faces health and safety concerns, both for workers in the industry and the communities surrounding plastic production facilities. The emissions from plastic production facilities, as mentioned earlier, can contribute to various health issues such as asthma, lung cancer and cardiovascular diseases in neighboring communities as reported by Center for Biological Diversity.

> Volatile Raw Material & Supply Chain Cost: Plastic manufacturing relies heavily on petrochemicals and natural gas. Fluctuations in oil prices directly translate to unpredictable resin costs. Additionally, global supply chain disruptions, logistics delays, and import dependencies for specific polymers significantly impact production lead times and profit margins.

Opportunity and Threats:

Opportunity:

> The use of plastic made products has gained considerable response from the customers. In number of items of Retail and Industrial consumption, it is found that the use of plastic made products has replaced many other products as the best substitute products. The increase in the use of plastic products will open new areas for the plastic Industries.

> Polymers are the foundation of plastic and are used in a wide variety of applications, including packaging, automotive, construction, electronics, medical etc.

> Plastics exhibit a number of useful characteristics ideal for wire insulation, including ductility, electrical resistance, UV resistance and fire resistance and therefore find use in cable and wire industry.

> Plastics used in Automative Industries are required to be lightweight, so as to reduce fuel consumption.

> The use of 3D printing technology in plastic manufacturing is on the rise, allowing manufacturers to produce complex plastic parts with greater precision and customization. This technology is expected to revolutionize the manufacturing industry and create new opportunities for plastic manufacturers.

> The circular economy is an emerging concept that aims to minimize waste and promote sustainability by reusing and recycling materials. Plastic manufacturers are increasingly adopting this concept, with many companies investing in recycling facilities and producing more sustainable plastic products.

> Government of India has launched many initiatives like Make in India, Atmanirbhar Bharat Abhiyaan for making the country and its citizens independent and self-reliant in all senses. This will have a positive effect on the growth of many industries.

Threat:

> One of the major factors that are expected to restrain the growth of the plastic compounding market is the fluctuating raw material prices. Therefore, this is expected to hinder the growth of the plastics compounding market.

> There has been the imposition of various stringent regulations on the use of plastic with rising environmental concerns related to the toxicity issues and this will pose a major challenge to the growth of the global plastic compounding market.

> Possible restraints for the plastic compounding market include increasing concerns about environment pollution and the need for sustainable solutions. Stringent regulations on single-use plastics, recycling challenges and a shift towards biodegradable alternatives may limit the growth of traditional plastic compounds.

> The fluctuating raw material prices and supply chain disruptions could impact the industrys profitability. The rise of alternative materials like bio-based polymers and the growing preference for recycled plastics might pose a competitive challenge. Furthermore, global economic uncertainties and geopolitical factors could influence investment decisions and hinder market expansion for plastic compounding.

Risks and Concerns:

At Kkalpana Plastick Limited, management ensures that risks are adequately measured, estimated and mitigated. Based on operations of the Company, new risks, if any, are identified and steps are taken to mitigate the same.

> Risk identification is a set of activities that detect, describe and catalog all potential risks to assets and processes that could negatively impact business outcomes in terms of performance, quality, damage, loss or reputation. It acts as input for actual risk analysis of the relevant risks to an organization.

> Risk Mitigation is the process of planning for disasters and having a way to lessen negative impacts. It mainly focuses on the inevitability of some disasters and is used for those situations where a threat cannot be avoided entirely.

> Follow Up: In case of risk which the company has identified, regular follow-up is required. There is a procedural check in order to ensure that the risk, whose mitigation plan is there, does not reoccur. However, if it reoccurs, there should be a suitable mitigation plan ready for it.

Internal Control System:

The Company has a well-established internal control systems and procedures covering all functional areas. It provides, among others, a reasonable assurance that transactions are executed with management authorization and ensures preparation of financial statements in conformity with established accounting principles and that the assets of the Company are adequately safeguarded against significant misuse or losses.

The Audit Committee of the Board periodically reviews the terms of reference and the adequacy of internal control system, significant observations and their disposals and remedies if any.

Human Resources and Industrial Relations:

The Company appreciates performance of the employees for the year and anticipate the much more for the years to come. Your Company believes in employee empowerment across the entire organization in order to achieve organizational effectiveness. The Industrial relations of the Company was cordial and there were no instances of employee disputes arising during the year.

Cautionary Statement:

Certain statements made in the Management Discussion and Analysis Report relating to the Companys objectives, projections, estimates and expectations and others may constitute forward looking statements within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand/supply and price conditions in the domestic and overseas markets in which the Company operates, changes in the Government regulations, tax laws, natural calamities and so on over which the company does not have any direct control.

Date: May 04, 2026	For and on behalf of the Board
Place: Kolkata
	Sajjan Kumar Sharma	Rashi Nagori Mehta
	(DIN: 02162166)	(DIN: 09057989)
	Whole-Time Director	Director