Worldwide Aluminium Ltd Management Discussions.

Your Directors have pleasure in presenting the management discussion and analysis report for the year ended on March 31, 2019

1. INDUSTRY STRUCTURE AND DEVELOPMENTS:

During the year, the Company is engaged in the trading of all kinds of aluminium foils, aluminium sheets, strips, coils, PP caps etc in the domestic territory of India.

2. OPPORTUNITIES & THREATS, RISK & CONCERNS:

The areas of operations of the Company are largely challenged by the players from the unorganized sectors having lesser stakes into the Business. Global prices of Aluminium, domestic availability and other legal reforms has little bit hampered the growth and confidence into the market. However, with the strong team in place of the Professionals, the Company is poised to meet all the challenges and the Board is confident to meet all the challenges to which the Company may be exposed.

The Company is exposed to specific risks that are particular to its business, including interest rate volatility, economic cycle, market risk and credit risk. The management continuously assesses the risks and monitors the business and risk management policies to minimize the risk.

3. SEGMENT-WISE PERFORMANCE:

The Companys main business activity is trading of Aluminum Coils and other related items in the aluminium industry.

Your Company is continuously working towards building its brand image by introducing value added products and expanding its network in market.

4. OUTLOOK:

Your Company expects turn around in its performance in coming year on several initiatives Taken by the Company .The Company continues to explore the possibilities of expansion and will make the necessary investments when attractive opportunities arise.

5. INTERNAL CONTROL SYSTEMS & THEIR ADEQUEACY:

The Company has an Internal Control System, commensurate with size, scale and complexity of its operations. The internal financial controls are adequate and are operating effectively so as to ensure orderly and efficient conduct of business operations. The Company has appointed Mr. Sachin Arora, Practising Company Secretary, as Internal Auditors of the Company during the Financial Year and due to some unavoidable reasons he has resigned w.e.f 03rd April, 2019.The Board is under discussions for appointing the new Internal Auditors for the current Financial Year.

The Audit Committee in consultation with the internal auditors formulates the scope, functioning, periodicity and methodology for conducting the internal audit. The internal auditors carry out audit, covering inter-alia, monitoring and evaluating the efficacy and adequacy of internal control systems in the Company, its compliance with operating systems, accounting procedures and policies at all locations and submit their periodical internal audit reports to the Audit Committee. Based on the internal audit report and review by the Audit Committee, process owners undertake necessary actions in their respective areas. The internal auditor have expressed during the year, that the internal control system in the Company is robust and effective. The Board has also put in place requisite legal compliance framework to ensure compliance of all the applicable laws and that such systems are adequate and operating effectively.

6. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

During the year, the Company has recorded a turnover of Rs. 2013.37 Lakhs as compared to Rs.137.83 Lakhs in the previous year. But, Unfortunately, the Company has incurred a Net loss on after Tax basis, of Rs.115.44 Lakhs as compared to the Profit of 19.96 Lakhs of the previous year, for the year ended 31st March, 2019.

7. HUMAN RESOURCE DEVELOPMENT:

We are strong believers of developing and retaining talent by treating our employees with dignity, honesty and respect. We have a continued philosophy of hiring high performance individuals. To accomplish our goals, we are always on the look-out for talented, creative, ambitious individuals, driven by a passion to excel. We have hired some of the most talented and experienced individuals in their respective fields. Being a performance driven company, we have introduced several performance-driven tools. We are driven by principles of empowerment as we believe in inculcating a winning attitude among our employees by encouraging learning, self-development and by building effective leadership. A well-structured career path is created for each employee within the organization with a progression and succession plan made for each of them. As in the past, the Company has enjoyed cordial relations with the employees at all levels. The Company continues to run an in-house training program held at regular intervals and aimed at updating their knowledge about issues.

8. KEY FINANCIAL RATIOS

(i) Debtor Turnover (days)

Consolidated Debtors Turnover Days as on March 31, 2019 stood at 73 days versus 189 days at the end of March 31, 2018. This shows consistency in managing its credit with the customers and this also reflects improvement in managing the credit offered by the Company. Debtor Turnover (days) is calculated as Average Debtors/Total Consolidated Sales multiplied by 365.

(ii) Inventory Turnover (days)

Consolidated Inventory Turnover Days as on March 31, 2019 was at 36 days versus infinity at the end of March 31, 2018 (since there was no inventory either at the beginning or at the end of the year). Inventory (days) is calculated as Net Sales/Average Inventory.

(iii)Interest Coverage Ratio :

Since, during the financial year 2018-19 and 2017-18 the Company does not have any long term borrowings incurring interest obligations. Therefore, the Interest coverage ratio tends to be infinity.

(iv)Current Ratio

Consolidated Current as on March 31, 2019 stood at 3.84 times versus 21.38 times at the end of March 31, 2018. This reflects a strong liquidity or solvency of the Company.

(v) Debt to Equity Ratio

Since, during the financial year 2018-19 and 2017-18 the Company does not have any long term borrowings. Therefore, the Debt Equity ratio tends to be zero.

(vi)Operating Profit Margin (%)

Consolidated Operating Profit Margin as on March 31, 2019 stood at -6.95 % versus -7.54 % at the end of March 31, 2018. The Operating Profit Margin has been calculated as (Operating profit / Net sales) multiplied by 100.

(vii) Net Profit Margin (%)

Consolidated Net Profit Margin as on March 31, 2019 stood at -6.01% versus 14.64% at the end of March 31, 2018. The ratio is negative due to losses incurred by the company in the current year. The Net Profit Margin has been calculated as (Net profit / Net sales) multiplied by 100.

(viii) Return on Net worth (RONW)

Consolidated Return on Net Worth for FY 2018-19 stood at -22.50 % versus 3.34 % in FY 2017-18 (after adjusting for tax affected exceptional items in FY 2017-18). The ratio is negative due to losses incurred by the company in the current year.. The Return on Net worth has been calculated as (Net profit / Shareholders Funds) multiplied by 100.

9. CAUTIONERY STATEMENT:

Statements in this report on Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may be "forward-looking statements" within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed or implied.

Place: New Delhi By the Order of the Board of Directors
Date: 31st August, 2019 Worldwide Leather Exports Limited
Sd- Sd/-
Abhishek Jain Parag Jain
Joint Managing Director Managing Director
DIN: 02801441 DIN: 02803856