bls international services ltd Management discussions

Global economy

Overview: In 2022, the global economy faced several challenges that led to slower economic growth compared to the previous year. These challenges included:

Russian invasion of Ukraine: The invasion of Ukraine by Russia had significant geopolitical implications and disrupted trade and investment flows in the region.

Unprecedented inflation: Inflation rates surged globally in 2022, reaching 8.7%, which was among the highest in decades. This surge in prices affected consumer purchasing power and business operations.

Pandemic-induced slowdown in China: The lingering effects of the COVID-19 pandemic impacted Chinas economic growth, contributing to the overall global economic slowdown.

Higher interest rates and global liquidity squeeze: Central banks, particularly the US Federal Reserve, raised benchmark interest rates to combat inflation, leading to a global liquidity squeeze.

Quantitative tightening by the US Federal Reserve: The Federal Reserve implemented quantitative tightening measures to reduce its balance sheet, further impacting global liquidity and financial markets.

These challenges resulted in moderated consumer spending, disrupted international trade, and increased energy costs. The decline in global equities, bonds, and crypto assets values from peak levels amounted to USD 26 trillion, equivalent to 26% of the global GDP. Both bond and equity markets experienced negative returns of more than 10%, which was a unique occurrence in 2022.

Foreign Direct Investment (FDI) inflows also declined in 2022, with a sharp decrease in FDI inflows as equity. Global trade expanded by only 2.7% in 2022, and it was expected to slow further to 1.7% in 2023.

Additionally, commodities experienced a decline in prices in 2022, with the S&P GSCI TR (global benchmark for commodity performance) dropping significantly. The availability of low- cost Russian oil contributed to the decline in crude oil prices,

with Brent crude dropping from around USD 120 per barrel in June 2022 to USD 80 per barrel by the end of the year.

The combination of these factors raised concerns about the global economic outlook for the following year, with many anticipating slower growth and potential ongoing challenges for the world economy.

Regional growth (%)	2021	2022
World output	3.2	6.1
Advanced economies	2.5	5.0
Emerging and developing economies	3.8	6.3

Performance of major economies

United States:	Reported GDP growth of 2.1% compared to 5.9% in 2021
China:	GDP growth was 3% in 2022 compared to 8.1% in 2021
United Kingdom:	GDP grew by 4.1% in 2022 compared to 7.6% in 2021
Japan:	GDP grew 1.7% in 2022 compared to 1.6% in 2021
Germany:	GDP grew 1.8% compared to 2.6% in 2021

[Source: PWC report, EY report, IMF data, OECD data]

Outlook

In 2023, the global economy is expected to experience modest growth of 2.8%, influenced in part by the ongoing Russia- Ukraine conflict. Despite this slower growth, there are positive elements in the global economic landscape:

Largest economies not in recession: Major economies such as China, the US, the European Union, India, Japan, the UK, and South Korea are not in a recession. Their resilience helps stabilize the global economy and provides opportunities for growth.

Resilience in About 70% of the global economy: A significant portion of the global economy, approximately 70%, is demonstrating resilience, which means they are not facing major financial distress. This shows that many countries are able to weather the economic challenges.

No recession despite European energy shock: The energy shock in Europe did not lead to a recession, indicating some level of adaptability in the face of supply chain disruptions and energy cost increases.

Positive developments in China and Europe: Chinas departure from its strict zero-covid policy and the resolution of the European energy crisis have fostered optimism for improved global trade performance. These developments could have positive effects on economic activities and international trade.

Strong consumer demand in the US: Despite high inflation, the US economy demonstrated robust consumer demand in 2022. This indicates that consumers are still active in spending, which can contribute to economic growth.

Looking ahead, global inflation is projected to fall marginally to 7% in 2023. However, it is expected to remain relatively high at 4.9% in 2024. This could still pose challenges for economies, but the positive factors mentioned above may help mitigate some of the adverse effects.

Interestingly, despite the global economys projected growth being less than 3% for the next five years, India and China are expected to be major drivers of growth, collectively accounting for half of the global growth. This highlights the economic significance and potential of these two emerging economies in shaping the worlds economic landscape.

Overall, while the global economy is facing challenges and a slower growth trajectory, there are positive indicators that provide hope for recovery and improvement in the coming years. The resilience of key economies and positive developments in different regions may play crucial roles in driving economic performance globally.

Indian economy

Overview: Despite the global economic challenges in 2022, India managed to maintain a robust economic growth rate of 7.2% in FY 2022-23. However, the country still experienced some adverse effects due to the global conflicts and events, even though they were geographically distant from India.

