Boss Packaging Solutions Ltd Management Discussions

Industry Structure and Development:

The machinery industry in India is undergoing significant transformation, driven by increasing demand across various sectors such as pharmaceuticals, food and beverages, personal care, chemicals, and FMCG. The rising need for automation, precision, hygiene, and compliance with global packaging standards is pushing manufacturers to adopt advanced solutions.

Indias packaging industry is poised for rapid growth expected over the next five years. The emphasis on sustainable packaging, compliance with safety regulations, and increased exports are further catalyzing demand for innovative and customized packaging machinery.

Overview of the Company:

Our company has well-equipped manufacturing facilities with registered office at Shed No. 2502, G.I.D.C. Ind. Estate, Nr. Mahavir Rolling Mill, Phase-4, Vatva, Ahmedabad-382445, Gujarat. From a single type equipment manufactured to facilitate only sticker labelling machine in 2012, we have expanded our equipment portfolio to wide range of packaging machines which includes a comprehensive range of packaging machinery such as, industrial packaging machines with Semi-Automatic or Automatic Liquid Filling Machines, Semi-Automatic or Automatic Screw or ROPP Capping machine, Pick and Place Screw Capping Machines. Wide range of SelfAdhesive Sticker Labelling Machines, Hologram Applicator Machines, Shrink Sleeve Applicator Machine, Conveyors and Turn Tables, Air Jet Cleaning Machine, Semi-Automatic or Automatic Shrink-Wrapping Machines (Web Sealer), Electric Tunnels and Winder, Rewinder and customized atomization to cater to diverse customer requirements.

Competitive Strengths:

Our success depends upon our strong marketing and distribution network in the domestic and export market. We have a well-diversified customer base across varied end-use industries such as edible oil, lubricants, chemicals, cosmetics, homecare, pharmaceuticals, viscous liquid, juices and dairy, agriculture and pesticides, food and ancillaries, cosmetic and toiletries, and distilleries and breweries from all over India. Our Company has a varied product base to cater to the requirements of our customers. Our product portfolio includes diversified variety of Labelling, Packing, Filling, Sealing Machines, Accessories and Full Packaging Line that finds its application across various industries. Our range of products allows our existing customers to source most of their packaging machine requirements from a single vendor and also enables us to expand our business from existing customers, as well as address a larger base of potential new customers.

Business Strategies, Opportunity and Threats:

Enhancing our presence in additional regions will enable us to reach out to a larger market. Further, our Company believes in maintaining long term relationships with our customers. We aim to achieve this by

maintaining the high quality, timely delivery, competitive pricing and reliability of our products and after sales and services. We intend to enter and capture new markets in India and increase our geographical presence and thereby increase our customer base by adding various packaging machines in our portfolio.

Our Company intends to focus on adhering to the quality of our offerings. This is necessary so as to make sure that we maintain the high-quality standards for our offerings and get repeat orders from our existing customers. This will also aid us in enhancing our brand value and further increase the business.

We intend to leverage our technological expertise, design capability and integrated operations to offer quality products in a cost-efficient manner. Additionally, we are in to the process of developing Aseptic Brick Pack Machine / High Speed BOPP Labelling Machine / Bottle Unscrambler. We believe that the growing demand for packaging lines presents a significant opportunity for us.

We continue to focus on investing in automation, modern technology and equipment to continually upgrade our products including the quality of our products to address changing customer preferences as well as to improve operational efficiency.

The Company operates in the capital goods industry which is sensitive to general economic downturn. Our business is working capital intensive. If we experience insufficient cash flows to meet required payments on our working capital requirements, there may be an adverse effect on the results of our operations.

Risks and Concerns:

The Company is exposed to a number of risks, including Regulatory and compliance changes across different markets, Supply chain disruptions and logistical challenges, Rising interest rates and inflationary pressures and availability of skilled manpower. To mitigate these risks, the Company follows a robust risk management framework and continuously monitors macroeconomic and industry developments.

Segment-wise or product-wise performance:

The Company currently has only one segment of business i.e., manufacturing of special purpose machineries.

Internal control systems and their adequacy:

The Company has an Internal Control System, commensurate with the size, scale and complexity of its operations. The scope and authority of the Internal Audit function is well defined in the organization. The Internal Audit Department monitors and evaluates the efficacy and adequacy of Internal Control Systems in the Company, its compliance with operating systems, accounting procedures and policies at all locations of the Company. Based on the report of Internal Audit function, process owners undertake corrective action in their respective areas and thereby strengthen the controls. Significant audit observations and corrective actions suggested are presented to the Audit Committee of the Board.

Financial and Operational Performance:

During financial year 2024-25, the Company continued its growth trajectory and registered improved performance in terms of revenue and profitability.

There is a significant change in the key financial ratios for the year 2024-25 which are as below:

Notes for change in ratios:

• Current ratio: Due to increase in inventories and fixed deposits - current assets.

• Debt-equity ratio: Due to issue of shares under IPO.

• Debt service coverage ratio: Due to repayment of borrowings - long term debt.

• Return on equity ratio: Due to increase in shareholders fund in current year

• Inventory turnover ratio: Due to increase in average inventories.

• Trade receivables turnover ratio: Due to decrease in average account receivables.

• Trade payables turnover ratio: Due to increase in total purchases.

• Net capital turnover ratio: Due to increase in net working capital.

• Return on capital employed: Due to increase in capital employed.

Material developments in Human Resources / Industrial Relations front, including number of people employed:

We believe that our employees are the backbone of our organization. We are committed to provide equal opportunities to all our employees and it emphasizes on welfare of its employees and it strives to engage and retain talented workforce at all levels. There exist peaceful and amicable relations with our employees. As on 31^st March, 2025, there were total 79 (Seventy-Nine) permanent employees on the pay roll of the Company.

Cautionary Statement:

By order of the Board of Directors Boss Packaging Solutions Limited

Place: Ahmedabad Date: 11/08/2025

Manishbhai Brahmbhatt

Managing Director and Chairman DIN:05154924

Ketan Thakkar

Executive Director DIN: 05154897