Wim Plast Ltd Management Discussions

Overview

The global economy is projected to grow by 3.2% in both CY 2024 and CY 2025. This growth is expected to be supported by accelerated disinflation and a stable outlook for world trade. Moreover, diminishing inflationary pressures may lead to lower borrowing costs and increased consumer confidence. However, high geopoliticaltensionspose -term risk to economic activity and significantnear inflation. This risk is particularly pronounced if geopolitical conflicts in the Middle East and along the Red Sea route increasing logistics costs and energy and commodity prices, thereby raising the possibility of supply disruptions. Additionally, ongoing service price pressures could result in unexpected inflation spikes and prompt financial markets to reassess expectations of monetary policy easing.

The Companys wide-ranging and adaptable product range, coupled with an assurance of superior quality and affordability, has solidified the presence in the market and helped us flourish, even amidst challenging circumstances. From the outset, company has focused on enhancing customer satisfaction, which drives us to continually innovate. This year, the Company has widened the range of products and explored new categories, prioritizing the customers. Supporting our operations are our in-house manufacturing capabilities, which also improve our quality control and cost efficiency, enabling us to offer high-quality products at competitive prices. This has allowed us develop products that resonate with our customers, underpinning our enduring success.

The Company offers an array of premium products and also caters to all price points, ensuring accessibility for consumers across different economic segments. The Company is proud of the ability to anticipate evolving market trends and introduce cutting-edge products, which enable us to significantly grow our market reach. Through innovation and product diversification, Company has expanded product portfolio to cater to varied consumer demands across segments.

The Companys distribution system includes direct retail, wholesale distribution and online platforms, which have become a pivotal driver of growth in the digital age. The strength of our e-commerce presence allows us to reach a broader audience and respond swiftly to market demands. As Company continues scaling the operations, it aims to successfully introduce new categories and expand existing ones.

The Company aims to strengthen market position and increase customer loyalty through effective brand building and marketing strategy.

Additionally, Company intends to boost the visibility on e-commerce platforms.

Through the Corporate Social Responsibility (CSR) initiatives, Company strives to uplift the less privileged sections in education. The

Companys efforts are guided by a mission-like dedication to making a tangible differencein the lives of those in need. Also, it believes it is essential to prioritize education and provide opportunities to those who may not have access to it otherwise. Through the educational initiatives, Company empowers individuals to lead a brighter future.

Internal Control

The Company has adequate, proper and well placed Internal Financial Control System, which ensures that all the assets are safeguarded and all the transactions are authorized, recorded and reported correctly in a timely manner.

Internal Auditors comprising of professional firms of Chartered Accountants have been entrusted to conduct regular internal audits and report to the Management, the lapses, if any. Both Internal Auditor and Statutory Auditor independently evaluate the adequacy of Internal Control System. Based on the Audit observations and suggestions, follow-up, remedial measures are being taken including review and increase in the scope of coverage, if necessary.

Independence of the Audit and Compliances is ensured by direct reporting of Internal Auditors to the Audit Committee of the Board. The Audit Committee of Directors in its periodical meetings, review the adequacy of Internal Financial Control System and procedures and suggest areas of improvement.

Risk Management

Numerous macroeconomic factors can significantly influence business operations including economic spending and require adjustments in pricing and promotional strategies to maintain market resilience. Our Business also faces raw material price risk, necessitating vigilant inventory management and strategic pricing adjustments to mitigate financial company diversify and enhance distribution network to safeguard market presence and customer reach, reducing dependence on single channels. Moreover, company prioritize prudent financial management to ensure liquidity and meet obligations, supported by cash reserves for contingency planning. Though risks are inherent to any business, our commitment to quality and innovation, distinguish us in the marketplace.

Human Resources and Industrial Relations

The Company firmly believes that our employees are our key competitive advantage. The Companys employees contribute a wealth of multi-sectoral experience, technological expertise and domain knowledge. The HR culture is characterized by its commitment to redefining traditional standards to improve competitiveness. The company regularly makes decisions that align with employees professional and personal goals, striving to achieve an ideal work-life balance. The total employee strength of the Company as on 31^st March, 2024 stood at 297.

The Companys industrial relations continued to be harmonious during the year under review.

Disclosure on Accounting Treatment

In the preparation of financial statements for F.Y. 2023-24, there is no treatment of any transaction different the Accounting Standards notified by the Government of India under Section 133 of the Companies Act, 2013 read with Rule 7 of the

Companies (Accounts) Rules, 2014; guidelines issued by the Securities and Exchange Board of India and other accounting principles generally accepted in India.

Key Financial Ratios

Sr. No	Particulars		F.Y. 2023-24	F.Y. 2022-23	Change (%)
1	Debtors Turnover	Times	4.29	4.63	-7.45%
2	Inventory Turnover	Times	2.34	2.01	16.20%
3	Interest Coverage Ratio	Times	708.25	495.81	42.85%
4	Current Ratio	Times	12.64	9.96	26.91%
5	Debt Equity Ratio	Times	The Company is debt free. Hence, this is Not applicable.
6	Operating Profit Margin	%	14.28%	13.43%	6.30%
7	Net Profit Margin	%	16.26%	12.38%	31.30%
8	Return on Net Worth	%	11.95%	9.53%	25.41%

Detailed explanation of ratios: i. Interest Coverage Ratio

The Finance Cost is almost same as compared to the previous F.Y. The cash profit of the Company has gone up. So, it is showing improvement in coverage ratio.

ii. Current Ratio

The Ratio has increased from 9.96 as on March 31, 2023 to 12.64 as on March 31, 2024 mainly on account of increase in Loans given and Trade receivables.

iii. Net Profit Margin

The Ratio has increased from 12.38% during the year ended March 31, 2023 to 16.26% during the year ended March 31, 2024 mainly on account of increase in the Other Income.

iv. Return on Net Worth

The Ratio has increased from 9.53% during the year ended March 31, 2023 to 11.95% during the year ended March 31, 2024 mainly on account of increase in Loans given and Trade receivables.

Cautionary Statement

The content provided for Management Discussion and Analysis Report may vary with the anticipation made in the discussion statements. It describes the Companys objectives, projections and estimates progressive within the meaning of applicable security laws and regulations. Actual results may vary from those expressed or implied, depending upon economic conditions, Government Policies and other incidental factors. Taxation laws, Economic Development, Cost of Raw Materials, Interest and Power Cost are among the few extraneous variables that influence the Companys operations.