Marinetrans India Ltd Management Discussions

RESULTS OF OPERATIONS

Overview

The following discussion of our financial condition and results of operations should be read in conjunction with our restated financial statements for the period ended May 31, 2023 and years ended March 31, 2023, March 31, 2022, 2021 and 2020 prepared in accordance with the Companies Act, 1956 and Companies Act, 2013 to the extent applicable and Ind AS and restated in accordance with the SEBI (ICDR) Regulations, including the schedules, annexure and notes thereto and the reports thereon, included in "Financial Information" beginning on page Error! Bookmark not defined. of this Prospectus

This discussion contains forward-looking statements and reflects our current views with respect to future events and financial performance. Actual results may differ materially from those anticipated in these forward-looking statements as a result of certain factors such as those set forth in "Risk Factors" and "Forward-Looking Statements" beginning on pages 2land 13respectively, of this Prospectus

Our Financial Year ends on March 31 of each year. Accordingly, all references to a particular Financial Year are to the 12 months ended March 31 of that year.

Business Overview

‘Marinetrans, the name aptly suggests, the business of specializing in sea freight forwarding. Our Company incorporated on June 24, 2004, was founded by Mr. Tiraj Kumar Babu Kotian with a clear vision of engaging in the trade and business of sea-freight. In the subsequent calendar year, our Company promoter, extended this vision by incorporating and investing in ‘Safewater Lines India Private Limited to expand our presence in sea-freight forwarding. However, after fifteen years, our Company board passed a resolution approving for a demerger scheme on April 10, 2019, separating our Company, and ‘Safewater Lines India Private Limited. The demerger aimed to enable us to provide specialized freight services to our North American customers through ‘Safewater Lines India Private Limited, while allowing our Company to focus on other geographical regions outside of North America.

We offer our customers a comprehensive range of transport management and freight-related services. Our services encompass Freight Forwarding, including both sea freight and air freight. Additionally, we have established partnerships with various intermediaries to provide ancillary services such as Transportation, Multimodal Transportation, Project cargo handling, Third Party Logistics, Packaging, loading/unloading, and unpacking of items. These additional services enable us to provide end-to-end solutions and other value-added services that cater to our customers diverse needs.

We understand that each customer has unique shipment requirements, and we prioritize building personal relationships with them to better understand their individual needs. To meet these needs, our Company has proactively outsourced vendors and established partnerships, allowing us to offer a wide range of services at competitive prices. This asset- light business model grants us the flexibility to develop tailored logistic solutions across diverse industries while ensuring scalability of services.

Our primary objective is to ensure the safe transportation and delivery of goods from start to finish. We achieve this by leveraging our expertise to identify and recommend the optimal solution for each clients specific business environment. Our dedicated team of skilled shipping and customs specialists works diligently to provide clients with customized solutions at affordable rates. Strengthening customer relationships and consistently delivering quality products, services, and solutions are at the core of our mission.

Significant Developments subsequent to the last audited period

In the opinion of the Board of Directors of our Company, since the date of the last audited period i.e., March 31, 2023, as disclosed in this Prospectus, there are no circumstances that materially or adversely affect or are likely to affect the trading or profitability of our Company or the value of its assets or its ability to pay its material liabilities within the next twelve months except as follows:

1. The Board of Directors have decided to get their equity shares listed on Emerge Platform of National Stock Exchange of India Limited and pursuant to Section 62(1)(c) of the Companies Act 2013, by a resolution passed at its meeting held on August 19, 2022, proposed the Issue, subject to the approval of the shareholders and such other authorities as may be necessary.

2. The shareholders of the Company have, pursuant to Section 62(1)(c) of the Companies Act 2013, by a special resolution passed in the Annual General Meeting held on August 29, 2022, authorized the Initial Public Issue.

3. The shareholders of the Company have, pursuant to Section 61 of the Companies Act 2013, by a resolution passed in the Annual General Meeting held on August 29, 2022, authorized to increase the Authorized Capital from existing 12.00 crores to 25.00 crores.

