rollatainers ltd Management discussions

GLOBAL SOCIO- ECONOMIC OVERVIEW

A series of severe and mutually reinforcing shocks hit the world economy in 2022, as it approached the midpoint for achieving the Sustainable Development Goals (SDGs) by 2030. While the impacts of the COVID-19 pandemic continue to reverberate worldwide, the war in Ukraine unleashed a new crisis, disrupting food and energy markets and exacerbating food insecurity and malnutrition in many developing countries. High inflation is eroding real incomes, triggering a global cost of-living crisis that has pushed millions into poverty and economic hardship. Simultaneously, the climate crisis is taking a heavy toll on many countries, with heat waves, wildfires, floods, and hurricanes inflicting massive humanitarian and economic damage (Source: https:// www.undp.org/).\\

Global GDP growth is estimated to fall from 3.4% in 2022 to 2.8% in 2023. Growth rate in 2023 in USA is expected to be 1.6%, while the eurozone is expected to remain strained at 0.8%. Chinas economy is set to rebound to 5.2% as mobility and industrial activity pick up after lifting of pandemic restrictions.

Global inflation is expected to fall from 8.7% in 2022 to 7% in 2023 on the back of lower commodity prices. Inflation has already peaked in the US and Europe in early 2023. It is also declining in other major economies including Japan, China and India.

INDIAN ECONOMIC OVERVIEW

The Asian Development Bank (ADB) projects growth in Indias gross domestic product (GDP) to moderate to 6.4% in fiscal year (FY) 2023 ending on 31 March 2024 and rise to 6.7% in FY2024, driven by private consumption and private investment on the back of government policies to improve transport infrastructure, logistics, and the business ecosystem.

GDP growth rate in 2023 is expected to be 5.9 % which is lower than the 2022 growth of 6.8% due to subdued external demand and tightening monetary policy. However, India will remain the fastest growing major economy. Capital investment of close to 3.3% of GDP is expected to crowd-in private investment, strengthen job creation and demand, and raise Indias overall growth potential.

The growth moderation for India in FY2023 is premised on an ongoing global economic slowdown, tight monetary conditions, and elevated oil prices. Government initiatives, including the PM Gati Shakti - National Master Plan, the National Monetisation Plan (NMP) and the Production-Linked Incentive (PLI), are expected to foster economic growth, going forward.

Strong domestic demand, rising employment indicators, reducing inflationary pressures, and a high corporate sector debt profile augur well for the domestic economys growth in the years ahead. As the current account deficit is expected to decrease from the beginning of the year, it would provide a larger safety buffer for capital expenditures, the macroeconomic stability is predicted to further improve in FY23 providing the government more flexibility in managing unforeseen risks and more financial resources to cover unforeseen costs. The trends suggest that Indias economy is on an upward trajectory, and the country is well-positioned to continue its growth despite global turbulence.

Indias Economic Performance in 2022-23:

1. The Indian economys growth slowed to 7.2% in the financial year 2022-23, as compared to a 9.1% rise in the previous fiscal year 2021-22.

2. Capital expenditure (capex) of the Central Government, which increased by 63.4 per cent in the first eight months of FY23, was another growth driver of the Indian economy in the current year.

3. The all-items Consumer Price Index (CPI), a measure of economy-wide inflation, decreased to 5.66% in 2023 from 6.95% in 2022.

4. In 2022-23, general government deficit is estimated to be 9.4% of GDP, lower than in 2021-22 (10.3% of GDP).

5. Enhanced Employment generation was seen in the declining urban unemployment rate and in the faster net registration in Employee Provident Fund.

6. UPI-based transactions grew in value (121 per cent) and volume (115 per cent) terms, between 2019-2022, paving the way for its international adoption.

FINANCIAL PERFORMANCE

During the period under review, based on Standalone financial statements, the Company earned Total revenue for the year ended 31.03.2023 of Rs.135.49 Lakhs as compared to Rs. 57.05 Lakhs for the previous year ended 31.03.2022.

Profit after Tax for the year ended 31.03.2023 stood at Rs. 0.45 Lakhs as compared to Loss after Tax of Rs. 4,993.57 Lakhs in the previous year ended 31.03.2022.

During the period under review, based on Consolidated Financial Results, the Company earned Total Revenue for the year ended 31.03.2023 of Rs. 213.35 Lakhs as compared to Rs. 689.05 Lakhs for the previous year ended 31.03.2022.

The Consolidated Net Loss after Tax for the year ended 31.03.2023 stood at Rs.2074.17 Lakhs as compared to Net Loss after Tax of Rs. 3,018.83 Lakhs for the previous year ended 31.03.2022.

STRATEGY AND OUTLOOK

Rollatainers Limited stands resolute in its unwavering optimism regarding our long-term prospects. In the face of the ongoing challenges that our company and the global business landscape confront, we view these trials as opportunities to not merely survive, but to truly thrive.

Our faith in our ability to adapt and grow remains unshaken, serving as the driving force behind our proactive pursuit of innovative strategies and initiatives. These efforts are designed not only to weather the current storm but to emerge from it stronger and more resilient than ever before.

Strategic planning is at the heart of our approach. We meticulously assess market trends, identify potential shifts, and swiftly adjust our course to align with emerging opportunities. Our commitment to innovation is unwavering, pushing us to explore new avenues, products, and technologies that will not only sustain but also elevate our position in the industry.

Rollatainers Limited is built on a foundation of resilience and adaptability, qualities that have enabled us to navigate through turbulent times in the past. As we face the challenges ahead, we remain confident that our company will not only endure but flourish. We are dedicated to delivering enduring value to our shareholders, customers, and partners, solidifying our legacy as a stalwart in the business world for many years to come.

OPPORTUNITIES & STRENGTHS

1. Market Growth: Opportunities for expanding into new markets, industries, or geographical regions can lead to increased revenue. Strengths such as financial stability, strong leadership, and a talented workforce can help seize these opportunities.

2. Technological Advancements: Embracing emerging technologies can lead to operational efficiencies and innovation. Organizations with a robust technology infrastructure and a culture of innovation are well- positioned to exploit these opportunities.

3. Changing Consumer Preferences: Evolving customer needs and preferences can create opportunities for product or service diversification. A strong brand, effective marketing, and customer-centric approach can be instrumental in capitalizing on these shifts.

4. Globalization: Expanding globally or entering new international markets can lead to increased revenue streams. Strong financials, cultural sensitivity, and a global mindset are assets in pursuing global opportunities.

5. Strategic Partnerships: Collaborations with other organizations, suppliers, or industry leaders can open doors to new markets, resources, and expertise. A network of strategic alliances is a valuable asset for an

THREATS AND CONCERNS

1. Economic Downturns: Economic recessions, fluctuations, or financial crises can impact consumer spending, demand for products or services, and access to capital, affecting an organizations profitability and growth.

2. Competition: Intense competition from existing rivals and new entrants can erode market share and profitability. Keeping pace with competitors and differentiating the organization is a constant challenge.

3. Technological Disruption: Rapid advancements in technology can disrupt industries and business models. Organizations failing to adopt or adapt to new technologies risk becoming obsolete.

4. Regulatory Changes: New regulations or changes in existing ones can create compliance challenges and operational burdens. Non-compliance can lead to legal and financial penalties.

5. Ethical Concerns: Unethical business practices, such as corruption, fraud, or discrimination, can lead to legal consequences and damage an organizations image.