The cautious government approach can be attributed to the uncertainties in the global economy and its potential spill- over effects on India. The government likely adopted a more cautious stance in its fiscal and monetary policies to mitigate any adverse impacts on the domestic economy.

Despite these challenges, Indias economy managed to perform well and emerged as the second fastest-growing

G20 economy in FY 2022-23. This growth rate was impressive given the global economic conditions.

Furthermore, Indias economic performance led to a significant milestone, as it overtook the UK to become the fifth-largest global economy. This reflects Indias rising economic strength and potential.Moreover, Indias population growth resulted in surpassing China to become the worlds most populous nation. This demographic milestone has significant implications for Indias economic and social dynamics.(Source: IMF, World Bank)

Overall, Indias economy showcased resilience amid global uncertainties, and its strong growth rate and demographic advantages positioned it as a key player in the global economic landscape.

11Growth of the Indian economy

Real GDP growth (%)	FY 20 3.7	FY 21 -6.6%	FY 22 8.7	FY23
				7.2

11Growth of the Indian economy quarter by quarter, FY 2022- 23

	Q1	Q2	Q3	Q4
	FY23	FY23	FY23	FY23
Real GDP growth (%)	13.1	6.3	4.4	6.1

(Source: Budget FY24; Economy Projections, RBI projections)

Error! Reference source not found.

As Indias domestic demand remained steady amidst a global slowdown, import growth in FY23 was estimated at 16.5% to $714 billion as against $613 billion in FY22. Indias merchandise exports were up 6% to $447 billion in FY23. Indias total exports (merchandise and services) in FY23 grew 14 percent to a record of $775 billion in FY23 and is expected to touch $900 billion in FY24. (Source: Ministry of Trade & Commerce)

India moved up in the Ease of Doing Business (EoDB) rankings from 100th in 2017 to 63rd in 2022. As of March 2023, Indias unemployment rate was 7.8 percent. In 2022-23, total receipts (other than borrowings) were estimated at 6.5% higher than the Budget estimates. Tax-GDP ratio was estimated to have improved by 11.1 percent Y-o-Y in RE 2022-23.

Per capita income almost doubled in nine years to C172,000 during the year under review, a rise of 15.8 percent over the previous year. Indias GDP per capita was 2,320 USD (March 2023), close to the magic figure of $2500 when consumption spikes across countries. Despite headline inflation, private consumption in India witnessed continued momentum and was estimated to have grown 7.3 percent in 2022-23.

Outlook

The economic outlook for India appears promising, with signs of revival and positive indicators pointing towards potential growth in the coming years.

Increase in rural growth: The last quarter has seen an increase in rural growth, which indicates economic activity and development in rural areas, contributing to overall economic revival.

Decline in consumer price index (CPI) inflation: The appreciable decline in CPI inflation to less than 5 percent in April 2023 suggests that inflationary pressures are easing, providing a more stable economic environment.

Expected growth rate in FY2024: India is projected to grow around 6-6.5% in FY2024, which is a substantial growth rate given the global economic conditions.

Governments capital expenditure: The governments focus on capital expenditure growth, at 35%, can be a significant catalyst for economic growth, as it can boost infrastructure development and create job opportunities.

Broad-based credit expansion: Credit expansion can provide businesses and individuals with access to funds, stimulating investments and consumption, thereby contributing to economic growth.

Improving trade deficit: An improving trade deficit means that India is likely importing less and exporting more, which can positively impact the overall balance of payments and economic growth.

Favorable global landscape: Indias growth prospects are further enhanced by the economic challenges faced by other major economies, such as Europe moving towards a probable recession, the US economy slowing down, and high inflation in both America and Europe.

Production-Linked Incentive (PLI): The PLI scheme is expected to boost downstream sectors, encouraging manufacturing and industrial activities in the country.

Investments in renewable energy and industrial sectors: Indias significant investments in renewable energy and other sectors indicate the countrys commitment to sustainable growth and reducing its reliance on traditional energy sources.

Less exposure to Chinese economic weakness: Indias reduced direct trade exposure to China compared to its Asian peers makes it less vulnerable to Chinese economic fluctuations.

Considering these positive factors, India is poised to outpace Germany and Japan and emerge as the third-largest economy by the end of the decade. The outlook for private business investment remains positive, indicating a favorable business climate in the country despite the increase in interest rates.

Overall, the green shoots of economic revival and the supportive global landscape position India as a promising player in the global economic landscape, with the potential for significant growth and economic transformation in the coming years.

