Excellent Wires and Packaging Ltd Management Discussions

OVERVIEW

The Company is in the business of manufacturing of a diverse range of high-quality wires, including Spring Steel Wire, Galvanized Wire (GI Wire), Round Stitching Wire, Brass Wire, Copper Wire, Stainless Steel Wire, Mild Steel (M.S.) & Low Carbon Wire, H.B. & H.H.B. Wire, Annealed Wire, Spiral Wires, and Baling Wires. The Company has also started the manufacturing and trading of Precious Metals like Gold and Silver Wires which in majority caters to the Gems & Jewelry and other related Industries.

One of the primary forces behind industrialization has been the use of metals. Steel has traditionally occupied a top spot among metals. Steel production and consumption are frequently seen as measures of a countrys economic development because it is both a raw material and an intermediary product. Therefore, it would not be an exaggeration to argue that the steel sector has always been at the forefront of industrial progress and that it is the foundation of any economy.

The wire and cable industry is an essential segment of the electrical equipment industry, supporting infrastructure, power, construction, automobile, and telecom sectors. The Indian wire market has witnessed significant growth driven by government initiatives like Make in India, smart cities, and rural electrification. Increasing industrialization and infrastructure development have also accelerated demand for wires and metal products.

Packaging currently stands as the fifth largest sector in the Indian economy, reflecting its pivotal role in driving industrial growth and innovation. With an annual growth rate of 22-25%, the industry has become a preferred hub for packaging solutions, bolstered by advancements in technology and infrastructure.

India has the largest population in the world in the age bracket of 5-24 years with 580 million people, presenting a huge opportunity in the education sector. At, the same time Indias auto components industrys market share has significantly expanded, led by increasing demand for automobiles by the growing middle class and exports globally. India has potential to become a global manufacturing hub and by 2030, it can add more than US$ 500 billion annually to the global economy.

Technological advancements are enhancing productivity and quality, while rising export potential offers opportunities for market expansion. All of the above factors and industries will drive the demand for our Wires & Wire products including Galvanized wires, M.S. wires, Copper wires, and Steel wire ropes, etc.

INDUSTRY STRUCTURE AND DEVELOPMENTS

India is the worlds second-largest producer of crude steel, with an output of 125.32 MT of crude steel and finished steel production of 121.29 MT in FY23.

Indias steel production is estimated to grow 4-7% to 123-127 MT in FY24.

The growth in the Indian steel sector has been driven by the domestic availability of raw materials such as iron ore and cost-effective labour. Consequently, the steel sector has been a major contributor to Indias manufacturing output.

The Indian steel industry is modern, with state-of-the-art steel mills. It has always strived for continuous modernisation of older plants and up-gradation to higher energy efficiency levels.

In the past 10-12 years, Indias steel sector has expanded significantly. Production has increased by 75% since 2008, while domestic steel demand has increased by almost 80%. The capacity for producing steel has grown concurrently, and the rise has been largely organic.

India has observed a substantial rise in the demand for wires and cables due to the countrys ambitious renewable energy goals and the growing awareness of the potential of renewable energy, such as solar and wind power. The significant growth of solar panels in India is creating a considerable demand for cables.

While the manufacturing industry growth with Government initiatives like Make In India has accelerated the pace of ever-growing packaging industry. Similarly, the push by the government of India for Infrastructure development has increased the demand of Metal wires for construction of roads, bridges, buildings, etc.

OPPORTUNITIES AND THREATS

Opportunities/Strength

• Rise in demand for metal wires & wire products

• Increasing focus on renewable energy and electrification projects

• Growth in housing and infrastructure sectors

• Export potential for value-added wire products

Threats

• Volatility in raw material prices (especially alloy & precious metals)

• Intense competition from organized and unorganized players

• Regulatory and environmental compliance challenges

• Import dependency for certain high-grade raw materials

• Power and logistics cost fluctuations

RISK AND CONCERNS

• Raw material price fluctuations may impact profitability

• Delay in infrastructure projects can affect order inflow

• Compliance and regulatory changes may increase operational costs

• Rising competition from cheaper imports

• Environmental and sustainability challenges

Financial Performance with respect to Operational Performance

The Total Turnover of the Company is Rs. 2,243.90 (In Lakhs) in current year and Rs. 1,540.82 (In Lakhs) in previous year indicating increase by 45.63%. The Company has earned a Profit of Rs. 111.67 (In Lakhs) as compared to Rs. 82.22 (In Lakhs) in the previous year.

