Accuracy Shipping Ltd Management Discussions

Global Economy

In 2024, the global economy displayed signs of stability as inflation moderated and monetary stances became more supportive across key markets.

As trade policies and global trends continue to shift, major economies are recalibrating strategies to support economic resilience and drive eguitable development across regions.

Commodity prices in 2024 reflected a mixed trend. Abundant supply and subdued demand have kept prices largely stable in the second half of the year. Oil, in particular, remained under pressure due to weak global demand projections and ample inventories.

Global trade, a key driver of economic activity, grew modestly by an estimated 3.3% in 2024. Trade growth in advanced economies increased by 2.1 %, while emerging markets and developing economies (EMDEs) expanded by 5.0%. The slowdown was shaped by multiple headwinds, including rising protectionism, trade distortions, and geopolitical tensions such

as the Ukraine-Russia conflict, which disrupted supply chains and escalated costs. In addition, the Red Sea crisis caused severe shipping delays and increased freight costs, further straining global trade flows and impacting supply reliability across industries.

Outlook

The global economic outlook demonstrates resilience and opportunity. Global output is anticipated to grow steadily by 2.8% in 2025 and 3.0% in 2026, with the US maintaining strong momentum and emerging economies exhibiting significant growth potential. Advanced economies, particularly in Europe, are expected to experience moderate growth.

Global headline inflation is expected to reach 4.3% in 2025 and 3.6% in 2026, with advanced economies reaching target levels of 2.1 % by 2025. In line with this, crude prices are likely to decline in 2025. However, nonfuel commodity prices are set to rise by 2.5%, supporting growth in key resource-driven sectors.

Indian Economy

India, the fastest-growing major economy, maintained its growth trajectory in FY 2024-25, though the pace moderated due to the high base effect India achieved a GDP growth of 6.5% in FY25, supported by resilient consumer spending, improving rural demand, expansion in services and a growing contribution of high-value manufacturing to exports.

Inflation Dynamics and Policy Response

Annual inflation eased to4.6% in FY25 from 5.4% in the previous fiscal year. Easing pressure on commodity prices led the MPC to cut the repo rate by 50 basis points from 6.5% to 6.0%, reducing the repo rate twice during the fiscal year, in five years.

Agricultural, Manufacturing, and Production Activities

In FY25, the agriculture sector grew by 3.8%, the industry sector expanded by 6.2%, and the services sector recorded a robust growth of 7.2%.The core sector maintained stable momentum, registering a 4.6% growth.

India Manufacturing PMI rose to 58.1 in March 2025, exceeding the flash estimate of 57.6 and Februarys 56.3, marking the highest level since July 2024. New orders and output saw their biggest increase in eight months, while buying levels reached a seven-month high. Notably, the urban unemployment rate did not increase until the third guarter of FY25.

The annual GST collections increased by 9.98% to T16.75 lakhs crores in FY25, supported by healthy economic momentum and improved compliance.

External Trade and Investment Trends

For FY25, Indias current account deficit (CAD) narrowed to 0.6% of GDP (US$23.3 billions) from 0.7% of GDP (US$26.0 billions) in FY24, reflecting stronger external sector stability. Service exports registered robust growth of 11.6%, while FDI inflows rose sharply by 17.9% to T4.81 lakhs crores (US$55.6 billions). Overall exports expanded 6.0% year-on-year during April-December 2024. Supporting this momentum, Indias forex reserves touched a new all-time high of US$688.13 billions at the end of April 2025, strengthening the countrys external resilience.

Way Forward

Indias economy is expected to grow at a moderate pace of 6.3- 6.8% in FY26, given the high base of the previous year. Despite this, India is expected to remain among the fastest-growing major economies, contributing meaningfully to global growth.

While growth remains promising, uncertainties like a global slowdown, escalating geopolitical issues, fresh U.S. tariffs, and trade disruptions threaten to slow the economy. On the domestic side, subdued urban demand, higher food inflation, and weak investment levels may further pressure growth.

Freight Forwarding Market Scenario

The global freight forwarding market has witnessed steady growth in recent years, reaching US$572.25 billions in 2025 and it is expected to grow to US$740.85 billions by 2030 at a CAGR of 5.3%. This momentum is being shaped by the rapid adoption of artificial intelligence, the greater use of data-driven analytics, expanding e-commerce services, and a growing shift towards sustainable logistics practices.

