Wim Plast Ltd Management Discussions

Economic Overview

Global

In 2024, the global economy experienced moderate growth of 3.3% (IMF World Economic Outlook, April 2025) amid a challenging macroeconomic environment. Persistent geopolitical tensions, disruptions in trade routes and high interest rates in major economies created headwinds for global trade and consumption. However, resilient labour markets, easing inflationary pressures and stable private consumption helped sustain economic activity, particularly in emerging markets.

Indian

India remains a bright spot in the global economy, with GDP growth estimated at 6.5%^* in F.Y. 2025 driven by strong domestic consumption, infrastructure investments and policy reforms.

The emerging markets while impacted by the tariff shocks continue to be the growth drivers and are expected to grow by 3.7% in 2025 and 3.9% in 2026.

As a Company, we are well-positioned to leverage Indias economic momentum by expanding our market presence, strengthening our digital and omnichannel strategies and continuously innovating to meet evolving consumer needs. With a sharp focus on sustainability, consumer-centricity, we remain confident in delivering strong growth and long-term value creation in 2025 and beyond.

The rapid adoption of e-commerce including Quick commerce is also reshaping the sector, offering brands new ways to engage with consumers. We have a wide range of products to focus on better productivity. Our product range is bifurcated into different categories to target the end customer. In this line, this year, we have launched products in the kids range under the sub-brand "Kidzbee". We have acquired rights from renowned studios and other beloved franchises to use their iconic intellectual properties (IPs), in order to create engaging and attractive products that kids and families will love.

Also, the Company has launched range of products to cater the HORECA market. These products are premium in nature and replacement of high end, wooden or steel chairs. This market is at nascent stage and we expect it will grow once the market starts using them. These products preserve aesthetics and ensure the strength & other parameters without compromising other features of plastic like being maintenance free, termite free, lightweight and long lasting, etc.

The Companys focus has remained on premiumization of the products and on giving high end products at competitive prices. According to the latest Bureau of Indian Standard (BIS) rules & regulations, it is mandatory for manufacturers and importer to obtain BIS certificate/ISI mark & use of Standard Mark for sale, import, or distribution of Furniture products before selling them into the Indian market which will be implemented by the end of this F.Y. We are sure with this implementation we would be in a position to give alternatives to customers, better products at a replacement of import. The Company has factories at all 4 (four) zones to service the market. Also, the products are available at retail stores, modern trade, selling through e-commerce and supplying to government and private institutions, etc. In order to enhance and elevate service excellence, the Company has well implemented digital Sales force Service CRM to improve responsiveness and internal workflow processes.

The Company owns one of the popular brand in plastic household. The Company is also working on many fronts to improve the visibility of the products - offline & online. However, there is competition from unorganized manufacturers. The market for them is growing as they have advantage of being cost-effective for using re-processed/ non-standard material. Our Company is focusing on value added quality products and we are sure with growing income & education, people will understand the quality and start recognizing it. So, our Companys focus remained on producing good quality products at affordable prices.

We continued to progress well on our innovation agenda, launching 28 (Twenty-eight) new products during the year under review.

The Companys brand "CELLO" is a well-known brand whose products are available in various categories of household. The Company launches new products at regular intervals and has the largest range in plastic moulded furniture in all categories including chairs, baby chair, table, trolleys, cabinets and various utility products. Products with this brand are available for more than 5 (five) decades & known and available for all kinds of population and age groups.

The brand is known for quality in all range of products, not only for premium plastic but also for the product range in steel & glass, categorizing wide range of household consumers. The Company has PAN India presence and is equally popular. The Company has production facilities in all 4 (four) zones with various depots to timely cater the end consumer. The production facilities in all zones are utilized to its optimum level to compete with the local manufacturers.

The Company is operating in highly fragmented market with continuous increase in competition from regional and local players. Our strategy will remain competitiveness with focus on innovation & quality. This will help us to differentiate ourselves & maintain a competitive edge.

