L.K.Mehta Polymers Ltd Management Discussions

Industry Overview:

The Company is engaged in the manufacturing and trading of a diversified range of plastic products, primarily comprising monofilament ropes, danline ropes, tape ropes, baler twines and packaging twines (sutli). The Company is also engaged in the trading and reprocessing of polymer raw materials, including polypropylene and polyethylene granules, catering to the requirements of various customers.

The Company markets its products under the established brand name Super Pack , which reflects its commitment to quality, customer satisfaction and long-term business relationships. With its experience, technical capabilities and well-equipped manufacturing facility, the Company continues to manufacture products in accordance with applicable specifications and customer requirements. The Company is also ISO 9001:2015 certified , demonstrating its commitment to quality management and consistent product standards.

The Indian rope, twine and cordage industry continues to witness steady demand from sectors such as agriculture, fisheries, marine, construction, infrastructure, transportation, packaging and other industrial applications. The increasing use of synthetic ropes and twines, particularly polypropylene-based products, provides opportunities for the Company to expand its presence and cater to the growing requirements of domestic and industrial customers.

The industry, however, remains subject to challenges including fluctuations in polymer prices, raw material availability, competitive pressures and evolving regulatory and quality requirements. The Company remains focused on maintaining product quality, improving operational efficiency, strengthening customer relationships and exploring emerging market opportunities to support sustainable growth and enhance stakeholder value.

Indian Economy Outlook:

The Indian economy demonstrated strong resilience during the financial year 2025-26 despite continued global economic uncertainties, geopolitical tensions and volatility in international markets. As per the First Advance Estimates, Indias real GDP is estimated to grow by 7.4% in FY 2025-26, supported by robust domestic demand, manufacturing activity, construction and services. Domestic consumption continued to remain a key driver of economic growth, with private final consumption expenditure estimated to account for 61.5% of GDP.

Growth during the year was supported by improving domestic economic activity, infrastructure development, investment and strengthening private consumption. The Governments continued focus on capital expenditure, infrastructure creation, ease of doing business and structural reforms is expected to provide further impetus to investment and employment, while strengthening the foundation for sustainable long-term economic growth.

Inflationary pressures remained relatively contained during the year, providing support to household purchasing power and business activity. As per the latest available official data, CPI inflation stood at 3.40% in March 2026 , indicating a broadly stable price environment.

Going forward, India is expected to remain one of the fastest-growing major economies, supported by strong domestic fundamentals, rising consumption, infrastructure investment, increasing manufacturing activity and a resilient financial sector. While global economic conditions, commodity price movements, geopolitical developments and external demand remain key factors to monitor, the Company remains optimistic about the medium-to-long-term growth prospects of the Indian economy and the opportunities arising from its continued expansion.

Global Rope Market Insights:

The global rope market continues to witness steady growth, supported by increasing demand across industrial, construction, marine, agriculture, transportation and other end-use sectors. The growing adoption of synthetic ropes, particularly polypropylene and other polyolefin-based products, is being driven by their advantages such as light weight, durability, flexibility, water resistance, corrosion resistance and ease of handling.

Industrial and infrastructure development remains one of the key growth drivers for the global rope industry. The increasing use of ropes in construction, lifting and material handling, marine and offshore activities, fishing, shipping and logistics is expected to support sustained demand. The replacement of traditional materials with high-performance synthetic ropes in several applications is also creating new opportunities for manufacturers.

The marine and offshore sectors are witnessing increasing adoption of synthetic ropes for mooring, towing, lifting and other applications due to their high strength-to-weight ratio, buoyancy and resistance to corrosion. Similarly, continued investment in infrastructure, residential and commercial construction and industrial development in emerging economies is expected to contribute positively to the demand for ropes and twines.

Going forward, the global rope industry is expected to maintain a positive growth trajectory, supported by technological advancements, increasing preference for lightweight and durable materials and expanding applications across end-use industries. However, factors such as fluctuations in raw material prices, global trade conditions, competitive pressures and evolving environmental regulations may influence industry growth. The Company remains well positioned to participate in emerging opportunities through its established product portfolio, manufacturing capabilities and focus on quality and customer requirements.

