Western India Plywoods Ltd Management Discussions.

This report is prepared in compliance with the requirement of the Corporate Governance. It covers both performance and outlook of the Company. The Management accepts its responsibility for the integrated objectivity of the financial statements.

1. Industry structure and development:

The company is in manufacture of high quality plywoods, Hardboard, Pre-compressed boards, Densified wood, Furniture and low density fibre boards. The main customers are Railways, Automobiles, Packaging Industry and construction companies. The Company is in operation in this field for the last few decades and has already established a name in the market. The company is manufacturing low density fibre board by using waste sludge from the currency paper mills as part of the raw materials. The low density fibre board introduced has got both domestic and international market. The company is in also in the process and diversification in to new value added products.

2. Strength and opportunities

3 The major raw material required by the company is soft wood and waste wood for Hardboard, Timber for plywood. There is scarcity of these raw materials. However as the company is in commercial operation for more than 7 decades it could establish a good system of procurement.

3 The joint venture company started in Malaysia for manufacturing of veneers is meeting a major requirement of Raw materials for the company.

3 Competition from other manufacturers and cheap imports can affect the profitability of the company.

3 As the company is maintaining high quality for its products and the same is well accepted by the customers both in India and abroad. The company has established Research and Development Unit, One of the best of its kind in the wood based Industry. The company is also duly equipped to develop new product to meet the requirements of the market. The company believes from experience that customer loyalty will prove beneficial in meeting the challenge faced by it in the long run.

3 The Company has invested significantly in building its brand equity, which has led to high brand recall and has enabled entry into new product categories.

3 The industry will continue to see a strong uptrend in the mid to long-term driven by macroeconomic and industry factors like increasing disposable incomes, increased ease of availability of finance, increasing penetration levels and growing middle class.

3 Rising affordability and increasing premiumization of products in metros and urban towns.

3 The governments push for housing for all, increasing availability of electricity and GST rate reduction augur well for long term growth prospects of the sector.

3. Product wise performance (Rs in Lakhs)

Sl No PRODUCT 2019-2020 2018-2019
1 Hardboard 4680.83 4758.50
2 Plywood 1546.48 1752.45
3 Densified wood 1091.80 1332.48
4 Soft Board 1306.21 1208.00
5 Pre-compressed board 209.98 273.82
6 Pre-finished board 117.60 145.54
7 Furniture 105.48 124.34
8 Other sales 157.85 153.60
TOTAL 9216.25 9748.73

4. Audit and internal control system

The Company has Internal Control Systems commensurate with the nature of its business, size and complexities. Every quarter the Audit Committee reviews the adequacy and effectiveness of internal control systems and monitors the implementation of improvement actions. The Internal Auditors of the Company regularly reviews key processes to identify improvement opportunities and automation possibilities. During the year, key controls in operational, financial processes were tested to provide assurance regarding compliance with the existing policies and significant operating procedures etc., and no significant weaknesses or deviations were noted in operation of controls.

Further, the Statutory Auditors of the Company also carried out audit of the Internal Financial Controls over Financial Reporting of the Company as on March 31, 2020 and issued their report which forms part of the Independent Auditors report.

5. Industrial relations

The industrial segment was peaceful during the year. The Management wishes to acknowledge The efforts made by employees in the smooth working of the Company.

6. Material development in human resources and industrial relations including no. of people employed

The man power strength of the Company as on 31.3.2020 was 239. Being an ISO 9001-2015 certified Company; the Company conducts regular training programmes for the employees to impress on them the need for quality, productivity and transparency. These measures have helped to achieve cost effectiveness and improve the overall operational efficiency.

7. Discussion on financial performance with respect to operational Performance.

The high demand for low density fibreboard has improved the turnover. The company is hopeful of encashing on its opportunity.

8. Significant changes in financial ratios

During the year on a standalone basis there was no significant changes in financial ratios of the company, which are more than 25% as compared to the previous year.

9. Cautionary statement:

As stated earlier statements in the Management discussion and analysis report are in accordance with the Companys objectives, projections, estimates and expectations and may be "forward looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied and changes in Government regulations, tax laws and other statutes may affect the working of the Company.

10. Information on non-mandatory requirements

• The Company has not issued any GDR/ADR/Warrants or any convertible instruments.

• The Company is not maintaining a separate office for the Chairman

• Unpaid Dividends up to and inclusive of 2011-12 have been deposited in the investor Education and protection Fund as required under the relevant provisions.

On Behalf of the Board of Dirctors
Kannur T Balakrishnan
13.08.2020 Chairman