Marvel Vinyls Ltd Management Discussions.

INDUSTRY STRUCTURE & DEVELOPMENT

The Auto Sector, Footwear & Building Materials are the primary growth drivers for Marvels products. Overall, the look for global growth for these industries remains good. Increase in spending power primary in emerging markets and stable demand from developed markets augurs well for both these industries. Talking speci cally for Synthec Leather, the market is expected to grow of more than 40% in next five years. Recent developments in India and abroad are curtailing animal slaughter, that is likely to result in scarcity of genuine leather and thus drive growth of synthec leather. On the other hand PVC Sheeng , which is primarily catering to the automov e sector is also expected to grow in double digits for at least the next 3 years. PVC Flooring applica ons, while varied, are heavily linked with infrastructure development. With investments in Healthcare, Manufacturing and Retail Space, the industry outlook here too remains posiv e.

OUTLOOK

The biggest customer segment for Marvel is automov e. With increasing investments including FDI, in automo ve sector and the 10 year Automov e Mission Plan of the Government of India driving substanal growth in auto sector, we can look forward to subjected market growth. This is a bene t for both of our synthe c leather products as well as sheeng products. In addion, with customer focus increasing on cost saving and environment conservaon, the choice of synthec leather (over genuine leather) has become a natural one, parcularly for the mass market. Another major focus area for Marvel is the footwear segment. The annual footwear producon in India has more than 700 Million pair per annum, the second largest ae r China. For Indian exports, Leather has been iden ed as one of the focus factors as it is among the top 10 Foreign Exchange earners. The Make in India Programme focuses on Leather Industry as one of the major areas of growth. It is sure that as advancements in technology make synthec leather comparable to leather, it is due to take some business share from that pie.

Outlook for ooring materials is again posiv e based on increased consumer spending domes cally as well as huge infrastructure projects in the Middle East and Africa.

Opportunities and Threats:

Opportunities :

• Growing Demand from the Automo ve Industry

• Improving penetraon in the Auto Sector

• New industries being targeted- footwear and marine

• Diversi ed Product Por olio

• Growing internaonal and domesc markets

• Focus on R & D and innovaons like breathable leather, Electrical Insulaon Flooring

• Growing fashion consciousness globally

• Well- Established rela onships with Distribuon Chain leading to steady order ow

• Excellent availability of raw materials and other inputs.

• Exposure to export markets creates a natural hedge against domes c slowdowns and currency uctuaons

Threats:

• Harmful environmental e ects of the processing of PVC and is a major restraint for the market.

• Volatality in raw material prices.

• Increase in compeon.

• Exposure to foreign exchange

• Dependency on Automov e Industry

• Customer & Geographical concentraon

Segment-wise performance:

The Company is engaged in one business segment i.e. manufacturing and sale of Synthec Leather, PVC Floor Covering, PVC Sheets and Films, Technical Coated texles, hence, accordingly there is only single reportable segment.

Financial performance with respect to operational performance:

The details have been provided in Boards Report.

Risk and concerns

The Companys business is exposed to both external and internal risks. These risks could result in a variance in actual results and historical results. In line with this, your Company framed a detailed Risk Management Policy which iden es the various types of risks at all levels of the Company. Early risk iden c aon along with appropriate measures has enabled the Company to mig ate all threats which may arise from me to me. Also, the possibility of occurrence of the risk event and the magnitude of their consequences on the organiza on is determined and used to priori ze risk management.

Internal Control Systems and their adequacy

The Company has adequate internal control system commensurate with the nature, size, and scale of its business opera ons. Internal control systems comprising of policies and procedures are designed to ensure the robust operaonal controls, reliability of financial policies, procedures, applicable laws and regulaons and that all assets and resources are acquired economically, used e ciently and adequately protected. These systems enable integrity of financial reporng and adherence to de ned guidelines. Internal controls are regularly reviewed for the changing business economic and regulatory environment and to ensure e ciency and e ec veness. Corporate policies, management informaon and reporng system for the major operaonal areas form part of the overall control mechanism.

Material Developments in Human Resources/ Industrial Relations front including number of people employed:

The Company connues to invest in human capital to harness the poten al of its workforce and ensure that they contribute towards its business goals. The human resources prac ces and ethicsenables the Company to ar act, integrate, develop and retain the best talent to achieved desired business growth. The Company is committed to create an environment of learning and development, promote internal talent and develop cross funconal experse. The Company has embarked on several human resource ini a ves to enhance the produc vity of the organiza on and each individual. In order to enhance employee mo va on and build a performance driven culture, The people oriented best HR pracces enables the Company to ar act and retain the best of available talent.

The Performance management systems coupled with planning individual development involves organized systems that are backed by a vision of developing a strong capital of high performance employees. As on 31stMarch, 2019, the Company had 349 on-roll employees.

For and on behalf of the Board of Directors
M/s MARVEL VINYLS LIMITED
PANKAJ CHAWLA PAVAN KUMAR CHAWLA
PLACE: NEW DELHI Whole-me Dir ector & CFO Managing Director
DATE: 30.08.2019 DIN: 00104666 DIN: 00101197