Union Budget FY 2023-24 provisions

The Budget 2022-23 for India reflects the governments commitment to laying a strong foundation for the future of the Indian economy. By raising capital investment outlay significantly, the government aims to boost economic growth and address critical areas that can drive development and progress. Some key highlights of the budget are as follows:

Increased capital investment outlay: The government raised the capital investment outlay by 33% to C10 lakh crores, equivalent to 3.3% of GDP. This substantial increase in investment is aimed at funding various projects that can stimulate economic growth.

PM Gatishakti: The PM Gatishakti initiative focuses on enhancing connectivity and infrastructure development, which can have a positive impact on trade and transportation across the country.

Inclusive development: The budget emphasizes inclusive development, aiming to ensure that economic growth benefits all sections of society, including marginalized and underprivileged communities.

Productivity enhancement and investment: The focus on productivity enhancement and investment is crucial for boosting industrial output and overall economic efficiency.

Sunrise opportunities and energy transition: By investing in sunrise sectors and emphasizing energy transition and climate action, the government aims to tap into emerging industries and promote sustainable practices.

Financing of investments: Adequate financing is essential for implementing various projects, and the budget allocates resources to support these investments.

Investment in defence: The budget allocates a substantial outlay of C5.94 lakh crore for the Ministry of Defence, reflecting the governments commitment to strengthening national security.

Production Linked Incentive (PLI) schemes: The announcement of an outlay of C1.97 lakh crore for PLI schemes across 13 sectors is expected to boost manufacturing and make India a competitive global supplier of goods.

Road construction: The government plans to accelerate road construction significantly in FY24, which will improve connectivity and logistics infrastructure in the country.

Indias global positioning: The budgets emphasis on infrastructure development, manufacturing, and services sectors indicates a structural shift that can enhance Indias global positioning as a long-term provider of manufactured products and services.

Overall, the Budget 2023-24 reflects the governments commitment to fostering economic growth, improving infrastructure, and driving key sectors forward. By making substantial investments and focusing on inclusive and sustainable development, India aims to strengthen its position as a credible global player in the long run.

Industry overview

Global tourism industry overview

The tourism sector experienced a notable rebound in 2022 compared to the previous year, indicating signs of recovery from the impact of the COVID-19 pandemic. The significant increase in the sectors contribution to global GDP and the rise in international tourist arrivals are positive indicators for the industrys future prospects. Here are some key points to consider:

Strong recovery in 2022: The tourism sector contributed 7.6% to global GDP in 2022, which is a 22% increase by quantam over 2021. This suggests that the industry was able to bounce back to a considerable extent after the challenges faced during the pandemic.

Continued growth projection: The global tourism industry is expected to grow at a compound annual growth rate of 5% over the next decade. By 2032, it is estimated to be valued at USD 17.1 trillion, indicating sustained expansion in the sector.

Gradual recovery in international tourist arrivals: While more than 900 million tourists traveled internationally in 2022, the number is still only 63% of the pre-pandemic level. However, the recovery is projected to continue in 2023, with international tourist arrivals expected to reach 80% to 95% of pre-pandemic levels.

Shift in tourist preferences: In recent years, lesser-known destinations in Asia and Africa have gained popularity,

indicating a shift in tourist preferences towards more diverse and unique travel experiences.

Significance of Chinas outbound market: The lifting of COVID-19 travel restrictions in China, the worlds largest outbound market in 2019, is a crucial step for the recovery of the tourism sector in Asia and the Pacific and worldwide. Chinas increasing outbound travel can significantly impact global tourism trends.

Potential challenges: Geopolitical tensions, ongoing health challenges related to COVID-19, and economic uncertainties may continue to pose potential obstacles to tourisms full recovery in the coming months.

Overall, the tourism sectors resilience and projected growth rates are positive signs for the global economy, as tourism plays a significant role in driving economic activities, job creation, and cultural exchange across countries. However, uncertainties and challenges persist, and the industrys recovery will likely continue to be influenced by various factors in the years ahead. (Source: futuremarketinsights, Travel and tourism economic impact, Barometer UNWTO, reportlinker.com)

Visa and consular services industry overview

The global visa service market is experiencing significant growth, driven by various factors such as the recovery of the tourism industry after the COVID-19 pandemic and increased international travel. Here are some key statistics and trends related to the visa service market:

Market size and growth: The global visa service market is expected to reach USD 8.2 billion by 2028, with a Compound Annual Growth Rate (CAGR) of 14.32% during the period of 2022-2028. This rapid growth reflects the increasing demand for visa services as international travel resumes.

Dominance of tourist visas: Tourist visas accounted for the majority of the market share in 2021, and it is projected to continue growing in the post-COVID-19 period, reaching a value of USD 7 billion by 2028, with a revised CAGR of 15.60%.