Factors Affecting our Results of Operations:

1. General economic and business conditions in the markets in which we operate and in the local, regional, national, and international economies;

2. Failure to successfully upgrade our product portfolio, from time to time;

3. Any change in government policies resulting in increases in taxes payable by us;

4. Our ability to retain our key managements persons and other employees;

5. Changes in laws and regulations that apply to the industries in which we operate.

6. Our failure to keep pace with rapid changes in technology;

7. Our ability to grow our business;

8. Our ability to make interest and principal payments on our existing debt obligations and satisfy the other covenants contained in our existing debt agreements;

9. General economic, political, and other risks that are out of our control;

10. Inflation, deflation, unanticipated turbulence in interest rates, equity prices or other rates or prices;

11. Companys ability to successfully implement its growth strategy and expansion plans;

12. Failure to comply with regulations prescribed by authorities of the jurisdictions in which we operate;

13. Inability to successfully obtain registrations in a timely manner or at all;

14. Occurrence of Environmental Problems & Uninsured Losses;

15. Conflicts of interest with affiliated companies, the promoter group, group Companies and other related parties;

16. Any adverse outcome in the legal proceedings in which we are involved; and

17. Concentration of ownership among our Promoter.

18. The performance of the financial markets in India and globally.

SIGNIFICANT ACCOUNTING POLICIES:

For Significant accounting policies please refer "Significant Accounting Policies to the Restated Financial Statements", under Section titled "Financial Information" beginning on page Error! Bookmark not defined. of the Prospectus.

SUMMARY OF THE RESULTS OF OPERATION:

The following table sets forth select financial data from restated profit and loss accounts for period ended May 31,2023 and financial year ended on March 31, 2023, March 31, 2022, March 31, 2021 and March 31, 2020 and the components of which are also expressed as a percentage of total income for such periods.

(Rs. in Lakhs)

Particulars	For the period ended May 31,		For the year ended March 31,
	2023	% of Total Revenue	2023	% of Total Revenue	2022	% of Total Revenue	2021	% of Total Revenue
Revenue from operations (net)	1,383.85	99.96%	15,027.09	99.94%	20,321.22	99.97%	9,582.07	99.68%
Other income	0.53	0.04%	9.75	0.06%	6.01	0.03%	31.06	0.32%
Total Income	1,384.38	100%	15,036.84	100%	20,327.23	100%	9,613.13	100%
Expenses
Direct expenses	1,278.90	92.38%	14,335.07	95.33%	19,692.31	96.88%	9,184.44	95.54%
Employee benefit expenses	51.96	3.75%	253.18	1.68%	231.38	1.14%	193.75	2.02%
Other expenses	19.85	1.43%	180.36	1.20%	110.23	0.54%	77.09	0.8%
Finance expenses	0.86	0.062%	55.32	0.37%	40.08	0.20%	44.25	0.46%
Depreciation	14.77	1.067%	4.85	0.03%	3.32	0.02%	3.92	0.04%
Loss on sale of investment	-	-	-	-	-	-	-	-
Preliminary expenses	-	-	-	-	-	-	-	-
Total expenses	1,366.34	98.70%	14,828.77	98.62%	20,077.32	98.77%	9,503.43	98.86%
Profit before tax	18.04	1.30%	208.07	1.38%	249.91	1.23%	109.68	1.14%
Tax expense
-- Current tax	4.09	0.30%	54.35	0.36%	63.96	0.31%	28.78	0.3%
-- Deferred tax	0.04	0.00%	0.59	0.00%	0.43	0%	0.66	0.01%
-- Earlier year tax	-	0.00%	0.30	0.00%	-	-	1.01	0.01%
Profit after tax before non-controlling interest	13.91	1.01%	152.83	1.02%	185.52	0.91%	79.23	0.82%
--Transfer to non-controlling interest	-	-	-	-	(0.72)	0%	(0.55)	(0.01%)
Profit after tax and non-controlling interest	13.91	1.01%	152.83	1.02%	186.24	0.92%	79.78	0.83%

MAIN COMPONENTS OF PROFIT AND LOSS ACCOUNT

Income

Our Total Income comprises of Revenue from core business operations and Other Income.

Revenue from operations

The Revenue from operations consist of revenue from Freight Income. Our revenue from operations as a percentage of total revenue was 99.96%, 99.94%, 99.97% and 99.68% for period ended 2M FY24, FY23, FY22 and FY21 respectively.

