Company Overview

Ecoplast Limited submitted its Annual Report for FY 2025-26 to BSE, reporting revenue of ₹221.08 crore (up from ₹207.78 crore in FY25) but net profit declined to ₹11.98 crore from ₹13.77 crore. Earnings per share stood at ₹25.20 compared to ₹31.72 in the previous year.

Amalgamation Completion

The Hon'ble National Company Law Tribunal, Ahmedabad approved the Scheme of Amalgamation of Kunal Plastics Private Limited with Ecoplast Limited on May 14, 2026. The appointed date was April 1, 2025, with an effective date of May 28, 2026 upon filing with ROC. The transaction requires issuance of 1,300,000 equity shares to Kunal Plastics shareholders, with net assets taken over valued at ₹25.00 million.

44th Annual General Meeting

The company will hold its 44th AGM on September 7, 2026, with agenda items including:

  • Adoption of audited financial statements for FY26
  • Re-appointment of Mr. Ravi Amulbhai Mehta who retires by rotation
  • Revision in remuneration for four Whole-time Directors effective June 1, 2026
  • Ratification of cost auditor remuneration of ₹2.5 lakh plus taxes for FY27

Director Remuneration Revisions

The company seeks shareholder approval for revised compensation packages:

  • Mr. Jaymin B. Desai (Managing Director): ₹9,89,218/month basic salary with annual increments
  • Mr. Atul Baijal (Whole-time Director): ₹5,41,667/month basic salary
  • Mr. Aditya Nitinkumar Patel (Whole-time Director): ₹2,26,400/month basic salary
  • Mr. Ravi Amulbhai Mehta (Whole-time Director): ₹3,20,200/month basic salary

Financial Position and Ratios

The company maintained strong liquidity with current ratio of 3.51 and minimal debt (debt-equity ratio of 0.01). Key ratios showed some deterioration with inventory turnover declining to 5.92 from 6.36 and net profit margin decreasing to 0.05 from 0.07. The company repaid all borrowings, resulting in a significant improvement in debt service coverage ratio to 31.14.

Auditor Confirmation

Auditors M/s. Y.B. Desai & Associates provided an unmodified opinion on both financial statements and internal financial controls, while emphasizing the accounting treatment of the amalgamation. They confirmed compliance with accounting standards and Companies Act requirements, with no key audit matters identified.

Corporate Governance and Compliance

The Board met 9 times during FY26 with several director appointments and changes. The company spent ₹32.20 lakh on CSR activities, meeting its obligation of 2% of average net profit. All regulatory compliance requirements were met, including SEBI disclosure norms and corporate governance standards.

Subsequent Events and Outlook

No dividend was recommended for FY26, consistent with the previous year. The company reported no material changes from year-end to the report date and maintained adequate internal controls and vigil mechanisms. Financial results are presented on a merged basis reflecting the Kunal Plastics amalgamation from the appointed date of April 1, 2025.