Regional market sizes: As of 2021, the China visa service market was valued at US$104.41 million, the North America visa service market at US$434.92 million, and the Europe visa service market at US$1.4 billion. These regional markets represent significant segments of the global visa service industry.

Chinas market growth: Chinas visa service market is predicted to experience substantial growth, with its market share projected to reach 11.25% by 2028. This growth is

expected to be driven by a CAGR of 31.50% through the analysis period.

Increase in foreign tourists to India: The number of foreign tourists visiting India in 2022 increased to 6.19 million, which was over four times higher than the previous years figure of

1.52 million. This surge in foreign visitors to India indicates a strong rebound in the countrys tourism industry.

The growth in the global visa service market and the increase in foreign tourists visiting countries like India indicate a positive trend in the tourism and travel sector. As the world recovers from the impact of the pandemic, international travel is expected to resume and contribute further to the expansion of the visa service market. Additionally, Chinas rapid growth in this sector signifies the countrys increasing role as a major player in international tourism. (Source: giiresearch.com, economictimes.com)

Growth drivers of the global tourism market

The global tourism market is experiencing significant growth, driven by various factors that cater to changing consumer preferences and increased accessibility. Here are the key growth drivers of the global tourism market:

Adventure tourism and ecological tourism: There is a rising interest in outdoor activities and sustainable tourism practices in North America and Europe, making adventure and ecological tourism the fastest-growing sectors in these regions.

Adoption of tourism websites: The increasing use of tourism websites and social networking sites plays a vital role in managing and monetizing various types of tourism, enabling the market to advance further.

Cultural and pilgrimage tourism: Growing interest in exploring different cultures and religious traditions is driving significant growth in Asia, Africa, and South America.

Millennial preferences: Millennials prefer experiential tours at reasonable prices, leading to increased spending on recreational activities and driving growth in the tourism industry.

Increasing per capita income: The rising per capita income in low and middle-income countries provides individuals with more disposable income to spend on leisure activities, including travel.

Sustainable tourism: The trend towards sustainable travel options is on the rise, indicating the growing potential of sustainable tourism practices.

Students studying abroad: The increasing number of students studying abroad has contributed to a surge in socio- economic growth and led to increased tourism and travel in related countries.

Low-cost carriers (LCCs): Low-cost carriers offer affordable airfares, attracting budget travelers and increasing air travel in various regions.

Easy visa processes: Countries offering visas with simplified processes and reduced paperwork attract more international travelers, driving tourism growth.

Outsourced visa processing services: The outsourcing of visa processing services has transformed the visa application process, making it efficient and accessible, boosting tourism.

Overall, these growth drivers are contributing to the expansion of the global tourism market, creating opportunities for different regions and sectors within the industry. As travel becomes more accessible and diverse, the tourism market is expected to continue growing in the coming years. (Source:

futuremarketinsights, researchnester.com, D&B Visa application outsourcing report)

Global e-governance overview

The e-governance market is experiencing significant growth globally, driven by various factors such as the need for effective solutions to address changing data regulatory requirements, technological advancements, and the impact of the COVID-19 pandemic. Here are the key points contributing to the growth of the e-governance market:

Market size and growth: The global e-governance market is projected to reach USD 45.76 billion by 2026, growing at a CAGR of 12%. This indicates the increasing adoption of e-governance solutions by governments worldwide.

Dominance of North America: North America dominates the global e-governance market, owing to the regions focus on effective solutions, technological advancements, and compliance with data regulatory requirements.

Impact of Covid-19: The Covid-19 pandemic has accelerated the adoption of e-governance solutions as governments sought to digitize and automate processes, allowing residents to access services online without visiting government offices.

Outsourcing as a solution: Governments are turning to outsourcing e-governance services to access external expertise, provide services at a lower cost, and overcome challenges like limited financial resources and a lack of

qualified IT personnel.

Digital identity and data governance: The emergence of the digital economy and globalization has led to an increasing number of users with digital identities, driving the need for data governance frameworks and data-centric e-government strategies.

Streamlining procedures: Governments aim to provide seamless services to citizens and meet their expectations for prompt and convenient interactions, which can be achieved through streamlining procedures and privatizing e-governance services.

Citizen expectations: Citizens expect 24/7 access to services, quick resolution of issues, and advanced online services. E-governance plays a vital role in meeting these expectations and enhancing citizen experiences with the government.

Private entities role: Private entities possess the data, tools, and capabilities to support governments in delivering efficient and innovative e-governance services to citizens.

