Marinetrans India Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENTS

Global Economic Overview

The global economy stands at a critical juncture. After a prolonged and unprecedented period of shocks, the economy appears to have stabilised through much of 2024, with steady yet underwhelming growth rates. Global GDP is projected to grow by 3.3% in 2024 and slow to 2.8% in 2025. However, the global economy demonstrated resilience and withstood a series of mutually reinforcing shocks, despite substantial interest rate hikes by central banks aimed at restoring price stability. Growth remained subdued amid lingering uncertainty, constrained by weak investments, sluggish productivity growth and high debt levels.

However, the global landscape changed as governments around the world reordered policy priorities and uncertainties climbed. Risks stemmed from geopolitical conflicts, rising trade tensions and elevated borrowing costs in many parts of the world. Compounding these challenges, the war in Ukraine drove energy prices even higher, placing additional strain on economies with significant energy demands.

*Source:https://www.imf.org/en/Publications/WEO/Issues/2025/04/22/world-economic- outlook-april-2025

Indian Economic Overview

Indias growth story is indeed a powerful narrative of ambition, innovation, and unparalleled potential. As perthe second advance estimates by the NationalStatistics Office (NSO), the Ministry of Statistics and Programme Implementation (MOSPI), Indias real GDP is estimated to grow by 6.5% in FY 2024-25, as compared to real GDP growth rate of 9.2% in FY 2023-24, which was estimated to be the highest in the previous 12 years (barring FY 2021-22). Fleadline inflation was estimated at 4.1% during the year under reviewvis-a-vis 5.4% in the previousyear, on account of high-frequency macro- economic indicators, and indicating a promising outlook in the coming years.

Growth was mostly led by a significant uptick in government spending and prompted by a spike in exports, higher capex pick-up, and huge growth in consumption expenditure. Indias long-term growth story is believed to be intact.

Despite global challenges, India has emerged as an economic powerhouse and is moving up the global value chain and continues to be the worlds 5th largest economy in the worlds GDP rankings list, owing to its strong economic foundations and on the back of continued economic reforms, thriving domestic demand, careful financial management, high savings rate, and favourable demographic trends.

Future Outlook

Looking ahead, intensifying downside risks dominate future outlook, amid escalating trade tensions and financial market adjustments. The forecast for global growth has been revised markedly down, reflecting a highly unpredictable environment. Expectations are that divergent and swiftly changing policy positions and deteriorating sentiments can lead to even tighter financial conditions. Short and long-term growth prospects are expected to be hindered by a trade war and heightened trade policy uncertainty.

Global growth forecast for the next five years stands at 3.1%, marking its lowest level in decades. Lower inflation and ongoing monetary easing in many economies could provide a modest boost to global economic activity in 2025. Advanced economies are forecast to maintain a steady growth rate of 1.5% in 2024, with a slight uptick to 1.7% in 2025, while developing economies are projected to expand at an average rate of 4% over 2024 and 2025, marking a slight slowdown from 2023.

At this critical juncture, there is a need for countries to work constructively to promote a stable and predictable trade environment and to facilitate international co- operation, while addressing policy gaps and structural imbalances. Global headline inflation is expected to decline at a slightly slower pace. Inflation is expected to fall from 5.9% in 2024 to 4.5% in 2025, with advanced economies reaching their inflation targets sooner than emerging and developing markets.

India is poised to lead the global economic landscape, retaining its position as the fastest- growing major economy. According to the World Banks Global Economic Prospects (GEP) report, Indias economy is projected to expand at a robust 6.7% in both FY 2025- 26 and FY 2026-27, far surpassing global and regional counterparts. With global growth expected to remain at 2.7% in 2025-26

Indias strong performance highlights its resilience and increasing influence in shaping the worlds economic future. A sustained growth reflects the countrys strong economic fundamentals and ability to maintain momentum despite global uncertainties, reinforcing its position as a key player in the global economy.

