Worth Peripherals Ltd Management Discussions

1. Industry Structure and Developments

The industry is witnessing a phase of consolidation. Major paper manufacturers are entering the corrugation space. And there have been investments in increase of production capacities by many existing and new entrants in the industry.

Worth Peripherals Limited (to be referred to as "the Company" in future text), however, continues to successfully safeguard itself so as to not be heavily impacted by these industry developments

2. Opportunities and Threats

With industry experience spanning decades, robust business relationships with existing customers and additions of new customers, the Company is amongst the largest manufacturers of corrugated boxes in the country. Equipped with state-of-the-art machinery from Europe, Taiwan and Japan, the Company is consistently growing year on year.

While successfully onboarding prospective customers, the Company also sees an opportunity to add value to customers packaging needs by using high graphics while printing corrugated boxes, since these arts and graphics act as a medium of advertising and marketing towards end consumers. Alternatives to corrugated packing would serve as a threat to the company as well as the entire industry. However, keeping in mind the initiatives undertaken globally, corrugated packaging is known to be a biodegradable, recyclable and sustainable packing medium that in turn has the potential to replace non-sustainable packaging options.

3. Segment Wise or Product Wise Performance

The sale of corrugated boxes in the Financial Year 2022-23 amounted to Rs. 172,05,91,617/- bifurcated amongst the products Corrugated Boxes and Partitions

4. Outlook

With a growth in the economy, the purchasing power of the population is improving. Increased consumption will result in demand for packaging, including corrugated boxes. Additionally, due the initiatives taken by the Indian Government with regards to sustainable and recyclable material usage, corrugated packaging can witness a favorable increase in demand.

5. Risks and Concerns

One of the major risks in the corrugated industry is the increased prices of the basic raw material, i.e. Kraft Paper, which may have an adverse impact on our operations and financials. Besides this, huge working capital requirements can also be a matter of concern.

6. Internal Control System and Their Adequacy

The Company has an adequate internal control system and a defined organizational structure besides, internal rules and regulations for conducting the business. The Management reviews actual performance with reference to budgets periodically. The Company has an Audit Committee, Independent Statutory Auditors and Internal Auditors who submit reports periodically which are reviewed and acted upon

7. Financial Performance with respect to operational performance:

Sales: The Total Income of the Company for the year ended 31st March 2024 is at Rs. 183,28,18,447/- (previous year Rs. 217,99,35,957/-). Profit: Profit after Tax for the year under review amounted to Rs.15,89,27,858/-(Previous Year Rs. 18,03,92,028/-)

8. Material Developments in Human Resources/Industrial Relations Front, Including Number of People Employed

The Company has in place adequate numbers of employees, as are required, in its registered office as well as in its manufacturing facilities. Professionals with the required experience and knowledge are hired as and when needed by the Company.

The industrial relations of the Company with various suppliers, customers, financial lenders and employees are cordial. There are a total of 113 employees on the payroll of the Company, apart from the contractual laborers.

9. Details of significant changes

Pursuant to the provision of Regulation 34(3) of SEBI (LODR) Regulation 2015 read with Schedule V part B (1) details of changes in Key Financial Ratio is given hereunder:

10. Cautionary Statement.

The Statement made in this section describes the Companys objectives, projections, estimates, expectations or predictions may be "forward looking statements" within the meaning of applicable securities laws and regulations. Forward looking statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realized by the Company. Actual results could differ materially from those expressed in the Statements or implied due to the influence of external factors which are beyond the control of the Company. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statement based on any subsequent development, Information or events.

For and on behalf of the Board of Directors of Worth Peripherals Limited

Sd/-

Raminder Singh Chadha Chairman & Managing Director

DIN: 00405932

Place: Indore

Date: July 25, 2024