Details of significant changes in key financial ratios

In accordance with the amended SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015, the Company is required to give details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations thereof:

The Company has identified following ratios as key financial ratios:

Particulars	FY 2024-25	FY 2023-24	% Change	Reason for change of 25% or more as compared to the immediately previous financial year
Trade Receivable Turnover Ratio	6.76	7.79	-13.18%	NA
Inventory Turnover	7.42	8.65	-14.19%	NA
Interest Coverage Ratio	17.64	5.21	238.74%	During the year, the company recorded an increase in Earnings Before Interest and Tax (EBIT) and a reduction in interest expenses, resulting in improved ratio.
Current Ratio	17.06	1.63	945.44%	During the year, an increase in current assets, along with a reduction in current liabilities through payments to vendors and creditors, led to an improvement in the Current Ratio.
Debt Equity Ratio	-	0.56	100.00%	During the year, there has been reduction in debt through loan repayments and an increase in shareholders equity
Net Profit Margin	0.05	0.05	-5.71%	NA
Return on Capital Employed	0.06	0.27	-77.05%	During the year, both net profit and capital employed increased, resulting in an improved Return on Capital Employed (ROCE)

Internal Control Systems and their adequacy

The company has implemented proper system for safeguarding the operations/business of the company, through which the assets are verified and frauds, errors are reduced and accounts, information connected to it are maintained such, so as to timely completion of the statements. The Company has adequate systems of Internal Controls commensurate with its size and operations to ensure orderly and efficient conduct of business. These controls ensure safeguarding of assets, reduction and detection of fraud and error, adequacy and completeness of the accounting records and timely preparation of reliable financial information. The company gets internal audit and verification done at regular intervals. The requirement of having internal auditor compulsory by statue in case of listed and other classes of companies as prescribed shall further strengthen the internal control measures of company.

Disclosure of Accounting Treatment

These Financial statements of the Company are prepared in accordance with India Accounting Standards, notified under section 133 of Companies Act, 2013 read along with Companies (Indian Accounting Standards) Rules, 2015 as amended and other relevant provisions of the Act.

Risk Management

The Company has established a well-defined process of risk management, wherein the identification, analysis and assessment of the various risks, measuring of the probable impact of such risks, formulation of risk mitigation strategy and implementation of the same takes place in a structured manner. Though the various risks associated with the business cannot be eliminated completely, all efforts are made to minimize the impact of such risks on the operations of the Company. Necessary internal control systems are also put in place by the

Company on various activities across the board to ensure that business operations are directed towards attaining the stated organizational objectives with optimum utilization of the resources. The Company, through its risk management process, aims to contain the risks within its appetite. There are no risks which in the opinion of the Board threaten the existence of the Company.

Cautionary Statement

Certain statements in the reports of the Board of Directors and Managements discussions and analysis may be forward looking statements within the meaning of applicable laws and regulations. Actual results could differ materially from those expressed or implied since Companys operations are influence by many external and internal factors beyond the control of the Company. The Company assumes no responsibility to publicly amend, modify or revise any of these statements on the basis of any subsequent Developments, information or events.

Acknowledgement

Your directors take this opportunity to express their deep sense of gratitude to the vendors, business associates, employees, investors and banks for their continued support and co-operation during the year under review.

For and on behalf of the Board of Directors Excellent Wires and Packaging Limited (Formerly known as Excellent Wires and Packaging Private Limited)
Rachit Masalia	Darshil Shah
Managing Director	Director
DIN:09108018	DIN:09108019
Date: 26.07.2025