Worth Peripherals Ltd Management Discussions.

1. Industry Structure and Developments

The industry has seen changes in demand for corrugated boxes in tandem with the demand of FMCG goods. Since there was a slowdown in the economy during the first and last quarters of FY 2020-21, the same impact was felt on the pack-aging industry as well. The industry has also seen a reduction in price of its core raw material i.e. paper in the last 7-8 months.

Worth Peripherals Limited (to be referred to as "the Company" in future text), however, safeguarded itself and was not heavily

impacted by these industry developments.

2. Opportunities and Threats

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

Along with on boarding prospective customers, the Company also sees an opportunity to add value to customers pack-aging needs by

using high graphics while printing corrugated boxes, since these arts and graphics act as a medium of advertising for end consumers.

An alternative for corrugated packing would serve as a threat to the company and the industry as a whole. However, keeping in mind the initiatives undertaken by countries around the world, corrugated packaging is seen as a bio-degradable, recyclable and sustainable packing medium that in turn has the potential to replace non-sustainable packaging materials.

3. Segment Wise or Product Wise Performance

The sale of corrugated boxes in the Financial Year 2020-21 amounted to Rs. 1,59,30,60,796/- bifurcated amongst the products Corrugated

Boxes and Partitions.

4. Outlook

With a growth in the economy, purchasing power of the masses is improving and with more consumption, demand for packaging including corrugated boxes is bound to increase. Also due the initiatives taken by the Indian Government with regards to sustainable and recyclable material usage, the corrugated packaging can witness increased demands.

5. Risks and Concerns

One of the major risks in the industry is the increase in the prices of our basic raw material, i.e. Kraft Paper, which may have an adverse

impact on our operations and financials. Besides this, huge working capital requirements may be a matter of concern.

6. Internal Control System and Their Adequacy

Internal checks and controls covering operations of the Company are in place and are constantly being improved upon. Adequate system exists to safeguard the Companys assets through insurance on reinstatement basis and maintenance of proper records. The company has well defined procedures to execute financial transactions.

Internal audit is being conducted by an independent firm of Chartered Accountants. The internal auditor monitors and evaluates the efficiency and adequacy of internal control systems in the organization, its compliance with operating systems, accounting procedures and policies of the Company. Based on the observations of the internal auditor, the process owners undertake corrective actions and improvements in their respective areas. Significant auditobservations and corrective actions, thereupon, are presented to the Audit Committee.

In addition to the above, the Company has formulated a Vigil Mechanism (Whistle Blower Policy) for its Directors and Employees for

reporting genuine concerns about unethical practices and suspected malpractices.

7. Discussion on Financial Performance with Respect To Operational Performance

The Company continues to see growth in its overall performance in the Financial Year 2020-21, driven by the perfor-mance of the segment in which the Company operates. The total income of the Company increased to Rs.1,61,08,33,015/- from Rs. 11,32,74,44,646 /- in the previous year. The profit before tax amounted to Rs. 21,46,80,500 /- as against Rs. 17,11,89,893/- in the previous year. The net profit after tax was increased to Rs. 15,98,22,088 /- as against Rs. 14,00,02,722/- in the previous year.

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 109 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:

S. No. Ratio Year Ended Deviation %
31.03.2021 31.03.2020
1 Debtors Turnover Ratio 7.76 7.67 1.17
2 Inventory Turnover Ratio 8.98 7.15 25.59
3 Interest Coverage Ratio 26.51 14.14 87.48
4 Current Ratio 8.49 6.34 33.91
5 Debt Equity Ratio 0.28 0.34 -17.65
6 Operating Profit Margin 13.85 13.88 -0.22
7 Net Profit Margin 9.42 10.12 -6.92
8 Return on Net Worth 15.02 15.33 -2.02

10. Cautionary Statement.

Statement in this 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 could differ materially from those expressed or implied. Important factors that could make a difference to the companys operations include raw material availability and prices, cyclical demand, movements in companys principal markets, changes in Government regulations, tax regimes, economic developments within and outside India and other incidental factors.

For and on behalf of the Board of Directors of
Worth Peripherals Limited
Chairman & Managing Director
Place: Indore Raminder Singh Chadha
Date : 13 August, 2021 DIN: 00405932