worth peripherals ltd Management discussions

<dhhead>MANAGEMENT DISCUSSION AND ANALYSIS REPORT</dhhead>

1. Industry Structure and Developments

Along with volatility in costs of Raw Materials, the industry is witnessing a phase of consolidation and installation of new production capacities.

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 customer’s 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. 2,10,65,72,998/- 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 to the initiatives taken by the Indian Government with regards to sustainable and recyclable material usage, corrugated packaging can witness a favourable 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 31^st March 2023 was at Rs. 2,17,99,35,957/- (previous year Rs. 2,21,70,45,742/-)

Profit : Profit after Tax for the year under review amounted to Rs.18,03,92,028/-(Previous Year Rs. 19,15,91,772/-)

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 114 employees on the payroll of the Company, apart from the contractual labourers.

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:

	Year Ended
Sr. No. Ratio	31.03.2023	31.03.2022	Deviation %
1 Debtors Turnover Ratio	8.19	8.36	tyle=font-family:Arial;mso-fareast-font-family:CIDFont+F1;mso-bidi-font-family: "Times New Roman">-1.96%
2 Inventory Turnover Ratio	10.83	10.98	-1.36%
3 Interest Coverage Ratio	230.76	141.02	63.63%
4 Current Ratio	7.53	2.91	158.88%
5 Debt Equity Ratio	0.02	0.15	-88.97%
6 Operating Profit Margin	11.01	11.50	-4.22%
7 Net Profit Margin	8.56	8.73	-1.93%
8 Return on Net Worth	12.63	15.31	-17.49%

10. Cautionary Statement.

The Statement made in this section describes the Company’s 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: 07th August, 2023