Other Income

Other Income comprises of Interest Income from Banks, Interest on Income Tax Refund, Dividend Income and Other Indirect Income. Other Income as a percentage of Total Revenue was 0.04%, 0.06%, 0.03% and 0.32% for period ended 2M FY24, FY23, FY22 and FY21 respectively. Interest Income from Banks, Interest on Income Tax Refund and Other Indirect Income have been the major contributors to the Other Income over the years.

Expenditure

Our total expenditure primarily consists of Direct Expenses, Employee Benefit expenses, other expenses, Finance Expenses and Depreciation which is 98.70%, 98.62%, 98.77% and 98.86% of total revenue for period ended 2M FY24, FY23, FY22 and FY21 respectively.

Direct Expenses:

Direct Expenses is represented by Freight paid and brokerage. Direct Expenses form a major part of the Total Expenditure and over the years the Direct Expenses have reduced from 95.54% in FY21 to 92.38% till period ended 2M FY24.

Employee Benefit Expenses:

Employee Benefit expenses include Salaries, Bonus & Allowances, Directors Remuneration, Gratuity, Contribution to Provident Fund and Other Funds, Staff Mediclaim Expenses and Staff Welfare Expenses. Employee Benefit Expenses as a percentage of Total Revenue was 3.75%, 1.68%, 1.14%, and 2.02% for period ended 2M FY24, FY23, FY22 and FY21 respectively.

Other Expenses:

Other Expenses includes Power and Fuel, rent including Lease Rentals, Repairs and Maintenance, Communication Expenses, Traveling and Conveyance, Printing and Stationery, Business Promotion, Legal and Professional, Payment to Auditors, Discount Allowed, Net Loss on Foreign Currency Transactions and Translation, Miscellaneous Expenses, Office Expenses. Other Expenses has increased slightly over the years from 0.8% in FY21 to 1.43% till period ended 2M FY24.

Depreciation & Amortization:

Depreciation & Amortization includes Depreciation on Tangible assets which have increased from 0.04% in FY21 to 1.067% till period ended 2M FY24.

PERIOD ENDED TILL MAY 31, 2023

The total revenue was Rs1,384.38 lakh for period ended May 31, 2023.

Revenue from Operations

Revenue from operations contributed Rs1,383.85 for period ended May 31, 2023 or 100.00% of total revenue for this period. Other Income

Other Income contributed Rs0.53 lakh for period ended May 31, 2023 or 0.04% of total revenue for this period.

Total Expenses

Total Expenses stood at Rs1,366.34 lakh or 98.70% of Total Income for period ended May 31, 2023.

Employee Benefit Expense

Employee Benefit Expense contributed to Rs51.96 lakh or 3.75% of Total Revenue for period ended May 31, 2023.

Other Expenses

Other Expenses contributed Rs19.85 lakh or 1.43% of Total Revenue for period ended May 31, 2023.

Depreciation & Amortization

Depreciation & Amortization contributed Rs14.77 lakh or 1.067% of Total Revenue for period ended May 31, 2023.

Tax Expenses

Tax Expense contributed Rs4.13 lakh or 0.30% of Total Revenue for period ended May 31, 2023.

Profit after Tax

Profit after Tax contributed Rs13.92 lakh or 1.01% of Total Revenue for period ended May 31, 2023.

FINANCIAL YEAR 2022-23 COMPARED WITH 2021-22

The Total Income for FY2022-23 has decreased by 26.03% from Rs.20,327.23 lakhs for FY 2021-22 to Rs.15,036.84 lakhs for FY 2022-23.

Revenue from Operations

Revenue from operations has decreased by 26.05% from Rs.20,321.22 lakhs for FY 2021-22 to Rs.15,027.09 lakhs for FY 2022-23. The logistics and supply chain industry experienced significant disruptions due to COVID-19 in 2020-21, leading to record-high container freight rates. FY 2021-22 saw a substantial increase in rates, boosting industry revenues. However, in FY23, with volumes stabilizing and freight charges returning to normal, the industry and thus the company experienced a notable decrease in revenue from operations compared to the previous year.

Other Income

Other Income increased from Rs.6.01 lakhs for FY 2021-22 to Rs.9.75 lakhs for FY 2022-23.