(Source: World Bank & International Monetary Fund)

Indias Infrastructure segment

Indias infrastructure sector is poised for unparalleled growth, driven by government initiatives and increased investments. A Morgan Stanley report projects that Indias infrastructure investment will increase from 5.3% of GDP in fiscal year 2024 to 6.5% by fiscal year 2029, representing a robust compound annual growth rate (CAGR) of 15.3%. This surge is expected to result in cumulative spending of US$ 1.45 trillion over the next five years, fostering sustained, high productive growth and boosting investment rates.

*https://www.angelone.in/blog/indias-infrastructure-sector-journey-from-independence-to-2024

National Infrastructure Pipeline

Indias infrastructure sector is poised for strong growth, with planned investments worth US$1.4 trillion planned by 2025 under the National Infrastructure Pipeline (NIP). The governments ambitious National Infrastructure Pipeline (NIP) program outlines the injection of massive capital into various sub-sectors, including energy, roads, railways, and urban development. This unprecedented push is expected to spawn associated industries, create jobs, and stimulate the economy. Specific focus areas are the expansion of public digital infrastructure, clean and renewable energy projects, and establishing resilient urban infrastructure. This ambitious undertaking seeks to enhance Indias global competitiveness and improve the quality of life across its vast populace.

PM Gati Shakti - A key milestone in Indias infrastructure development

The PM Gati Shakti National Master Plan (Gati Shakti NMP) has transformed Indias infrastructure landscape with a coordinated, efficient, and integrated approach. Announced by PM Narendra Modi in October 2021, Mission Gati Shakti is a transformative infrastructure initiative with a proposed investment of Rs 100 trillion. It integrates

16 ministries and national schemes like Bharatmala, Sagarmala, UDAN, and various industrial corridors, creating a unified framework for roadways, railways, ports, waterways, and airports. The plan addresses inefficiencies in Indias traditionally compartmentalized infrastructure development approach.

*https://www.india-briefing.com/news/pm-gati-shakti-national-master-plan-achievements-2024-35336.html/

Programmes driving Indias infrastructure improvement

Key infrastructure programs, such as Bharatmala (highways), Sagarmala (ports), UDAN (aviation), and inland waterways, are seamlessly integrated into the Gati Shakti NMP. This coordinated approach enhances last-mile connectivity, facilitates the movement of goods and people, and optimizes the use of resources, enabling India to build a robust and efficient logistics network.

Gati Shakti - A vision for Indias future

PM Gati Shakti is more than just an infrastructure plan?it is a vision for Indias future. By fostering inter-ministerial collaboration, leveraging advanced technologies, and involving the private sector, the initiative is laying the foundation for sustained economic growth and global competitiveness.

As India aims to become a US$5 trillion economy and achieve the Viksit Bharat Vision 2047, PM Gati Shakti will remain a cornerstone of its infrastructure strategy. With its innovative, integrated, and inclusive approach, the scheme is poised to propel India into a new era of development, ensuring that its infrastructure sector becomes a benchmark for the world.

INDUSTRY OVERVIEW

Global Shipping Industry

Shipping is the life blood of the global economy. The international shipping industry is responsible for the carriage of around 90% of world trade. The global shipping industry is a vital component of the global economy, responsible for transporting the majority of world trade by sea. It encompasses various segments like container shipping, dry bulk shipping, and tanker shipping, facilitating the movement of goods and commodities across continents. The industry is a significant driver of international trade and economic growth, with a growing market and increasing capacity, although it faces challenges such as geopolitical risks and climate concerns.

Key Market Trends in Global Container Shipping Industry

• Increase in Digitalization and IoT Integration: Increase in Digitalization and IoT Integration: A revolution is occurring in the global shipping container market trends, in the form of newly available IoT-enabled containers. It will soon bring its own real-time tracking, increased security, and better logistics, and companies will be incorporating smart technology toward managing their container from source to destination.

• Growing Demand for Sustainable Containers: The most important issue in the global shipping container market at the moment is that of sustainability. Green containers made up of recycled materials and using energy-efficient designs are emerging in the market. It is this development, driven by both environmental regulation and consumer demand for a greener practice, that is pushing these innovators at developing sustainable container solutions with smaller carbon footprints forward.

https://www.skyquestt.com/report/shipping-container-market#:~:text=Shipping%20Container%20Market%20 size%20was,period%20(2025%2D2032).

