MPL Plastics Ltd Management Discussions

GLOBAL-ECONOMIC OVERVIEW

The global economy exhibited moderate growth in FY 2024 25, despite geopolitical tensions, continued inflationary pressures, and monetary tightening in major economies. According to the International Monetary Fund (IMF), global GDP grew at approximately 2.9% compared to 3.2% in FY 2023–24. Advanced economies, particularly the United States and the Eurozone, experienced slowed growth due to elevated interest rates and cautious consumer spending.

Developing economies, notably in Asia and Africa, demonstrated resilience, supported by increased infrastructure investments and recovery in manufacturing. However, disruptions in global supply chains, ongoing conflicts in Eastern Europe and the

Middle East, and volatility in energy and commodity prices impacted global trade volumes.

Environmental concerns and climate policy reforms gained momentum, with governments and corporations shifting focus toward sustainable materials and circular economies. This trend increasingly influencedthe global plastics industry and related sectors.

India remained one of the fastest-growing major economies in FY 2024–25, with a real GDP growth rate of approximately 6.8% (RBI estimates). Growth was driven by strong domestic consumption, robust performance in the services sector, and continued investments under the Governments infrastructure development initiatives such as Gati Shakti and PM Gati Shakti National Master Plan.

Inflation was largely contained within RBIs target band, aided by stable food prices and easing global crude oil prices. The

Indian government continued to promote ‘Make in India, ease of doing business, and PLI (Production Linked Incentive) schemes, which positively impacted the manufacturing sector, including plastic and allied industries.

Export growth was moderate due to soft global demand, but Indias emphasis on self-reliance and localized production led to increased investments in automation and capacity building in the industrial and packaging sectors.

The Indian plastic industry, among the top five globally, continued its expansion in FY 2024 25 with an estimated market size exceeding 4.2 lakh crore. Driven by increased demand from packaging, automotive, agriculture, healthcare, and FMCG sectors, the industry registered a growth rate of ~8% during the year.

The Company has closed down its operations at Silvassa and Pune plant and sold land & building and machinery during preceding year. 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 & building and machinery during preceding year. 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 processofidentifying,evaluatingandmanagingsignificantrisks 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 financialstatements including the financial reporting

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