MPL Plastics Ltd Management Discussions

GLOBAL-ECONOMIC OVERVIEW

During FY 2025-26, the global economy witnessed moderate growth despite geopolitical uncertainties, inflationary pressures, and evolving trade dynamics. Demand across manufacturing and consumer sectors remained resilient, supported by stable economic activity in major emerging markets.

The global plastics industry continued to benefit from growth in packaging, consumer goods, healthcare, and e-commerce sectors. At the same time, increasing focus on sustainability, recycling, and environmental regulations encouraged the adoption of eco-friendly and circular economy practices.

Despite fluctuations in raw material prices and global trade challenges, the long-term outlook for the plastics industry remains positive, driven by urbanization, rising consumer demand, and innovation in sustainable plastic solutions.

India continued to be one of the fastest-growing major economies during FY 2025-26, supported by strong domestic demand, infrastructure development, and government-led reforms. Growth in manufacturing, consumer goods, healthcare, and e-commerce sectors contributed to increased demand for plastic products. Despite global uncertainties and raw material price fluctuations, Indias economic outlook remains positive, driven by urbanization, rising incomes, and expanding industrial activity.

The Indian plastics industry continues to play a vital role in supporting key sectors such as packaging, consumer goods, healthcare, automotive, construction, and agriculture. Growing demand from these industries, coupled with increasing urbanization and rising consumer spending, has supported industry growth. While fluctuations in raw material prices and stricter environmental regulations remain challenges, the industrys focus on recycling, sustainability, and innovation is expected to create long-term growth opportunities

The Company has closed down its operations at Silvassa and Pune plant and sold land and machinery during Financial Year 2023-24. The management is constantly reviewing the situation and evaluating options including winding up of the Company.

There exists material uncertainty to start other business operations.

The Company has closed down its operations at Silvassa and Pune plant and sold land and machinery during Financial Year 2023-24. The management is constantly reviewing the situation and evaluating options including winding up of the Company.

The management is constantly reviewing the situation and evaluating options including winding up of the Company.

Your Company has only a single reportable segment which comprises of Thermoware products. As the Company has closed its manufacturing operations, no segmental information is required to be given.

There is a continuous process of identifying, evaluating and managing significant risks faced through a risk management process designed to identify the risk facing business. Risk Management Policy has been uploaded on the website of the Company.

The Company recognises the importance of Human Resource as a key asset instrumental in its growth. The Company believes in acquisition, retention and growth of talented team players. The Industrial Relations in the Company are satisfactory and cordial.

The Company has an internal control system in place which is commensurate with the size and nature of the business. The internal controls are aligned with statutory requirements and designed to safeguard the assets of the Company. The Management reviews and strengthens the controls periodically. Apart from self-monitoring of the internal controls, there is an independent Chartered Accountant firm appointed to conduct internal audit of the Companys operations. The Statutory

Auditors present their observations to the Audit Committee on financial statements including the financial reporting system. The Audit Committee takes due cognizance of the observations made by the auditors and gives their suggestions for improvement. The suggestions of the Audit Committee further ensure the quality and adequacy of the control systems.

Highlights: ( in lakhs)

During the year, there was significant change in the following key financial ratio as compared to the previous year:

Certain statements in this report on “Management Discussions and Analysis” may be forward looking statements within the meaning of applicable securities laws and regulations. There are several factors, which would be beyond the control of the management, and as such, actual results could differ materially from those expressed or implied