Tainwala Chemicals & Plastics India Ltd Management Discussions

Tainwala Chemicals and Plastics (India) Limited is engaged in the business of manufacturing extruded plastic sheets of various polymers like PVC, PP, ABS etc. from 0.5 mm to 30 mm thickness & Trading in Commodities. The plastic sheets have diverse application in the fabrication of industrial equipments, lining of chemical tanks, signboards, automobiles and white goods industry as well as pollution control equipment. The sheets are a very good substitute for conventional materials like wood, metal etc. due to its advantages of being tough, light and anti-corrosive.

a. Plastic Sheet:

The plastic sheet industry continues to face challenges stemming from overcapacity, resulting in under-utilization of available resources. Your Company is also impacted by these industry conditions and remains focused on improving capacity utilization through ongoing market development efforts and customer engagement.

b. Trading in Commodities:

The Company continues to evaluate market opportunities in the commodity sector with a prudent approach towards value creation. However, the Company does not envisage any significant commodity trading activities during FY 2026-27.

During the year under review:

> The Company achieved Turnover of INR 1783.31 Lakhs as compared to INR 1641.70 Lakhs in the previous year, which is an increase of 8.62% versus last year.

> The Net Profit after Tax for the year is INR 1078.53 Lakh as compared to INR 491.95 Lakh in the previous year, an increase of about 119.23%.

The Company is focused on managing its operational capacity more efficiently in future. The Management remains committed to increasing revenue by identifying new customer markets and exploring emerging business opportunities.

The PVC Engineering Sheets segment is expected to witness steady growth, driven by increasing demand from infrastructure, environmental, and affordable housing projects. Continued investments in sewage and water treatment systems and favorable market conditions are expected to support demand for PVC sheets.

The key financial ratios of the Company where there has been significant change (25% or more) and change in Return on Net Worth are disclosed in Note 37(Ratio) of the Financial Statements, which forms part of this Annual Report.

Opportunities:

• Rising demand from infrastructure, housing, and water treatment sectors.

• Substitution of traditional materials like asbestos and metal with PVC.

• Government initiatives (Smart Cities, Swachh Bharat) boosting usage.

• Export potential to emerging markets.

• Technological advancements in durable and specialty PVC sheets.

• Increasing per capita plastic consumption in India.

Threats:

• Raw material price volatility (linked to crude oil).

• Strict environmental regulations and plastic bans.

• Import competition from low-cost foreign manufacturers.

• Emerging eco-friendly alternatives to PVC.

• Capital-intensive upgrades needed for compliance and competitiveness.

The Company operates in two primary business segments: Plastic Sheets and Commodity Trading. The performance of each segment is outlined below:

The Company makes responsible approaches towards Risk Management on an integrated basis to cover all aspects of operations to diminish each or a combination of known risks that could affect its business.

Apart from the above, the Company has a well-documented Risk Management System. The Company does identify a few risks, which are purely routine in nature and none of any significant impact. There is a mitigation system in place which addresses these risks as part of routine management process.

The Company has a robust internal control system aligned with its size and operations to ensure efficient resource utilization, accurate financial reporting, and regulatory compliance. An internal audit department conducts regular audits, while the Audit Committee periodically reviews financial results and records for accuracy.

The Company has maintained a positive and collaborative work environment, with cordial employee relations across all locations throughout the year. As of March 31, 2026, the total headcount stood at 19. Tailored learning opportunities are provided to employees based on their roles and responsibilities. The Board acknowledges and appreciates the dedication and contributions of all employees during the year.

The Company maintains an in-house R&D facility at its manufacturing unit to ensure quality control and explore product improvements. Continued efforts are made to enhance efficiency and reduce material waste.

Any statements made in this report relating to Companys perception of future outlook, objectives, expectations etc. may be considered as forward looking within the meaning of applicable securities laws and regulations which may differ from the actual results. Factors that would make difference to Company operations include competition, price realization, forex market, changes in government policies and regulations, tax regimes, economic development and other incidental factor.