The Future of Shipping

The transition from traditional steam engines to internal combustion engines (ICE) powered by diesel or heavy fuel oil, has marked a turning point, improving efficiency and reducing maintenance costs. However, these fuels also contribute to pollution. With increasing environmental awareness, the industry is actively exploring alternative fuels to ensure progression towards a cleaner future. Liquefied natural gas (LNG) has emerged as a promising alternative due to its low greenhouse gas emissions as compared to traditional fuels. Additionally, hydrogen is an abundant element, holding immense potential as a zero-emission, cleanburning fuel source for future fleets.

Indian Shipping Transport and Logistics Services

Increasing investment and cargo traffic point towards a healthy outlook for the Indian ports sector. Providers of services such as operation and maintenance (O&M), pilotage and harbouring and marine assets such as barges and dredgers are benefiting from these investments. Domestic waterways have found to be a cost-effective and environmentally sustainable mode of freight transportation. The government aims to operationalise 23 waterways by 2030.

Impact of BDI on Marinetrans:

The fluctuations in the BDI have a direct impact on Marinetrans operations, particularly in the bulk shipping segment. When the BDI is high, freight rates for dry bulk commodities tend to increase, which can positively impact Marinetrans profitability. However, when the BDI is low, freight rates decline, potentially affecting the companys earnings.

Government Initiatives in the Logistics and Shipping Industry

• The Indian government has been actively promoting the growth of the logistics and shipping industry through various initiatives. Here are some key government programs:

• Sagarmala Project aims to enhance port infrastructure and connectivity.

• Bharatmala Pariyojana focuses on developing national highways for efficient road transport.

• Dedicated Freight Corridors for creating efficient rail corridors for freight transportation.

• Digital India for promoting e-governance and digitalization in customs and trade procedures.

• Port Modernization for upgrading port infrastructure and facilities to improve efficiency.

• Ease of Doing Business is implementing reforms to streamline business processes and reduce compliance burden.

• Skill India Mission for promoting skill development in the logistics and supply chain sector.

• National Logistics Policy aims to reduce logistics costs and improve efficiency.

• Make in India is encouraging domestic manufacturing and increasing logistics demand.

• Production Linked Incentive schemes for promoting manufacturing and related logistics activities.

• These initiatives aim to create a conducive environment for logistics companies like Marinetrans to operate and grow.

OPPORTUNITIES AND THREATS Opportunities

Here are some emerging opportunities that we can leverage to drive growth and strengthen its market position: -

Expanding

E-commerce Market:

The swift development of Indias online marketplace generates important possibilities for Marinetrans to harness expanding needs for final-stage logistics and warehouse solutions.

Infrastructure

Development:

Enhanced transportation infrastructure?such as modernized highways and upgraded port facilities?can yield lucrative prospects for Marinetrans and similar logistics operators.

Growing Export Market:

Indias expanding export sector can spur higher requirements for logistics infrastructure and services to streamline overseas commerce.

Sustainable

Logistics:

The surge in demand for sustainable warehousing & higher demand for sustainable shipping and warehousing enables Marinetrans to gain a competitive lead.

Digital

Transformation:

Adopting digital platforms increases efficiency, optimizes customer interactions, and

creates further monetization pathways.

Threats

Here are some potential threats that could pose challenges to our growth and operational stability:

Major Threats in shipping industry:

Economic

Downturn:

A slowdown in the Indian economy or global recession could impact demand for logistics services.

Rising Fuel Costs:

Increased fuel prices can negatively impact profitability due to higher transportation costs.

Intense

Competition:

The logistics industry is highly competitive, with numerous players vying for market share.

Regulatory

Changes:

Changes in government regulations, such as those related to trade or taxation, can impact the industry.

Supply Chain Disruptions:

Global events such as geopolitical tensions or natural disasters can disrupt supply chains and affect logistics operations.