Overall, the e-governance market is driven by the need for digitization, efficient service delivery, and meeting citizens evolving expectations. As governments continue to invest in research and development to enhance e-governance solutions, the market is expected to witness sustained growth in the coming years. (Source: globenewswire.com)

Indian e-governance overview

E-governance in India has been rapidly evolving to meet the growing demand for digital services and to enhance the efficiency and transparency of government operations. The countrys large population and increasing internet penetration make e-governance initiatives crucial for providing convenient and accessible services to citizens. Here are some key points regarding e-governance in India:

E-governance initiatives: India has implemented several e-governance initiatives, such as the Digital India program, National Portal of India, Aadhaar (biometric identification system), online tax filing and payment, digital land management systems, and common entrance tests. These initiatives cater to different types of interactions, including G2G, G2C, G2B, and G2E.

Objectives: The main objectives of e-governance in India include simplifying governance, increasing transparency and accountability, reducing corruption, and providing speedy administration of services and information to citizens and businesses.

Challenges: E-governance in India faces challenges such as limited computer literacy and internet accessibility in certain regions, reduced human interaction in service delivery, potential risks of data theft, and the need for effective administration to ensure the success of digital initiatives.

Digital payments and internet usage: India has emerged as a leader in real-time payments, with over 260 million UPI transactions daily. It is also the second-largest internet user in the world, with 692 million internet users as of the start of 2023, highlighting the potential for digital services and e-governance.

Outsourcing for efficiency: Indian governments are increasingly partnering with private sector organizations to enhance the quality and responsiveness of public services. Outsourcing of e-government services helps governments respond to changing policy contexts, save costs, and improve service delivery, especially in remote locations.

Centralized digital sewa portal: The centralized digital Sewa portal provides access to 28 core government services for Indian citizens through the CSC network, simplifying access to essential services.

Lifecycle approach: The goal of e-governance in India is to adopt a lifecycle approach, providing public services to citizens from birth to death, ensuring comprehensive and efficient service delivery.

As e-governance continues to advance in India, strategic partnerships with private sector organizations and the adoption of technology-driven solutions will be key to meeting citizens needs and providing efficient and transparent governance. (Source: investindia.gov.in, worldometer.com, pib.gov. in, cleartax.in)

Business correspondents (BC)

Financial Inclusion Plans (FIPs) have emerged as a systematic approach for financial institutions to achieve sustainable improvements in financial inclusion. These plans document the progress of banks in expanding their services and reaching underserved and unbanked populations. The Business Correspondent (BC) model has been a significant contributor to financial inclusion efforts, allowing banks to extend their services through retail agents in locations other than traditional bank branches.

The BC model is driven by regulators and aims not only to provide financial services through branchless banking but also to promote job creation, aligning with the national

agenda. BCs offer a range of services, including small savings accounts, cash-in/cash-out, remittances, micro-insurance/ pensions, debt recovery, and direct subsidies to citizens through various government schemes like Pradhan Mantri Jan Dhan Yojana (PMJDY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), and Pradhan Mantri Mudra Yojana.

The success of the BC model can be attributed to its cost- effectiveness and flexibility, enabling rapid growth compared to traditional banking branches. Programs like PMJDY have played a crucial role in increasing financial inclusion by opening millions of bank accounts and mobilizing substantial deposits.As of June 2022, the Pradhan Mantri Jan Dhan Yojana (PMJDY) program had resulted in the opening of 456 million bank accounts and a total deposit amount of C1.68 trillion (equivalent to USD 21.56 billion).

In India, the banking system includes various types of banks, such as public sector banks, private sector banks, foreign banks, regional rural banks, urban cooperative banks, and rural cooperative banks. The presence of a large number of ATMs, especially in rural and semi-urban areas, further supports financial inclusion efforts.

Banks are expected to strengthen their BC models further to expand their operational reach and promote financial inclusion. Correspondent banking partnerships are essential in this context, as they enable banks to access financial services in multiple locations and facilitate various payment options, even for customers without traditional bank accounts.

Overall, the combination of FIPs, the BC model, and correspondent banking partnerships plays a crucial role in advancing financial inclusion in India and promoting economic development by providing access to financial services for previously underserved populations. (Source ibef.org)

Growth drivers of the global e-governance business

The growth of e-governance services globally is driven by several key factors. These factors vary from country to country, but some common drivers include:

Technological advancements: Rapid advancements in information and communication technologies (ICTs) have provided the foundation for the growth of e-governance services. Technologies such as cloud computing, mobile applications, artificial intelligence (AI), blockchain and big data analytics have enabled governments to develop and deliver digital services more efficiently.

Increasing internet penetration: The widespread availability

of the internet and increasing internet penetration rates have created opportunities for governments to deliver services online. Improved internet infrastructure and the availability of affordable internet access have expanded the reach of e-governance services to a larger population.

