Worth Peripherals Ltd Management Discussions.

This section shall include discussion on the following matters within the limits set by the listed ent-itys competitive position:

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 2019-20, the same impact was felt on the packaging 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, safe-guarded 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 scanning 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 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 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 2019-20 amounted to Rs.1,31,97,34,859/- bifurcated amongst the products Corrugated

Boxes and Partitions.

4. Financial Performance

The Financial Statement of the Company have been prepared in accordance with the Indian Accounting Standard (IND-AS) Specified under Section 133 of the Companies Act, 2013 and the applicable Rules, as amended from time to time and other provision of applicable laws. The salient parameters of the Standalone Financial Performance of the Company during the year under review as compared to previous year as under: (Amount in Lakhs)

Particulars 2019-20 2018-19
Income from Operations 13274.45 15192.72
Other Income 558.95 213.35
Total Income 13833.40 15406.07
Expenditures (Excluding Interest & Depreciation) 11554.73 13308.82
Profit before Interest and Depreciation Tax 2278.67 2097.26
Less: Depreciation 436.45 351.51
Less: Interest 130.32 82.23
Profit before tax 1711.90 1663.51
Less: Tax Expenses (including Deferred Tax) 311.87 365.38
Profit After tax 1400.03 1298.13
Earning per Share
- Basic and Diluted 8.89 8.24
8.89 8.24

5. Outlook

With the growth in economy, purchasing power of the masses is improving and with more con-sumption, 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.

6. 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. Be-sides this, the huge working capital requirements may be a matter of concern.

7. Internal Control System and Their Adequacy

The Company has an adequate and efficient internal as well as external control system, which pro-vides protection to all its assets against loss from unauthorized 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 authorized, correctly reported and assets are safeguarded. The Audit Committee of the Board addresses issues raised by both the Internal and Statutory Auditors, to keep a constant check on cost structure, to provide adequate financial and accounting controls and implementing 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 sus-pected malpractices.

8. Discussion on Financial Performance With Respect To Operational Performance

The Company continues to see marginal growth in its overall performance in the financial year 2019-20 driven by the performance of the segment in which the Company operates. The total in-come of the Company decreased to Rs. 1,32,74,44,646/- from Rs. 1,51,92,72,751in the previous year. The profit before tax amounted to Rs. 17,11,89,893/- as against Rs. 16,63,51,485/- in the pre-vious year. However, the net profit after tax was increased to Rs.14,00,02,722/- as against Rs. 12,98,13,092 in the previous year.

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

The Company has in place adequate number 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 is cordial. There are a total of

104 employees on the payroll of the Company, apart from the contract labourers.

For and behalf of the Board of Directors of
Worth Peripherals Limited
Chairman & Managing Director
Raminder Singh Chadha
Place: Indore DIN : 00405932
Date: 04 September, 2020