Threat Category	Threat	Impact
Geopolitical	Trade Route Disruptions	Border conflicts or sanctions force rerouting, increasing fuel costs and transit times.
Regulatory	Emissions & Environmental Mandates	New IMO carbon rules and ballast-water standards drive up retrofit costs and compliance fines.
Market	Freight Rate Volatility	Oversupply of vessels or downturns in global trade depress charter rates and revenue.
Operational	Port Congestion & Labor Strikes	Terminal backlogs and dockworker actions cause shipment delays and demurrage expenses.
Technological	Cyber Attacks on Ship Systems	Hacking of navigation or cargo-handling systems risks safety incidents and data breaches.
Environmental & Climate	Extreme Weather Events	Hurricanes, heatwaves, and sea-ice variability damage vessels and disrupt schedules.
Financial	Fuel Price Spikes	Sudden jumps in bunker oil prices squeeze operating margins and budgeting accuracy.
Human Capital	Seafarer Shortages & Welfare Issues	Crew shortages and rising welfare demands increase crewing costs and risk noncompliance.

COMPANY OVERVIEW

Marinetrans is a leading provider of comprehensive transport management and freight-related services. Our core business encompasses freight forwarding, including both sea and air freight, transportation, multimodal transportation, and a range of value-added services. We adopt an asset-light business model, partnering with a robust network of third-party logistics providers to deliver efficient and cost-effective solutions.

Headquartered in Navi Mumbai with a branch in Ahmedabad, we operate primarily through major Indian ports, facilitating seamless cargo movement across the globe. Our focus is on building strong customer relationships and delivering tailored end-to-end solutions that meet the specific needs of each client.

Services Offered

Marinetrans provides a comprehensive suite of services to meet the diverse needs of our clients. Were committed to providing you with a platform that helps you navigate the complex world of shipping - from start to finish like:

• Freight Forwarding

Our Company offers a comprehensive range of freight forwarding services, including sea freight and air freight. For sea freight forwarding, we handle all shipping requirements, from door-to-door pickup to managing shipping documents through third-party service providers. Our services are customer-oriented and tailored to individual needs, with flexible pricing based on factors such as shipment size and commodity type. In addition to freight forwarding, through third-party service providers we ensure custom clearance services, offering documentation support and handling import and export clearance at ports.

• Transportation

Transportation services are also part of our portfolio, providing safe and reliable surface transportation for general cargo, heavy and over-dimensional consignments. Our Company handles unloading at the destination site as well. The said activities are undertaken by third-party service providers.

• Multimodal Transportation

As a multimodal transport operator, we integrate different modes of transport, including air, sea, and land, to provide efficient and cost-effective door-to-door movement of goods.

• Other Value-Added Services

Our Company also provides value-added services through third-party service providers such as door-to-door delivery, cargo handling, packing, etch. Door-to-door delivery simplifies logistics management, while cargo services cater to the unique requirements of transporting items for exhibitions

Financial Performance:

Financial Performance Analysis:

Consolidated	Year ended March 31, 2025	Year ended March 31, 2024	% Change
Revenue from operations	10,633.99	15,768.28	48.28%
Earnings before Interest, Tax, Depreciation & Amortisation (EBIDTA)	184.76	185.47	0.38%
Total Expenses	(552.67)	(541.79)	-1.97%
Profit Before Tax	82.83	87.90	6.12%
Net Profit	56.87	49.73	-12.55%