Direct Expenses

Direct Expenses decreased by 27.20% from Rs.19,692.31 lakhs for FY 2021-22 to Rs.14,335.07 lakhs for FY 2022-23. The significant decrease in direct expenses can be attributed to the logistics industry returning to normalcy after the disruptions caused by COVID-19.

Employee Benefit Expenses

Employee Benefit Expense has been increased by 9.42% from Rs.231.38 lakhs for FY 2021-22 to Rs.253.18 lakhs for FY 2022-23 mainly due to increase in Salaries, Bonus and Allowances.

Other Expenses

Other Expenses has been increased by 63.62% from Rs.110.23 lakhs for FY 2021-22 to Rs.180.36 lakhs for FY 2022-23 primarily due to gradual increase in the expenses, especially the legal and professional fees incurred during the year.

Depreciation & Amortization

Depreciation & Amortization expense has decreased from Rs.3.32 lakhs to for FY 2021-22 to Rs.4.85 lakhs for FY 2022-23.

Profit before tax

Profit before tax has decreased by 16.74% from Rs.249.91 lakhs for FY 2021-22 to Rs.208.07 lakhs for FY 2022-23. The decrease in Profit before Tax was due to increase in employee benefit expenses and other expenses as compared to the increase in the revenues during FY22.

Tax Expense

Tax Expense has decreased to Rs.55.24 lakhs from Rs.64.39 lakhs for FY 2021-22 to FY 2022-23. The decrease in tax expense incurred was primarily due to lower profit before tax for FY23 as compared to FY22.

Profit after tax

Profit after tax has decreased by 17.94% from Rs.186.24 lakhs for FY 2021-22 to Rs.152.83 lakhs for FY 2022-23. The resultant effect was due to lower increase in revenues as compared to the expenses incurred during the year.

Other key ratios:

Particulars	For the Financial Years ended March 31,
	2023	2022
Return on Net worth %	10.53%	12.83%
Current Ratio	2.50	2.63

Return on Net worth

This is defined as Net profit after tax by Net worth, based on the Restated consolidated summary statements.

Current Ratio

This is defined as total current assets by total current liabilities, based on the Restated Consolidated Summary Statements.

FINANCIAL YEAR 2021-22 COMPARED WITH 2020-21

The Total Income for FY2021-22 has increased by 111.45% from Rs.9,613.13 lakhs for FY 2020-21 to Rs.20,327.23 lakhs for FY 2021-22.

Revenue from Operations

Revenue from operations has increased by 112.08% from Rs.9,582.07 lakhs for FY 2020-21 to Rs.20,321.22 lakhs for FY 2021-22. The Increase was mainly due to revival of business post-covid lockdown.

Other Income

Other Income decreased from Rs.31.06 lakhs for FY 2020-21 to Rs.6.01 lakhs for FY 2021-22.

Direct Expenses

Direct Expenses increased by 114.41% from Rs.9,184.44 lakhs for FY 2020-21 to Rs.19,692.31 lakhs for FY 2021-22. The substantial increase in the operational expenses was due to resumption of the business activity post-covid lockdown.

Employee Benefit Expenses

Employee Benefit Expense has been increased by 19.42% from Rs. 193.75 lakhs for FY 2020-21 to Rs.231.38 lakhs for FY 2021-22 mainly due to increase in Salaries, Bonus and Allowances.

Other Expenses

Other Expenses has been increased by 42.99% from Rs.77.09 lakhs for FY 2020-21 to Rs.110.23 lakhs for FY 2021-22 primarily due to gradual increase in the expenses, especially the Net loss on foreign currency translations and transactions.

Depreciation & Amortization

Depreciation & Amortization expense has decreased from Rs.3.92 lakhs to for FY 2020-21 to Rs.3.32 lakhs for FY 2021-22.

Profit before tax

Profit before tax has increased by 127.85% from Rs.109.68 lakhs for FY 2020-21 to Rs.249.91 lakhs for FY 2021-22. The substantial increase in Profit before Tax was due to lower increase in employee benefit expenses and other expenses as compared to the increase in the revenues during FY22.

Tax Expense

Tax Expense has increased to Rs.64.39 lakhs from Rs.30.45 lakhs for FY 2020-21 to FY 2021-22. The increase in tax expense incurred was primarily due to higher profit before tax for FY22 as compared to FY21.