O pportunities and Threats:

The Company operates in an industry offering several growth opportunities, supported by increasing demand for plastic ropes and twines across sectors such as agriculture, fisheries, marine and shipping, construction, transportation, packaging and various industrial applications. Plastic and synthetic ropes offer advantages including durability, strength, light weight, water resistance and cost-effectiveness, making them suitable alternatives to traditional natural-fibre ropes in several applications. The growing adoption of synthetic materials and continued product innovation also provide opportunities for the Company to expand its product portfolio and customer base.

The increasing use of polypropylene-based ropes and twines, coupled with developments in polymer technology and manufacturing processes, is expected to support the long-term growth of the industry. Rising infrastructure development, industrial activity, marine and fishing operations and demand for efficient packaging and material-handling solutions are expected to create further opportunities. The Company, with its established product range and brand presence, is well positioned to benefit from these emerging opportunities.

At the same time, the industry faces certain challenges and threats, including volatility in the prices of polypropylene and other polymer-based raw materials, availability of quality raw materials, intense competition, changing customer preferences and pricing pressures. Changes in environmental regulations and increasing emphasis on sustainable and recyclable materials may also require the industry to adapt its products and manufacturing processes.

The Company continues to monitor these industry developments and remains focused on maintaining product quality, improving operational efficiency, strengthening customer relationships and adopting appropriate business strategies to mitigate potential risks. The Company believes that its established presence, diversified product portfolio and focus on customer requirements will enable it to effectively leverage available opportunities while managing the associated challenges.

Challenges (Risks and Concerns):

The Companys business is exposed to certain operational, market and commercial risks. A significant portion of the Companys revenue is derived from a limited number of customers, resulting in customer concentration risk. Any loss of a key customer, reduction in orders, change in procurement policies, increased competition or inability to maintain the required quality and service standards may adversely affect the Companys revenue, profitability and cash flows. The Company continues to focus on strengthening existing customer relationships and expanding its customer base to reduce concentration risk.

The Companys domestic sales are concentrated in certain geographical markets, including Madhya Pradesh, Uttar Pradesh, Bihar, Assam and Rajasthan. Any adverse change in economic conditions, demand, regulatory environment, competitive intensity or other factors affecting these markets may impact the Companys sales and overall business performance. The Company is accordingly focused on expanding its presence across additional geographies and customer segments.

The Company also faces supplier concentration and raw material availability risks. A substantial portion of its purchases is sourced from a limited number of suppliers, while procurement is generally undertaken on a purchase-order basis without long-term supply arrangements. Any disruption in supply, deterioration in quality, increase in prices or non-availability of polypropylene, polyethylene and other raw materials may result in increased production costs, delays in manufacturing and delivery schedules and may adversely affect the Companys operations and profitability. The Company continues to evaluate alternative suppliers and sourcing arrangements to mitigate these risks.

The Companys operations are dependent on the uninterrupted functioning of its manufacturing facility and related infrastructure. Equipment breakdown, power interruptions, process failures, labour-related issues, natural calamities, industrial accidents, regulatory requirements or other unforeseen events may disrupt production and adversely affect business operations. The Company undertakes preventive maintenance and appropriate operational measures to minimise such risks. Further, fluctuations in polymer prices, intense market competition, changing customer requirements and evolving environmental and regulatory standards may impact margins and business performance. The Company continuously monitors these risks and takes appropriate measures to mitigate their potential impact.

Future Outlook:

The Company remains positive about the long-term prospects of the rope and plastic products industry, supported by sustained demand from sectors such as agriculture, construction, infrastructure, marine and fishing, transportation, packaging and industrial applications. The increasing preference for synthetic ropes and twines, owing to their strength, durability, light weight, flexibility and cost-effectiveness, is expected to provide opportunities for continued industry growth.

Technological developments in polymer materials and manufacturing processes are further enabling the development of products with improved performance and wider applications. The growing focus on infrastructure development, industrial activity and efficient material-handling solutions is expected to support demand for quality plastic ropes and twines.

The Company intends to leverage its established product portfolio, Super Pack brand, manufacturing capabilities and customer relationships to capture emerging market opportunities. The Company will continue to focus on product quality, operational efficiency, geographical expansion and strengthening its customer base.

