Tirth Plastic Limited is an Indian listed entity currently undergoing a profound structural and strategic transformation. Historically focused on the trading of specialized plastic materials, the company is pivoting toward a diversified conglomerate model. This transition is marked by a significant entry into the advertising sector, a complete overhaul of executive leadership, and a massive expansion of its financial and capital authorizations to facilitate inorganic growth. --- ### **Strategic Pivot: The Evokenexa Acquisition & Diversification** The company has moved beyond its traditional trading roots to embrace a growth strategy centered on the advertising industry. This is being executed through a major acquisition designed to provide immediate scale and market presence. * **Target Entity:** **Evokenexa Advertising Private Limited (EAPL)**. * **Acquisition Structure:** Tirth Plastic Limited has moved to acquire a **100% equity stake** (**36,78,452 shares**) in EAPL. * **Transaction Value:** The purchase consideration is valued at **Rs. 66.21 Crore**. * **Financing Mechanism:** The acquisition is structured as a **Share Swap**. Tirth Plastic Limited is issuing **1,47,13,808 equity shares** at a price of **Rs. 45 per share** (which includes a **Rs. 35 premium**). * **Strategic Intent:** This move is intended to diversify revenue streams, enhance board dynamism, and leverage the high-growth potential of the advertising sector to offset stagnation in the legacy plastics business. --- ### **Legacy Operations: Plastic Trading Portfolio** While the company is diversifying, its foundational segment remains the trading of industrial plastic components. However, this segment has recently faced severe operational headwinds. * **Core Product Focus:** * **Acrylic Solid Surfaces** * **Industrial Glue** * **Related Plastic Materials** * **Operational Status:** The company operates in a **single reportable segment** (Trading). In recent fiscal cycles, the company has reported **zero revenue from operations**, with financial survival currently dependent on **Other Income**. * **Inventory Concerns:** Auditors have identified **Rs. 1.29 Crore** of inventory as **non-movable**. While management asserts that the **Market Price** exceeds the **Cost**, the lack of turnover remains a critical focal point for recovery. --- ### **Financial Performance & Capital Scaling** Tirth Plastic Limited is aggressively expanding its statutory financial limits to support its new "investment and acquisition" mandate. The following tables illustrate the current financial state and the massive scale-up in authorized limits. **Comparative Financial Snapshot** | Metric | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | | **Revenue from Operations** | **Rs. 0.00** | **Rs. 0.00** | | **Other Income** | **Rs. 8.57 Lakhs** | **Rs. 8.42 Lakhs** | | **Net Profit / Loss** | **Net Loss** | **Net Loss** | **Expansion of Statutory Limits** To facilitate the EAPL acquisition and future inter-corporate investments, the company has approved the following increases: | Metric | Previous Limit | New/Proposed Limit | | :--- | :--- | :--- | | **Authorised Share Capital** | **Rs. 6.00 Crore** | **Rs. 21.00 Crore** | | **Borrowing Powers (u/s 180(1)(c))** | Standard | Up to **Rs. 500.00 Crore** | | **Investments/Loans/Guarantees (u/s 186)** | Standard | Up to **Rs. 500.00 Crore** | | **Related Party Transactions** | - | Up to **Rs. 500.00 Crore** | --- ### **Leadership, Governance, and Administrative Infrastructure** The company has refreshed its leadership and administrative partners to align with its new strategic direction. * **Executive Leadership:** **Mr. Jigar Mukeshbhai Shah** was appointed as **Managing Director and Chairman** for a **5-year term** effective **May 9, 2024**, tasked with leading the diversification efforts. * **Audit Oversight:** * **Statutory Auditors:** **M/s. S S R V & Associates** (Appointed for 5 years starting September 2025). * **Secretarial Auditors:** **M/s. A. Shah & Associates**. * **Administrative Updates:** Effective **July 18, 2025**, the company transitioned its **Registrar and Share Transfer Agent (RTA)** to **Satellite Corporate Services Pvt. Ltd.** * **Market Status:** The **revocation of the suspension for trading in equity shares** occurred on **December 16, 2022**, allowing the company to resume market activity and pursue fund-raising through **Preferential Issues** and **Rights Issues**. --- ### **Risk Profile & Contingencies** Investors should note several specific financial and operational risks highlighted in recent statutory filings and auditor reports. **1. Legal and Recovery Risks (Emphasis of Matter)** The company is pursuing several high-value recoveries. While management is optimistic, auditors have flagged these as significant uncertainties: * **Shrimm Construction Pvt Ltd:** **Rs. 1.43 Crore** recoverable due to a cancelled property agreement; refund is currently in process. * **M B Parikh Fin Stocks Ltd & M B Parikh & Co:** Combined claims of **Rs. 30.02 Lakhs**. Despite legal proceedings and a reported adverse court decision in early 2025, management continues to pursue recovery, though **provisions have been created** in the books. **2. Operational and Market Risks** * **Revenue Stagnation:** The inability to generate core operational revenue has led to persistent net losses. * **Promoter Activity:** During **FY 2023-24**, promoters **Varis Mahendrabhai Doshi** and **Gunjan Mahendra Doshi** divested a combined **3,97,611 shares** in the open market. * **Going Concern Considerations:** Statutory auditors have noted that their assessment of the company’s ability to meet liabilities within **one year** is based on current facts and does not serve as a guarantee of future viability. **3. Internal Control Framework** The company maintains a **Risk Management Policy** covering: * **Cyber Security** and IT infrastructure. * **Statutory Compliance** monitoring. * **Contingency Planning** for business continuity.