Does folders names means sub-categories?

If you have a structure like the snapshot I included, how the script will behave:

- will it create a main directory like :

Hydroponics

than

hydroponics - catalogues (as sub categories)
hydroponics - magazines (as a second sub-category)
hydroponics - etc (etc)

listing all files insides each folder = sub-directories??

Just to be on the safe side, the way I read it, the script would use the names of the folders as labels for the sub-categories! It is just that I want to be sure that I will not have to create manually any sub-directories!

Thanks

Roger Pilon
The Planet Fixer Digest