At the same time, the Company remains mindful of challenges such as raw material price volatility, competitive pressures, customer and supplier concentration and changing regulatory requirements. By maintaining prudent cost management, developing value-added products and strengthening its sourcing and market strategies, the Company aims to achieve sustainable growth and enhance value for its stakeholders.

Internal Control System and Their Adequacy:

The Company has established an adequate internal control framework comprising appropriate policies, procedures and processes commensurate with the size and nature of its operations. These controls are designed to safeguard the Companys assets, prevent and detect errors and irregularities, ensure accuracy and completeness of accounting and financial information, and support compliance with applicable laws and regulations.

The Audit Committee and the Board of Directors periodically review the effectiveness and adequacy of the internal control systems. In addition to the statutory audit, the Company has appointed an Internal Auditor to independently review the internal controls, financial reporting processes and operational systems and to identify areas requiring improvement. The scope and frequency of internal audit are determined based on an assessment of the Companys operational and financial risks.

The significant observations and recommendations arising from the internal audit are placed before the Audit Committee and the Board, as applicable, for their review and appropriate corrective action. The management monitors the implementation of the recommendations to strengthen the internal control environment and improve operational efficiency.

Based on the reviews undertaken during the year, the Company believes that its internal control systems are adequate and commensurate with the nature, size and complexity of its business and are operating effectively. The Company remains committed to continuously strengthening its internal control framework and risk management practices.

Health, Safety, Security and Environment

Health, safety, security and environmental protection remain integral to the Companys operating philosophy. The Company is committed to providing a safe and healthy workplace for its employees, workers and other stakeholders and continues to strive towards its objective of Zero Accident through appropriate preventive and safety measures.

The Company regularly identifies and assesses workplace hazards and risks and takes necessary measures for their mitigation. Safety inspections are undertaken to monitor unsafe conditions and practices, while safety induction and job-specific awareness programmes are conducted for employees and workers on a regular basis. The manufacturing facility is equipped with appropriate machinery, material-handling equipment and other infrastructure to facilitate safe and efficient manufacturing and logistics operations.

The Company is also committed to responsible environmental management and conservation of natural resources. Adequate measures are undertaken for the proper management and disposal of manufacturing waste, with emphasis on reuse and reprocessing of waste and scrap wherever feasible. The Company also endeavours to optimise the use of energy and other natural resources and maintain a clean and green environment around its manufacturing facility.

The Company complies with applicable environmental, health and safety requirements and cooperates with the relevant regulatory authorities during inspections and assessments. The Company remains committed to continuously improving its health, safety and environmental practices and to maintaining a safe, responsible and sustainable workplace.

Cautionary Statement:

This Annual Report, including the Management Discussion and Analysis, may contain certain statements that are forwardlooking in nature, including statements relating to the Companys objectives, plans, strategies, expectations, projections and estimates. Such statements are based on certain assumptions, expectations and information available as on the date of this Report and are subject to various risks and uncertainties.

Actual results, performance and achievements may differ materially from those expressed or implied in such forward-looking statements due to various factors, including changes in economic and business conditions, demand and supply dynamics, fluctuations in raw material prices, competition, market conditions, changes in government policies and regulations, taxation laws, technological developments, regulatory requirements and other factors beyond the control of the Company.

The Company undertakes no obligation to publicly update or revise any forward-looking statements to reflect subsequent events, developments or circumstances, except as may be required under applicable laws and regulations. Accordingly, readers are advised to exercise due caution and not place undue reliance on such forward-looking statements.

Annexure to the Board Report Annexure-C

PARTICULARS OF EMPLOYEES

Disclosures pertaining to remuneration and other details as required under Section 197(12) of the Companies Act, 2013 read with Rules made there under.