Citizen demand for convenience: Citizens increasingly expect convenient and accessible services from their governments. E-governance services provide the convenience of accessing government services anytime, anywhere, without the need for physical visits to government offices. This demand for convenience has driven governments to digitize their services.

Cost efficiency and resource optimization: E-governance services can help governments reduce administrative costs and optimize resources. By automating processes and digitizing services, governments can streamline operations, reduce paperwork, and minimize the need for physical infrastructure, resulting in cost savings.

Enhanced service delivery and efficiency: E-governance services have the potential to improve service delivery and efficiency by reducing bureaucratic processes, minimizing paperwork, and eliminating manual errors. Online service delivery platforms enable faster processing of applications, faster response times to citizen queries, and improved overall service quality.

Transparency and accountability: E-governance services can enhance transparency and accountability in government processes. Online platforms enable citizens to track the progress of their applications, access information related to government policies, and participate in decision-making processes. This transparency helps build trust between citizens and governments.

Digital inclusion and bridging the digital divide: E-governance services play a crucial role in promoting digital inclusion by providing equal access to government services for all citizens, regardless of their geographical location or socio- economic status. Governments are implementing strategies to bridge the digital divide and ensure that marginalized and underserved populations have access to digital services.

International commitments and agreements: Governments around the world have made commitments to promote e-governance and digital transformation as part of their national agendas. International agreements and partnerships, such as the United Nations Sustainable Development Goals (SDGs), often include targets related to e-governance and digital inclusion, driving governments to invest in these areas.

Crisis and emergency situations: During crises and emergency situations, such as natural disasters or pandemics, e-governance services become even more critical. Digital platforms enable governments to provide timely information, deliver emergency services, and ensure continuity of essential services during challenging times.

These drivers collectively contribute to the growth and adoption of e-governance services globally, as governments recognize the benefits of digital transformation in improving governance, service delivery, and citizen engagement.

The Companys strengths and opportunities

Strengths

Experience: BLS International has gained extensive expertise in serving government clients and has established a strong reputation for being reliable and trustworthy. The Companys dedication to providing exceptional service is a result of its deep understanding of clients needs and its proven track record in meeting their expectations. BLS International is supported by a team of highly skilled and experienced professionals who maintain a high level of service quality.

Technology: BLS International has utilized digital technologies to improve its services. The Company employs various technological solutions that provide exceptional service quality, including document scanning and biometric verification. BLS International maintains strict quality standards across all its locations to ensure consistent service delivery. The Company has established a standardized set of processes and has benchmarked them to minimize errors and inefficiencies.

Transparency: The Company provides transparency to clients, reinforced with training and compliance with emerging norms.

Increasing outsourcing by the government: Several European Union countries have issued new tenders, while Australia, New Zealand and Canada are planning to issue tenders for visa processing. There are numerous other countries considering outsourcing their visa processing to private entities.

Opportunities

BLS International: Seizing new horizons

Expansion into new geographies and business segments: BLS International has consistently proven its versatility and adaptability by successfully venturing into untapped markets and exploring diverse business segments.

Elevated brand position in visa consultancy: With a strategic

focus on providing standalone services to new clients, BLS International has strengthened its brand presence and reputation in the highly competitive visa consultancy industry.

Front-end and citizen services expertise: Leveraging the valuable insights gained from its involvement in the Punjab e-governance project, the Company has significantly expanded its addressable market. This enhanced expertise in front-end and citizen services opens up exciting possibilities for growth and innovation.

By capitalizing on these achievements and strengths, BLS International is well-positioned to harness a world of new opportunities and drive sustainable growth in the coming years. With a commitment to excellence and a forward- looking approach, the Company is poised to continue its remarkable journey of success and make a lasting impact in the global market.

Business performance

With a remarkable presence in over 64 countries, BLS International has emerged as a leading provider of visa and consular services. Strategically located global centers cater to multiple government clients, ensuring convenience and accessibility for applicants.

Seamless application process: BLS International offers a streamlined visa application process, either directly at their centers or through designated agents. Thorough documentation verification is conducted to ensure compliance with requirements. Once the applications meet the necessary criteria, they are processed and promptly forwarded to the respective government clients.

Diversified revenue model: BLS Internationals revenue model is primarily built on the collection of fees from visa applicants. This balanced approach ensures the Companys financial stability and sustained growth.

Strategic partnerships: In select locations, BLS International collaborates with facility management partners to operate its services efficiently. These partnerships are established under the esteemed BLS International brand, with key positions held by their own employees, ensuring operational control and excellence.

Commitment to quality: With a focus on delivering exceptional service quality, BLS Internationals expert team consistently upholds high standards in visa processing and consular services. Its dedication to excellence has earned it reputation of trust and reliability among government clients and applicants alike.