Profit after tax

Profit after tax has increase by 133.44% from Rs.79.78 lakhs for FY 2020-21 to Rs.186.24 lakhs for FY 2021-22. The resultant effect was due to higher increase in revenues as compared to the expenses incurred during the year.

Other key ratios:

Particulars	For the Financial Years ended March 31,
	2022	2021
Return on Net worth %	12.83%	6.31%
Current Ratio	2.63	2.27

Return on Net worth

This is defined as Net profit after tax by Net worth, based on the Restated consolidated summary statements.

Current Ratio

This is defined as total current assets by total current liabilities, based on the Restated Consolidated Summary Statements.

FINANCIAL YEAR 2020-21 COMPARED WITH 2019-20

The total Income has decreased from Rs.12,246.52 lakhs for FY 2019-2020 to Rs.9,613.13 lakhs for FY 2020-21, resulting in a decrease of 21.50% YoY.

Revenue from operations

Revenue from operations has decreased by 21.58% fromRs. 12,218.52 lakhs for FY 2019-2020 to Rs.9,582.07 lakhs for FY 2020-21. Decrease in the revenue from operations was primarily due to decrease in business activity during the year due to covid-19.

Other Income

Other Income has marginally increased from Rs.28.00 lakhs for FY 2019-20 to Rs.31.06 lakhs for FY 2020-21.

Direct Expenses

Direct Expenses has decreased by 22.01% from Rs.11,776.61 lakhs for FY 2019-20 to Rs.9,184.44 lakhs for FY 2020-21 primarily due to decreased business activity during FY21 due to covid pandemic.

Employee Benefit Expense

Employee Benefit Expense has decreased by 18.18% from Rs.236.81 lakhs for FY 2019-20 to Rs.193.75 lakhs for FY 2020- 21 primarily due to decrease in salaries, wages & bonuses.

Other Expenses

Other Expenses has decreased substantially by 42.98% during the year from Rs.135.20 lakhs for FY 2019-20 to Rs.77.09 lakhs for FY 2020-21 primarily due to gradual decrease in the business expense during FY21 due to impact of COVID-19 on the business activity.

Depreciation & Amortization

Depreciation & Amortization has been substantially decreased from Rs.13.08 lakhs for FY 2019-20 to Rs.3.92 lakhs for FY 2020-21.

Profit before Tax

Profit before tax has increased by 259.84% from Rs.30.48 lakhs for FY 2019-20 to Rs. 109.68 lakhs for FY 2020-21.

Tax Expense

Tax expense has increased from Rs.10.65 lakhs for FY 2019-20 to Rs.30.45 lakhs for FY 2020-21 primarily due to increase the Profit before Tax for FY21.

Profit after Tax

Profit after tax has increased by 231.45% from Rs.24.07 lakhs for FY 2019-20 to Rs.79.78 lakhs for FY 2020-21.

Particulars	For the Financial Years ended March 31,
	2021	2020
Return on Net worth %	6.31%	2.03%
Current Ratio	2.27	1.81

Return on Net worth

This is defined as Net profit after tax by Net worth, based on the Restated consolidated summary statements.

Current Ratio

This is defined as total current assets by total current liabilities, based on the Restated Consolidated Summary Statements.

CASH FLOW

The table below summaries our cash flows from our Restated Consolidated Financial Information for financial years March 31, 2023, March 31, 2022, March 31, 2021, ended March 31, and 2020:

ii

(Rs. in Lacs)

Particulars	For period ending May 31, 2023	For the Financial Years ended March 31,
		2023	2022	2021
Net cash (used in)/ Generated from operating activities	(178.39)	(80.02)	(108.76)	188.80
Net cash (used in)/ Generated from investing activities	8.45	(18.03)	(2.48)	21.75
Net cash (used in)/ Generated from finance activities	25.86	249.91	0.29	(64.22)

Cash flow from operating activities:

For the year ended 31st May 2023

The Net cash (used in)/ Generated from operating activities is (Rs. 178.25) lakhs which consisted of profit before tax of Rs.208.07 lakhs as adjusted primarily for:

i. Depreciation and Amortization of non- current Assets of Rs. 0.86 lakhs.

ii. Interest cost of Rs.19.85 lakhs for the financial year ended March 31, 2023.

iii. Interest Income Rs. 0.53 lakhs.

iv. Working capital changes primarily due to increase in Trade Receivables of Rs.87.09 lakhs, decrease in Trade Payables of Rs.55.13 lakhs, increase in Other Current Assets of Rs.64.99 lakhs and decrease in Other Current Liability of Rs.29.97 lakhs.

