Worth Peripherals Ltd Management Discussions.

This section shall include discussion on the following matters within the limits set bythe listed entitys competitive position:

A. Industry structure and developments.

Packaging is one of the fastest growing industries and stands at USD 700 billion globally. It has grown higher than GDP in most of the countries. In a developing country like India, it grew at a CAGR of 16% in the last five years. The Indian packaging industry constitutes ~4% of the global packaging industry. The per capita packaging consumption in India is low at 4.3 kgs, compared to developed countries like Germany and Taiwan where it is 42 kgs and 19 kgs respectively. However in the coming years Indian packaging industry is expected to grow at 18% p.a. wherein, the flexible packaging is expected to grow at 25 % p.a. and rigid packaging to grow at 15 % p.a.

B. Opportunities and Threats.

The Company is amongst the largest manufacturers of corrugated boxes in the country. It is equipped with state of the art machines imported from Europe, Taiwan and Japan. With age long experience of the promoters and healthy business relations with its customers, business with existing customers is growing year by year. The Company is making concerted efforts to acquire new customers. The Company is also planning to add new machines to enhance the capacity and capability with more efficiency. The Company sees an opportunity in Value Added high graphic printed Corrugated Boxes. These act as a medium of display advertising for end consumers. The company plans to add processes / equipments that are capable of manufacturing more of such Value Added products.

A threat scenario would be an alternative to Corrugated Packaging. However, seeing to the initiatives taken up by countries all over the world (including India) corrugated packaging is a promising, bio-degradable, recyclable and sustainable packaging medium that has the potential to replace non-sustainable / non-recyclable packaging mediums.

C. Segment wise or product-wise performance.

The Sale of Corrugated boxes in the Financial Year 2017-18 amounted to Rs.1,47,09,56,940/- bifurcated amongst the products Corrugated Boxes and Partitions.

D. Outlook.

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

E. 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 financial conditions. Besides this, the huge working capital requirements may be a matter of concern.

F. Internal control system and their adequacy.

The Company has adequate and efficient internal and external control system, which provides protection to all its assets against loss from unauthorised use and ensures correct reporting of transactions. The internal control systems are further supplemented by internal audits carried out by the respective Internal Auditors of the Company and Periodical review by the management. The Company has put in place proper controls, which are reviewed at regular intervals to ensure that transactions are properly authorised, correctly reported and assets are safeguarded. The Audit Committee of the Board addresses issues raised by both the Internal and Statutory Auditors, to keep constant check on cost structure and to provide adequate financial and accounting controls and implement accounting standards. 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

G. Discussion on financial performance with respect to operational performance.

The Company continues to see marginal growth in its overall performance in the financial year 2017-18 driven by the performance of the segment in which the Company operates. The total income of the Company increased to Rs. 1479233271.00/- from Rs. 1365028811.00/- in the previous year. The profit before tax amounted to Rs. 181726917.00/- as against Rs.147470197.00 /- in the previous year. However, the net profit after tax was decreased to Rs.67404517.00/- as against Rs. 103462438.00/- in the previous year (due to the provision for deferred tax as per the accounting standards).

H. Material developments in Human Resources / Industrial Relations front, including number of people employed.

Material developments in Human Resources / Industrial Relations front including number of people employed. The Company has in place adequate number of employees as required in its Registered Office and in its Godowns. Professionals with required amount of experience and knowledge are hired on need to need basis by the Company The Industrial relation of the Company with various suppliers, customers, financial lenders and employees is cordial. There are a total of 107 employees on the payroll of the Company apart from Contract Labours.

For and behalf of the Board of Directors of
Worth Peripherals Limited
Sd/-
Chairman & Managing Director
Place: Indore Raminder Singh Chadha
Date: 23 July, 2018 DIN : 00405932