The information pursuant to Section 197(12) ofthe Companies Act, 2013 read with Rule 5(1) ofthe Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, for the Financial Year ended March 31,2026, is as follows:

1. Ratio of remuneration of each Director to the median remuneration of employees and percentage increase in remuneration

Sr. No.	Name of Directors and KMPs	Total Remuneration for the FY 2025-26 (Per Annum Amount in Rs.)*	% Increase or Decrease in Remuneration paid in FY 2025-26 as compared to FY 2024-25	Ratio of Remuneration of each Directors to the Median Remuneration of the Employee
1.	Mr. Kamlesh Mehta (Managing Director)	3,60,000/-	Not ascertainable*	4.78:1
2.	Mrs. Rina Mehta (Whole Time Director)	3,60,000/-	Not ascertainable*	4.78:1
3.	Mr. Chetan Moonat (Non-Executive Director)	NIL	NA	NA
4.	Mr. Deepak Mehta (Independent Director)	NIL	NA	NA
5.	Mr. Nitesh Barbeta (Independent Director)	NIL	NA	NA
6.	Ms. Aashi Mehta (Chief Financial Officer)	2,52,000/-	0%	3.35:1
7.	Mr. Akash Rajput (Company Secretary & Compliance Officer)	58,334/-	NA**	0.77:1
8.	Ms. Deeksha Sahu	17500/-	NA	0.23:1

* Since no remuneration was paid to the Managing Director and Whole-time Director during FY 2024-25, the percentage increase/(decrease) in remuneration during FY 2025-26 is not mathematically ascertainable.

** The office of Company Secretary was held by different incumbents during the relevant financial years. Ms. Pooja Wadhwani, who was the Company Secretary during FY 2024-25, resigned with effect from April 1,2025. Mr. Akash Rajput was appointed as Company Secretary & Compliance Officer with effect from June 20, 2025 and resigned with effect from November 30, 2025. Accordingly, the percentage increase/(decrease) in remuneration is not directly comparable due to change in incumbents during the relevant period.

2. Median remuneration of employees

The median remuneration ofthe permanent employees ofthe Company for the Financial Year 2025-26 was ?75,330/-.

3. Percentage increase/(decrease) in median remuneration of employees

The percentage increase/(decrease) in the median remuneration of employees during the Financial Year 2025-26, as compared with the previous financial year, is not ascertainable due to non-comparability of the employee population between the two financial years.

4. Number of permanent employees

There were 14 permanent employees on the rolls of the Company as on March 31,2026.

5. Average percentile increase in salaries of employees other than managerial personnel and comparison with managerial remuneration

There was no increase in the remuneration of employees other than managerial personnel during the Financial Year 2025-26.

During the Financial Year 2025-26, the Managing Director and Whole-time Director were paid remuneration of ?3,60,000/- each, whereas no remuneration was paid to them during the Financial Year 2024-25.

Since the remuneration of the Managing Director and Whole-time Director during the previous financial year was Nil, the percentage increase in their remuneration is not mathematically ascertainable.

The remuneration of the Chief Financial Officer remained unchanged at ?2,52,000/- during FY 2025-26 as compared to FY 2024-25.

The Company Secretary position was held by different incumbents during the two financial years and, accordingly, the remuneration of the respective incumbents is not directly comparable.

6. Increase in managerial remuneration and justification thereof

During the Financial Year 2025-26, remuneration of ?3,60,000/- each was paid/payable to the Managing Director and Whole-time Director.

No remuneration was paid to the Managing Director and Whole-time Director during the Financial Year 2024-25. Accordingly, the remuneration paid/payable during FY 2025-26 represents remuneration paid/payable during the current financial year, and the percentage increase over the previous year is not mathematically ascertainable due to the Nil remuneration in the previous financial year.

7. Affirmation regarding remuneration

It is hereby affirmed that the remuneration paid/payable to the Directors and Key Managerial Personnel during the Financial Year 2025-26 is in accordance with the Nomination and Remuneration Policy of the Company.

8. Ratio of remuneration to median remuneration

Based on the median remuneration of employees of ?75,330/-, the ratio of remuneration of the Directors/KMPs to the median remuneration of employees is as follows:

Managing Director - 4.78:1

Whole-time Director - 4.78:1

Chief Financial Officer - 3.35:1

Company Secretary & Compliance Officer - 0.77:1

The Non-Executive Director and Independent Directors did not receive any remuneration during the Financial Year 2025-26 and, accordingly, the ratio is Not Applicable.