MPL Plastics' record is not a going concern in any ordinary sense: the company has zero revenue and negative operating cash flow in each of the last two fiscal years, and the statutory auditor resigned mid-term in 2021, with the replacement now proposed for a second term. The company has zero revenue, negative operating cash flow, and a board-approved path toward insolvency or winding up. Two decades-old related-party loans remain fully doubtful of recovery, one allegedly adjusted on forged documents with criminal proceedings initiated, and a fresh ₹4.64 crore excise liability was confirmed in November 2024.
Key findings
- Two decades-old related-party loans sit fully doubtful, one allegedly adjusted on forged documents
Major- MPL Plastics loaned ₹50.00 lakhs to Khazana Tradelinks in FY 2002-03; the borrower adjusted the entire loan without consent, the company disputed the adjustment as done on forged and fabricated documents, and the amount was carried forward as doubtful of recovery in FY2025-26. A ₹1.71 crore inter-corporate deposit to Pathmaker Finance from FY 1997-98, denied confirmation by the borrower in FY 2017-18, was also carried forward as fully doubtful. Criminal proceedings were initiated against Khazana Tradelinks and its directors after forged documents came to light, and the borrower was struck off in MCA records. - A fresh ₹4.64 crore confirmed excise liability joins a web of old disputes
Major- An order dated 18.11.2024 confirmed duty of ₹1.67 crore and penalties of ₹2.97 crore against the company, its Director and COO, against which appeals were filed on 12.02.2025. Other pending matters include income-tax demands aggregating ₹13.86 crore raised in computation sheets, and a ₹15.99 crore demand from the Development Authority for unmet production obligations at the Pune plant. A customs dispute involving a ₹19.35 lakh bank guarantee and writ petitions before the Bombay High Court remains disclosed with no liability accounted. - Reported profit has been repeatedly boosted by write-backs and waivers
Major- In FY2021-22, the company credited ₹78.85 crore as exceptional items from writing back concessions and waivers from Dena Bank, and ₹103.63 crore from writing back concessions and waivers from a Strategic Investor, after No Dues Certificates were issued. In FY2023-24 and FY2022-23, it wrote back excess provisions of ₹42.88 lakhs for property tax and ₹1.74 crore for sales tax after full-and-final settlements. The company has elected the lower 115BAA tax rate in every year from FY2019-20 through FY2025-26. - The statutory auditor resigned mid-term in 2021; the replacement is proposed for a second term
Major- Bastawala and Associates resigned effective 14 August 2021, citing "expressing their inability for the Audit". Jain Vinay & Associates was appointed to fill the vacancy on 3 September 2021 and is now proposed for re-appointment for a second five-year term at the 34th AGM. Total fees paid to the current auditor for FY ended March 31, 2026 were ₹2.15 lakhs. - No subsidiaries, joint ventures or associates for seven straight years
Clean- The company reported having no subsidiary, joint venture or associate company in every year from FY2019-20 through FY2025-26, with no consolidated financial statements prepared.
What to watch
- Next quarterly review. Q1 FY2027 results carry an adverse going-concern opinion for the quarter ended June 30, 2026.
- Winding-up path. The company's evaluation of options including winding up under Section 10 of the IBC, intimated to BSE on 10 Jul 2024, remains pending with no resolution date disclosed.
- Auditor re-appointment vote. Shareholders vote on the five-year re-appointment of Jain Vinay & Associates at the 34th AGM noticed for 28 September 2026.
- Excise appeals. Appeals against the 18.11.2024 order confirming ₹1.67 crore duty and ₹2.97 crore penalties were filed 12.02.2025, with no scheduled hearing date disclosed.
- Promoter share listing. The 12,50,000 promoter preferential shares remain pending listing with BSE Limited, noted as an exception in every secretarial audit report through FY2025-26.
Bottom line: This is a disclosed and audited record of a company that has stopped operating, with zero revenue, negative cash flow, and a board-approved path toward insolvency. The profit history has been shaped by write-backs and waivers. The risk is not hidden, it is in the auditor's own words, in the pending litigation, and in the unresolved regulatory non-compliances. Watch the winding-up path, the auditor vote, and the excise appeals.