For the year ended 31st March 2023

The Net cash (used in)/ Generated from operating activities is (Rs. 80.02) lakhs which consisted of profit before tax of Rs.208.07 lakhs as adjusted primarily for:

v. Depreciation and Amortization of non- current Assets of Rs. 4.85 lakhs.

vi. Interest cost of Rs.55.32 lakhs for the financial year ended March 31, 2023.

vii. Interest Income Rs. (9.70) lakhs.

viii. Working capital changes primarily due to decrease in Trade Receivables of Rs.519.47 lakhs, decrease in loans & advances of Rs.8.59 lakhs, decrease in Trade Payables of Rs.128.00 lakhs, increase in Other Current Assets of Rs.660.45 lakhs and decrease in Other Current Liability of Rs.8.30 lakhs.

For the year ended 31st March 2022

The Net cash (used in)/ Generated from operating activities is (Rs.108.76) lakhs which consisted of profit before tax of Rs.249.91 lakhs as adjusted primarily for:

i. Depreciation & Amortization of non-current Assets of Rs.3.32 lakhs.

ii. Interest paid for the year of Rs.40.08 lakhs and Interest Income of (Rs.5.89) lakhs.

iii. Working Capital changes primarily due to increase in Trade Receivables of Rs. 36.15 lakhs, increase in Loans & Advances Rs. 6.62 lakhs, decrease in other current assets of Rs.61.84 lakhs, and decrease in trade payables of Rs.121.12 lakhs and decrease in other Current Liabilities of Rs.33.75 lakhs.

For the year ended 31st March 2021

The Net cash (used in)/ Generated from operating activities is Rs.188.80 lakhs which consisted of profit before tax of Rs.109.68 lakhs as adjusted:

i. Depreciation and Amortization of non-current assets of Rs.3.92 lakhs.

ii. Interest paid for the year of Rs.44.25 lakhs and interest income of (Rs.2.70) lakhs.

iii. Working capital changes primarily due to decrease in trade receivables of Rs. 177.42 lakhs, increase in Loans & Advances Rs. 3.79 lakhs, decrease in other current assets of Rs. 163.56 lakhs, decrease in trade payables of Rs.275.54 lakhs, and decrease in other current liabilities Rs.76.48 lakhs.

For the year ended 31st March 2020

The Net cash (used in)/ Generated from operating activities is Rs.24.61 lakhs which consisted of profit before tax of Rs.30.48 lakhs as adjusted primarily for:

i. Depreciation and amortization of non-current assets of Rs. 13.08 lakhs.

ii. Interest paid for the year of Rs.54.34 lakhs and interest income of Rs. (4.52) lakhs.

iii. Dividend Income Rs. (0.15) lakhs and Loss on sale of shares Rs. (110.10) lakhs and loss on sale of fixed assets Rs.1.75 lakhs.

iv. Working capital changes primarily due to decrease in trade receivables of Rs. 730.78 lakhs, increase in Loans & Advances Rs. 2.02 lakhs, decrease in other current assets of Rs.27.10 lakhs, decrease in trade payables of Rs. 831.55 lakhs, and increase in other current financial liabilities Rs.41.13 lakhs.

Cash flow from Investing Activities:

For the year ended May 31, 2023

The Net cash (used in)/ Generated from Investing Activities is Rs.8.45 lakhs primarily due to purchase of Fixed Assets of Rs.0.12 lakhs and investment in fixed deposit Rs.8.05 lakhs and Interest & other income of Rs.0.53 lakhs.

For the year ended March 31, 2023

The Net cash (used in)/ Generated from Investing Activities is (Rs.18.03) lakhs primarily due to purchase of Fixed Assets of Rs.22.16 lakhs and investment in fixed deposit Rs.4.61 lakhs and Interest & other income of Rs.9.70 lakhs.

For the year ended March 31, 2022

The Net cash (used in)/ Generated from Investing Activities is (Rs.2.48) lakhs primarily due to purchase of fixed assets of (Rs.2.91) lakhs, investment in fixed deposit (Rs.5.46) lakhs and Interest & other income of Rs.5.89 lakhs.