At the same time, the outlook is tempered by geopolitical uncertainties. Trade tensions, particularly tariff disputes between the United States and its partners, have raised compliance costs and created delays in cross-border flows, leading towards a downward revision in growth expectations.

Indias Contribution to Freight Forwarding

Indias freight forwarding industry has emerged as one of the fastest-growing globally, with a market size of US$128.40 billions in 2024. It is expected to grow at a CAGR of 9.4 % between 2025 and 2034, reaching nearly US$315.31 billions by 2034.This momentum is being fuelled by rising global trade flows, rapid growth in e-commerce, and favourable government initiatives that are modernising logistics infrastructure.

Indias e-commerce sector has been a major catalyst, with significant growth in gross merchandise volume.Tier-1 cities accounted for 31.1% of order volume growth, followed by Tier-ll (23.3 %) and Tier-Ill cities (22.4 %). Over the coming years, rural e-commerce penetration is expected to be a key driver, generating fresh demand for freight forwarding services.

The long-term outlook for Indias freight industry is strongly linked to its infrastructure expansion. By 2047, freight volumes are projected to rise nearly fivefold. The rollout of Gati Shakti Multi-Modal CargoTerminals and Dedicated Freight Corridors will play a pivotal role in enabling freight forwarders to optimise transportation mixes across road, rail, air, and waterways, thereby strengthening overall supply chain efficiency.

Outlook

The global freight forwarding sector faces short-term pressures from trade tensions, tariffs, and regulatory hurdles, but longterm growth is supported by digitalisation, e-commerce expansion, and sustainable logistics. In India, structural reforms, digital adoption, and infrastructure investments are driving strong momentum, with deeper e-commerce penetration and multimodal transport making the country one of the fastest- growing and most influential freight markets globally.

(Sources: Mordorintelligence, Expert market research)

https://vvvvvv,rnorclorintelligence,corn/inclustry-reports/freight-forvvarcling-rnarket) (h tt ps ://www,ex pe rt ma rket resea rc h,co m/reports/india-freight-forwarding-market)

Global Cargo Shipping Sector

The global cargo shipping market reached 11.61 billions tons in 2023 and it is expected to grow to 14.72 billions tons by 2032, with a CAGR of 2.7%.This growth is driven by the rising cross- border trade, the increasing bulk transport of raw materials, and the growing demand for affordable food products. Expansion of global supply chains, liberalisation of trade policies, and advancements in waterborne shipping technologies have further enhanced operational efficiency, lowered coordination costs, and enabled faster, and reliable transportation.

In 2024, global container volumes registered a strong recovery, expanding by 6.2%, while demand forTEU-miles surged by 21%. According to Sea Intelligence, this growth ran counter to initial concerns of market weakness and was primarily fuelled by the rerouting of vessels around Africa, which significantly raised global demand for TEU-miles.The firm noted that the Red Sea crisis pushed year-on-year demand growth to levels exceeding even the spike witnessed during the pandemic period.

Containerised cargo flows from Asia to North America recorded the sharpest increase among the seven regions tracked by ContainerTrade Statistics, with a growth of 12% in 2024.This was followed by notable gains in shipments to Latin America, Europe, and Oceania. In absolute terms, global container volumes rose by 10.7 millionsTEU over 2023. While seven trade lanes experienced a combined decline of 920,000 TEU, the remaining 42 lanes saw a net increase of 11.6 millions TEU. The steepest contractions were observed in trades from Europe to the Indian

subcontinent and the Middle East, along with back-haul freight from Europe to the Far East and from the Indian subcontinent and Middle East to Africa.

Contribution of Air Cargo

Parallel to this, the global air cargo industry in 2024 is witnessing steady growth volumes reached at 62 millions tonnes. The sectors resilience and adaptability underscore its critical role in facilitating global trade, particularly in time-sensitive and high- value shipments. Growth is being fuelled by the rapid rise of e-commerce, the need for efficient supply chain operations, and the limitations of ocean shipping.