FINANCIAL PERFORMANCE

Balance Sheet Performance

Particulars	As at March 31, 2025,	As at March 31, 2024
ASSETS
Non-Current Assets
Property, Plant and Equipment	16.21	17.97
Financial Assets
(i) Investments	3.50	3.50
(iii) Other Financial Assets (ROU Asset)	21.66	34.24
Deferred Tax Assets (Net)	21.29	17.71
Other Non-Current Assets	28.87	39.65
Current Assets
Financial Assets
(i) Trade Receivables	1,982.38	2,486.26
(ii) Cash and Cash Equivalents	78.83	237.65
(iii) Bank Balances other than (ii) above	-	-
(iii) Loans and advances	1,583.67	1,400.65
(iv) Other financial Assets	1,583.67	1,400.65
Other Current Assets	389.68	303.15
Total Assets	4,126.11	4,540.79
EQUITY AND LIABILITIES
EQUITY
Equity Share Capital	1,272.60	1,272.60
Other Equity	1,322.44	1,273.69
LIABILITIES
Non-Current Liabilities
Financial Liabilities
(i) Borrowings	4.33	6.84
Provisions	18.45	11.23
Other Non-Current Liabilities	7.86	23.45
Current Liabilities
Financial Liabilities
(i) Borrowings	671.56	534.14
(ii) Lease Liability	15.62	12.55
(iii) Trade and Other Payables Due to :
(a) Micro and Small Enterprises	3.63	-
(b) Other than Micro and Small Enterprises	650.56	1,215.27
(iv) Other Current Financial Liabilities	0.45	0.62
Provisions	7.65	1.95
Other Current Liabilities	67.35	51.02
Total Equity and Liabilities	4,126.11	4,540.79

Note: Refer to Standalone Financial Statements in this Integrated Annual Report for detailed schedules and notes

Profit And Loss Statement

Particulars	For the Year ended March 31, 2025	For the Year ended March 31, 2024
Income
Revenue from Operations	15,768.28	10,633.99
Other Income	12.49	12.02
Total Income	15,780.77	10,646.01
Expenses
Direct Expenses	15,041.02	9,896.56
Employee Benefits Expenses	358.81	355.91
Finance Costs	92.81	95.81
Depreciation and Amortisation Expense	17.25	18.14
Other Expenses	182.98	196.76
Total Expenses	15,692.87	10,563.18
Profit Before Tax	87.90	82.83
Income Tax Expense
Current Year	36.45	26.86
Earlier Year	4.96	-
Deferred Tax	(3.24)	(0.90)
Profit for the year	49.74	56.87
Other Comprehensive Income
Items that will not be reclassified to profit or loss in subsequent periods:
- Re-measurement gain/(losses) on defined post-employemnt benefit obligations	(1.31)	(4.70)
- Income Tax effect on above	0.33	1.23
Total other comprehensive income
Total comprehensive income for the year	48.75	53.40
Earnings per equity share for profit for the year attributable to owners of Marinetrans India Limited of face value of ^ 10 each
Basic EPS (in ^)	0.39	0.58
Diluted EPS (in ^)	0.39	0.58

Revenue Performance

Exceptional Growth: Revenue increased by 48.28% from ^10,634 Lakhs to ^15,768 Lakhs, indicating strong business expansion and market penetration. This substantial growth suggests successful business development initiatives and increased operational scale.

Revenue Composition: The companys revenue is primarily driven by operations, with minimal contribution from other income sources, indicating a focused business model.

Profitability Analysis

Margin Compression: Despite revenue growth, net profit declined by 12.54% from f56.87 Lakhs to f49.74 Lakhs, highlighting operational efficiency challenges.

Important Ratios:

• Net Profit Margin: Declined from 0.53% to 0.32%, indicating margin pressure

• Return on Assets (ROA): Slightly decreased from 1.25% to 1.21%

• Return on Equity (ROE): Reduced from 2.23% to 1.92%

Cost Structure: Direct expenses constitute 95.8% of total expenses, suggesting a high-cost business model with limited operational leverage.

Financial Position & Capital Structure

Debt Management:

• Debt-to-Equity ratio improved from 0.78 to 0.59, indicating better capital structure management

• Total debt reduced by 23.2% from f1,995 Lakhs to f1,531 Lakhs

• Interest Coverage Ratio of 1.95x suggests adequate ability to service debt obligations

• Equity Position:

• Total equity increased marginally from f2,546 Lakhs to f2,595 Lakhs

• Equity composition remains stable with consistent share capital

Liquidity & Working Capital

Strong Liquidity:

• Current Ratio of 2.69 indicates excellent short-term liquidity

• Working Capital of f2,534 Lakhs provides substantial operational flexibility

• Cash position declined from f238 Lakhs to f79 Lakhs, requiring monitoring

• Asset Composition:

• Trade Receivables dominate at 48% of total assets (f1,982 Lakhs), indicating significant credit sales

• Low fixed asset base (0.4% of assets) suggests asset-light business model

Operational Efficiency

Mixed Efficiency Metrics:

• Asset Turnover improved significantly from 2.34x to 3.82x, showing better asset utilization

• However, declining profit margins offset efficiency gains

• High receivables suggest potential collection challenge

• With 48.28% revenue growth, Marinetrans significantly outperformed typical logistics sector growth rates, capitalizing on market opportunities and scaling operations rapidly.

• Lower leverage and improved interest cover bolster financial stability.

• Revenue surge positions the company for further strategic investments and market expansion.

Risk Management

Risk Management is a very important part of the Companys business and has in place an integrated risk management system. It proactively identifies monitors and takes precautionary and mitigation measures in respect of various risks that threaten its operations and resources.

A robust Risk Management Policy, applying to all functions of the Company, safeguards sustained business growth and robust corporate governance. This policy reinforces a process for identifying and managing key risks complying with the provisions of the Companies Act, 2013. The Board of Directors Risk Committee facilitates in developing, implementing and monitoring the risk management strategy of the Company.

1) Operational Risk

Risks associated with the operation of vessels, such as accidents, delays and cargo damage, can lead to legal liabilities, reputational damage and financial losses for the Company.

2) Financial Risk

Factors such as credit risks, interest rate fluctuations and the ability to secure financing for fleet expansion or acquisitions can impact the Companys financial performance.

3) Environmental Risk

The shipping industry is under increasing pressure to reduce its environmental impact, and failure to comply with environmental regulations or adopt sustainable practices can lead to fines, legal issues and reputational damage.

4) Geo- Political Risk

Geopolitical uncertainties are challenging issues shaping the global maritime industry. Geo-political risks pose significant challenges to the shipping industry, impacting trade routes, costs and overall operations. Factors such as geo-political tensions and instability, trade disputes and sanctions often lead to disruption in supply chains, and result in rerouting of shipping routes.

Human Capital Management

The Company is dedicated to building an inclusive, growth-focused, and performance-driven workplace. Aligned with the Groups ‘Higher Purpose - Delivering prosperity to humanity - the Company upskills existing employees and integrates new talent to meet evolving business needs and drive continued success.

Diversity & Inclusion

The Company is committed to a diverse, inclusive, and safe work environment rooted in openness and mutual respect. As an equal opportunity employer, the Company ensures fair employment practices and compliance with local laws. With women representing over 37% of the workforce, the Company continues to strengthen its DEI initiatives to promote gender neutrality and diversity across the organization.

Employee Engagement & Recognition

The Company believes that engaged, valued employees are key to long-term growth and success. Employee engagement and recognition are central to the Companys people strategy, supported by initiatives that foster teamwork, belonging, and well- being. Through team-building activities, cultural events, and recognition programs like Employee of the Month and Long Service Awards, the Company is committed to creating a vibrant, inclusive workplace while promoting work-life balance.

Learning & Development

The Company views continuous learning and upskilling as essential to staying competitive in a dynamic market. Learning and development is a strategic focus, with emphasis on both technical and behavioral competencies. The Company offers in-house training, collaborates with external partners, and encourages employees to pursue professional certifications.

Performance Management

At the Company, performance management is a continuous process focused on regular feedback and improvement. Beyond annual appraisals, the Company fosters a culture where employees actively give and receive input to enhance productivity and growth.

Employee Well-Being

Your Company places employee well-being at the core of its people strategy, focusing on physical, mental, and emotional health. Wellness initiatives?including yoga sessions, health screenings, and awareness programs? are conducted year- round, often in collaboration with insurance partners. Additional support includes group life insurance, financial assistance in case of loss, and paid bereavement leave. The Company also supports primary caregivers and promotes policies that enable work-life balance, reflecting a strong, ongoing commitment to employee care.