As BLS International continues to expand its global footprint and enhance its service offerings, the Company remains dedicated to providing seamless visa and consular services to clients and applicants worldwide. Through innovative solutions and strategic partnerships, BLS International is set to lead the way in the industry, making a positive impact on international travel and connectivity.

Risk management

Risk management is a fundamental aspect of our corporate strategy and is indispensable for achieving BLSs long-term goals. Our success hinges on our ability to recognize and capitalise on opportunities arising from our operations and the markets we serve. We adopt an integrated approach to risk management, with risk and opportunity assessment at the center of the Boards agenda.

Our risk appetite is guided by the following principles: consistent, competitive, profitable and responsible growth that benefits our stakeholders and the wider community. Our decisions regarding visa processing, B2B and B2C business development are governed by urgency, with agility and adaptability to changes in the business environment.

Our actions align with our code of conduct principles and policies, reflecting our commitment to conducting our business with the highest standards of ethics and integrity.

By embedding risk management into our decision-making processes, we can identify and address potential risks proactively. This approach is critical to maintaining the trust and confidence of our stakeholders, including clients, employees, shareholders and the wider community. It enables us to pursue our growth objectives with greater confidence and success.

Risk management framework

The growth of e-business and modern trade presents a significant opportunity for BLS to expand and the Company aims to develop its e-commerce and B2C citizen services capabilities. The covid-19 pandemic has accelerated the digitisation of purchasing behaviours and the Company must adapt to meet changing customer needs.

The Company prioritises operational efficiency and effectiveness and approaches risk management to provide reasonable assurance that the Companys assets are safeguarded, risks are assessed and mitigated, while necessary information is disclosed. The risk management committee oversees the risk management plan, which covers

risks related to visa services and digit services.

The Companys focus on liquidity risk management aims to maintain sufficient liquidity and ensure funds are available when needed. Generating cash flows from operations enables the Company to meet its financial obligations, including lease liabilities, as they fall due.

The Company has identified the key risks relevant to its business, acknowledging that new risks may emerge in the future. The rapidly evolving business landscape, macroeconomic and geopolitical movements and system vulnerabilities have accentuated these risks. To manage these, the Company focuses on the most material risks and continuously monitors and evaluate its risk management efforts.

The commitment to risk management is essential to the Companys long-term success. By identifying and addressing the most relevant risks, the Company protects its assets, maintains stakeholder trust and deliver value to its customers.

Principal risks and mitigation strategies

IT availability risk: The potential disruption of critical business operations due to problems with IT systems, such as hardware or software failures, cyber-attacks, or other security breaches.

Mitigation: To secure its critical business environment, the Company undertook mitigating actions like using SEP Antivirus, blocking unauthorised and unsecured access to websites through firewall, using encrypted backup software, allowing access to business application URLs only via allowed static IPs and VPNs and maintaining various certificates such as CMMI ML3 assessed for DEV and services, ENS Certified, ISO 27001:2013 Certified for information security, ISO 9001:2015 for quality management system and ISO 31000:2018 Certified for risk management.

Legal and secretarial risk: The risk of legal or regulatory sanctions, financial loss, or damage to a Companys reputation resulting from the Companys failure to comply with laws, regulations, or ethical standards.

Mitigation: The Company keeps scanned copies of executed agreements and contracts in a dedicated contract folder, along with a hard copy of the same in the relevant departments file. The Company also maintains a register where entry of final executed agreements with certain terms and conditions are registered.

Competition risk: This refers to the potential impact of increasing competitive pressures on the Companys ability to achieve expected margins and market share.

Mitigation: The Company mitigates the risk by delivering exceptional service and building up brand equity over the years as one of the leading firms in the visa and technology- enabled citizen services sector. Also, the Company has an unrivalled presence in the country and the world through its business-to-consumer services for several states and business correspondent operations.

Currency volatility risk: Currency volatility creates transaction and translation risks, especially if the Indian rupee appreciates against any major currency. This could impact reported revenue, profitability and collection losses.

Mitigation: The Company has a currency hedging policy consistent with market best practices to minimize the impact of exchange rate fluctuations on receivables, forecast revenue and other current assets and liabilities. The Company periodically determines and checks its hedging strategy. Also, its existing businesses in various countries have a natural hedge against foreign currency exposure because their revenues and direct expenses are denominated in the same local currency and any excess funds are consolidated in dollars or equivalent currencies that are pegged with the currency of the United States of America, such as the Dirham.