For the year ended March 31, 2021

The Net cash (used in)/ generated from investing activities is Rs.21.75 lakhs primarily due to purchase of fixed assets (Rs.0.84) lakhs, investment in fixed deposits Rs.19.89 lakhs and interest income Rs.2.70 lakhs.

For the year ended March 31, 2020

The Net cash (used in)/ generated from investing activities is Rs.51.12 lakhs primarily due to sale of investments of Rs.13.00 lakhs, maturity of fixed deposits Rs.34.03 lakhs, purchase of fixed assets Rs. (0.58) lakhs, dividend income of Rs. 0.15 lakhs and interest income of Rs. 4.52 lakhs.

Cash flow from Financing Activities:

For the year ended May 31, 2023

The Net cash (used in)/ generated from financing activities is Rs.25.86 lakhs primarily due to long term borrowings of (Rs.0.62) lakhs, short term borrowings of Rs.46.32 lakhs and finance costs of (Rs. 19.85) lakhs.

For the year ended March 31, 2023

The Net cash (used in)/ generated from financing activities is Rs.249.91 lakhs primarily due to long term borrowings of Rs.13.50 lakhs, short term borrowings of Rs.291.73 lakhs and interest income of (Rs. 55.32) lakhs.

For the year ended March 31, 2022

The Net cash (used in)/ generated from financing activities is Rs.0.29 lakhs primarily due to long term borrowings of (Rs.28.69) lakhs, short term borrowings of Rs.69.06 lakhs and interest income of (Rs.40.08) lakhs.

For the year ended March 31, 2021

The Net cash (used in)/ generated from financing activities is (Rs.82.20) lakhs primarily due to proceeds of long-term borrowings of Rs.17.03 lakhs, short term borrowings of (Rs.54.98) lakhs and interest cost of (Rs.44.25) lakhs

For the year ended March 31, 2020

The Net cash (used in)/ generated from financing activities is (Rs. 126.44) lakhs primarily due to proceeds in the borrowings of (Rs.82.05) lakhs, short term borrowings of Rs.9.95 lakhs and interest cost of (Rs.54.34) lakhs

OTHER FACTORS

An analysis of reasons for the changes in significant items of income and expenditure is given hereunder:

1. Unusual or infrequent events or transactions

There has not been any unusual trend on account of our business activity. Except as disclosed in this Prospectus, there are no unusual or infrequent events or transactions in our Company.

2. Significant economic changes that materially affected or are likely to affect income from continuing operations.

There are no significant economic changes that may materially affect or likely to affect income from continuing operations.

3. Known trends or uncertainties that have had or are expected to have a material adverse impact on sales, revenue, or income from continuing operations.

Apart from the risks as disclosed under Section "Risk Factors" beginning on page 21 of the Prospectus, in our opinion there are no other known trends or uncertainties that have had or are expected to have a material adverse impact on revenue or income from continuing operations.

4. Future changes in relationship between costs and revenues

Other than as described in the sections "Risk Factors", "Our Business" and "Managements Discussion and Analysis of Financial Condition and Results of Operations" on pages 21, 107and 174 respectively, to our knowledge, no future relationship between expenditure and income is expected to have a material adverse impact on our operations and finances.

5. Total turnover of each major industry segment in which our Company operates

The Company is in the business of 3Pl logistic service provider including multi-model transportation, sea, air, and surface transportation of goods along with warehousing and custom clearance services. Relevant industry data, as available, has been included in the section titled "Industry Overview" beginning on page 80of this Prospectus

6. Status of any publicly announced New Products or Business Segment

Except as disclosed in the Section "Our Business", our Company has not announced any new product or service.

7. Seasonality of business

Our Companys business is not seasonal in nature. However, some of our customers have seasonality in their business as they experience more sales during festival or peak season like automobile industry. So, as we work as a logistic service provider to them hence our revenue may also be affected due to seasonality in their business.

8. Dependence on single or few customers or suppliers

The revenue of our company is dependent on a few limited numbers of customers.

9. Competitive conditions

Competitive conditions are as described under the Sections "Industry Overview" and "Our Business" beginning on pages 80and 107respectively of this Prospectus