Health, Safety & Environment

The Company remains committed to providing a safe and healthy environment for its personnel, contractors, customers and visitors on its premises and in areas affected by its operations. It follows a zero-harm philosophy to comply with health and safety legal requirements and achieve an injury-free workplace. It also adheres to the highest standards of health and safety management practices across all operations.

The organised contingency safety precautions and intensive training programmes have the capability to address any unforeseen accidents. It provides continuous training to the entire workforce and has built various checkpoints in the system to monitor the safety processes. It also conducts safety training workshops for its workforce through internal and external experts.

Internal Control Systems and their Adequacy

The Company has established and implemented robust safeguards, internal control mechanisms and risk management processes that are proportionate to the nature of its business, as well as the scale and intricacy of its operations. Suitable internal control policies and procedures have been put in place to offer reasonable assurance regarding the following aspects:

• Effectiveness and efficiency of our operations

• Reliability of financial reporting

• Compliance with applicable laws and regulations

Adherence to these policies and procedures is seamlessly integrated into the management review process. Additionally, we regularly perform comprehensive evaluations to ensure their ongoing relevance and comprehensiveness. Any deviations from the prescribed processes are systematically identified and addressed by identifying their root causes.

The Company consistently evaluates the efficacy of its internal controls across various functions and locations through comprehensive internal audit exercises that employ a blend of contemporary and conventional audit tools. The Audit Committee reviews the internal audit programme to ensure comprehensive coverage of the pertinent areas. Proactive measures are taken to ensure compliance with forthcoming regulations by deploying cross-functional teams.

The Company leverages advanced technologies to minimise errors and lapses, detect significant trends through data analysis and monitor essential compliance requirements. It has established Standard Operating Procedures and policies to provide guidance for the operations of each function. Business heads bear the responsibility of ensuring compliance with these policies and procedures. Vigorous and continuous internal monitoring mechanisms are in place to promptly identify risks and issues. The management, statutory auditors and internal auditors have conducted thorough due diligence on the Companys control environment through rigorous testing.

The management assessed the effectiveness of the Companys internal control over financial reporting as of 31st March 2025, involving self-review, peer review and external audit. The Audit Committee reviews reports submitted by the management and audit reports submitted by internal auditors and statutory auditors. Suggestions for improvement are considered and the audit committee follows up on corrective action. The audit committee also meets the Companys statutory auditors to ascertain, inter alia, their views on the adequacy of internal control systems and keeps the board of directors informed of its major observations periodically. Based on its evaluation, the audit committee has concluded that, as of 31st March 2025, the internal financial controls were adequate and operating effectively.

Internal Audit

The Company engages in the internal audit services, which reports to the Audit Committee, that consists primarily of Independent Directors who possess expertise in their respective domains. It has adopted a comprehensive approach to delegation of authority throughout its team, thereby establishing robust checks and balances within the system to address any potential loopholes. The Internal Audit team enjoys unrestricted access to all organizational information, a capability largely facilitated by the implementation of an Enterprise Resource Planning (ERP) system across the entire organization.

Significant audit observations and the corresponding corrective actions are reported to the Audit Committee. The Audit Committee convenes meetings to review the reports presented by the Internal Auditor. Furthermore, the Audit Committee conducts regular independent sessions with the statutory auditor and the Management to discuss the adequacy and effectiveness of internal financial controls.

Cautionary Statement

This document contains statements about expected future events, financial and operating results of Marinetrans India Limited, which is forward- looking. By their nature, forward-looking statements require the Company to make assumptions and are subject to inherent risks and uncertainties. There is a significant risk that the assumptions, predictions and other forward-looking statements will not prove to be accurate. Readers are cautioned not to place undue reliance on forwardlooking statements as several factors could cause assumptions, actual future results and events to differ materially from those expressed in the forward-looking statements. Accordingly, this document is subject to the disclaimer and qualified in its entirety by the assumptions, qualifications and risk factors referred to in the managements discussion and analysis of Marinetrans India Limiteds Annual Report, 2024-25.