Geopolitical risk: Geopolitical disturbances, such as the war in Ukraine and the associated volatility in the global economy, or trade disputes, may have a negative impact on revenue growth. In geopolitically sensitive zones, risks to service delivery, business continuity, cybersecurity, sanctions compliance and human rights could be elevated.

Mitigation: The Company has implemented a strategy of broad-based business revenue mix and diversification across geographies and business verticals to reduce the impact of geopolitical events. The Company monitors changing geopolitical events and their potential impact on business and strengthens internal systems to prevent against secondary risks. Despite numerous macro- and microeconomic obstacles, Indias continuous economic growth remains uninterrupted, aided by regulatory improvements and suggested investment plans.

Human resources

People are the pillars upon which BLS International stands. To support the development and growth of its people, BLS International has established a human resource team that regularly engages with employees and hones their skills to improve organisational efficiency. The human resources department focuses on developing talented personnel and building capacities to ensure future growth. BLS International encourages innovation and maintains a culture of efficiency and productivity. The Company had more than [] employees on its payrolls as on 31st March 2023.

Training

BLS ensures that its staff members are well-informed about their job roles and tasks by providing them with comprehensive training exercises and manuals through visa service centres. This two-level system ensures effectiveness, competence and smooth customer service. The Companys training staff assists in assimilating new employees into the system and equipping them with the essential abilities to enhance customer satisfaction and increase productivity at the relevant visa service centres.

Personnel

BLS International builds staff competency levels at visa service centres with local recruits, beginning with visa service centre managers. The Companys personnel focus on customer servicing knowing that the technical components on which the visa processing services are based on require little or no local technical expertise. The Companys pursues a polycentric staffing approach for its global operations, where local (host country) managers are hired first to fill key positions. Hiring host country managers and staff virtually eliminates the need to assimilate staff in order to operate in a visa service centre. It also encourages cultural empathy and flexibility, increasing the centres ability to adapt and prosper within the local culture and working environment. Furthermore, it increases the visa service centres productivity by bolstering the comfort levels for both the personnel and the applicants. Using local managers also proves helpful when it comes to hiring new personnel, as they can be made aware of their responsibilities with ease.

Companys financial performance

During the year under review, the Company generated a revenue of C1,516.19 Crores compared to C849.89 Crores in the previous year, a growth of 78.40%. The Company repeated a net profit of C 238.91 Crores, as opposed to a net profit of C121.21 Crores in the previous year.

(Figures in C lakhs) Revenue from operation	FY 2021-22 84988.97	FY 2022-23	YoY Change (in %)
		151618.88	78%
EBITDA	10692.61	22100.03	106.70%
PBT	11395.84	22048.87	93%
PAT	11120.27	20426.58	84%
Networth	56978.10	80285.36	41%

11Details of significant changes in the key financial ratios

11In accordance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, details of significant changes in key financial ratios and any changes in the return on net worth of the Company including explanations thereof are given below:

Ratios Current Ratio	As at March 31, 2023	As at March 31, 2022	Reason for variation
	5.68	7.26	Increase of current liability
Debt-Equity Ratio	0.01	0.02	Repayment of borrowings
Debt Service Coverage Ratio	1.68	8.84	Due to increase in earnings
Return on Equity Ratio	29.76%	21.60%	Due to increase in profit
Trade Receivables turnover ratio	55.22	13.88	Significant reduction in debtors
Trade payables turnover ratio	43.10	41.13	Increased cost of services due to higher level of operations
Net capital turnover ratio	6.46	4.99	Increased revenue due to higher level of operations
Net profit ratio	13.47%	13.08%	Increased revenue due to higher level of operations
Return on Capital employed	27.91%	20.03%	Increase in earnings and shareholders fund
Return on investment	0.03	0.02	-
Inventory turnover ratio	-	-	There is no inventories in the previous year. Hence not required to report

Internal control systems and their adequacy

The Company believes that safeguarding of assets and business efficiency can be prolonged by exercising adequate internal controls and standardising operational processes. The internal control and risk management system is structured and applied in accordance with the principles and criteria established in the corporate governance code of the organisation. It is an integral part of the general organisational structure of the Company and involves a range of personnel who act in a coordinated manner while executing their respective responsibilities. The Board of Directors offers its guidance and strategic supervision to the Executive Directors and management, monitoring and support committees. The control and risk committee and the head of the audit department work under the supervision of the Board- appointed Statutory Auditors.

Cautionary statement

This statement made in this section describes the Companys objectives, projections, expectation and estimations which may be ‘forward-looking statements within the meaning of applicable securities laws and regulations. Forward- looking statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realised by the Company. Actual result could differ materially from those expressed in the statement or implied due to the influence of external factors which are beyond the control of the Company. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements on the basis of any subsequent development, information or events.