Our internal financial control framework is commensurate with the size and operations of the business and is in line with the requirements of the regulations. We have laid down adequate procedures and policies to guide the operations of our business.

The Company has adequate and effective Internal Financial Control System (IFC), which ensures that all its assets are safeguarded & protected against loss of unauthorized use and all its financial transactions are authorized, completely recorded and reported correctly in a timely manner.

The Companys Enterprise Resource Planning ("ERP") system of SAP S/4HANA is well implemented for ensuring day-to-day accounting transaction and financial reporting. Its ERP along with allied information technology solutions provide a strong technology architecture for financial reporting controls.

The Audit Committee in its periodical meetings reviews the adequacy of IFC and procedures and suggests areas of improvement. Independence of the Audit Committee and compliance is ensured by direct reporting of the Internal Auditors to the Audit Committee.

Both Internal Auditors and Statutory Auditors independently evaluate the adequacy of IFC and assess the need for increase in the scope of coverage in specific areas. Based on the Audit observations and suggestions, sustained remedial measures are being taken.

The compliance of Secretarial functions is ensured by way of Secretarial Audit.

The compliance relating to Cost records of the Company is ensured by way of maintenance of cost records, which is verified

Vigil mechanism/Whistle Blower policy

The Company has in place well defined Vigil mechanism/Whistle Blower policy headed by Chairman of the Audit Committee.

CSR

Through the Corporate Social Responsibility (CSR) initiatives, Company strives to uplift the underprivileged sections in education. The Companys efforts are guided by a mission -like dedication to making a tangible difference in the lives of those in need. Also, it believes it is essential to prioritize education and provide opportunities to those who may not have access to it otherwise. Through the educational initiatives, Company empowers individuals to lead a brighter future.

Cyber Security

We have prioritized creating and improving cybersecurity awareness by educating and training users about the latest threats, policies, and best practices for risk mitigation. We have ensured strong safeguards of data and information by monitoring, detecting, and preventing unauthorized privileged access to critical resources.

Risk management

The Board of Directors of the Company have formed a Risk Management Committee to frame, implement and monitor the risk management plan for the Company. The Committee is responsible for reviewing the risk management plan and ensuring the effectiveness. The Committee considers the risks that impact the mid-term to the long-term objectives of the business, including those reputational in nature and provides an update to the Board on the Companys risks and mitigation plans outlined in the risk registers.

Internal Business Review

The Company lays down well thought out business plan for each year and from the annual business plan, detailed budget for revenue & capex for each quarter are determined.

The Company places a strong emphasis on talent management, succession planning, performance management and learning & development initiatives to foster inspiring, strong and trustworthy leadership.

The Company emphasizes diversity and inclusion; facilitate collaboration and creativity, nurturing a progressive workforce. Learning opportunities enhance employee engagement, boost productivity, reduce turnover and cultivate a positive culture.

As of 31^st March 2025, the total employee strength stood at 281.

Labour relations across all India operations remained cordial during the year.

In the preparation of financial statements, there is no treatment of any transaction different from that prescribed in the Accounting Standards notified by the Government of India under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014; guidelines issued by the Securities and Exchange Board of India and other accounting principles generally accepted in India.

The Finance Cost is almost same as compared to the previous F.Y. The cash profit of the Company has gone up. So, it is showing improvement in coverage ratio.

ii. Current Ratio The current ratio has improved during the year as compared to the previous year, primarily due to an increase in current investments. The Company has strategically deployed surplus funds into short-term investments, which are classified under current assets.

Certain statements made in the Management Discussion and Analysis Report relating to the Companys objectives, projections, outlook, expectations, estimates and others may constitute forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ from such expectations, whether expressed or implied. Several factors couldmake significant difference to our operations. These include climatic, geo-political and economic conditions affecting demand and supply, competitive pressures, changes in currency exchange and interest rates, government regulations and taxation, any epidemic or pandemic or natural calamities and such other factors over which we do not have any direct/ indirect control.