Challenges

Despite capacity constraints and geopolitical headwinds, including the Red Sea crisis, the Russia-Ukraine conflict, and U.S. tariff measures, the maritime and airfreight sectors continue to post steady growth. Developing economies are driving momentum through accelerated economic liberalisation, the creation of new trade corridors, and improved connectivity across sea and air routes, helping to offset global disruptions.

Outlook

The Asia-Pacific region stands out as the worlds leading logistics hub, commanding 39.55% of the global cargo shipping market in 2024. Its dominance is underpinned by a strong manufacturing base, extensive trade networks, and strategically positioned maritime and air infrastructure. Air freight demand

in the region has surged by 13.4% year-on-year, reflecting the sectors growing role in facilitating time-sensitive and high- value shipments. Together, maritime and airfreight remain vital pillars of global commerce, ensuring the efficient movement of goods, strengthening supply chain resilience and supporting sustainable economic growth worldwide.

Cargo Shipping Market: Market Share by Ship Type, 2024

Indian Cargo Shipping Sector

Indias shipping sector maintained steady growth in 2024, with the maritime freight market valued at approximately US$34.9 billions. The sector is poised to expand at a compound annual growth rate (CAGR) of 3.8%, reaching close to US$50.7 billions by 2033. Shipping continues to be a cornerstone of the Indian economy, handling nearly 95 % of the nations trade volume and 70% of trade value.

During FY 2024-25, major Indian ports handled 855 millions tonnes of cargo, reflecting a 4.3% increase over the previous year. This growth was driven by a 10 % rise in container throughput, alongside higher handling of fertilisers (13%), POL cargo (3%), and miscellaneous commodities (31%).

Air Cargo Market

Indias air cargo market also demonstrated strong momentum, reached 3.26 millions tons in 2024. Projections indicate that volumes will expand to 9.56 millions tonnes by 2033, with a robust CAGR of 11.5 % between 2025 and 2033. The sector is benefiting from rapid e-commerce growth, rising demand for express logistics, and extensive infrastructure investments.

The Indian e-commerce industry is expected to grow to US$550 billions by 2035. Tier-2 and tier-3 cities are emerging as the primary growth drivers, with their share of online shoppers rising from 56 % in FY2024 to a projected 64 % by FY2030. This shift is creating higher reliance on air freight for faster deliveries, supported by growing internet penetration, digital payment adoption, and consumer preference for guick logistics solutions.

Policy Support and Infrastructure Development

The National Air Cargo Policy is designed to enhance Indias cargo handling capacity and strengthen its position as a global transhipment hub. Large-scale investments in dedicated air cargo terminals, free trade zones, and multimodal logistics parks are reinforcing the supply chain network. Together with infrastructure expansion, these initiatives are improving efficiency, connectivity, and competitiveness in the air freight sector.

The Government-backed programmes, such as the Sagarmala initiative, continue to provide momentum to Indias maritime growth story. In FY25,962 acres of land were allocated for port-led industrialisation, expected to generate T7,565 crores (US$887.8 millions) and attract future investments worth T68,780 crores (US$8.07 billions).

Outlook

Looking ahead, Indias ports sector is poised for substantial growth, with capacity projected to expand by 500-550 MTPA between FY23and FY28. This expansion will be driven by rising throughput of petroleum, oil and lubricants (POL), coal, and containerised cargo, supported by sustained policy initiatives and increasing trade flows.

Indias Logistics Sector Overview

Indias logistics industry is in the midst of a powerful transformation, aligning with the nations ambition to become a US$5.5 trillion economy by 2027. Logistics has emerged as a strategic enabler of economic integration, competitiveness, and growth, powering everything from manufacturing and agriculture to e-commerce and retail across the countrys vast terrain.

In FY24, the sector generated US$228.4 billions in revenue, ranking among the largest logistics ecosystems in the world. By 2030, it is poised to reach US$357.3 billions, growing at a CAGR of 7.7%. This momentum is fuelled by policy reforms, digital integration, infrastructure upgrades, and surging demand from high-growth sectors.

In 2024, transportation services continued to be the largest revenue contributor, highlighting the indispensable role of Indias extensive road, rail, air, and coastal freight networks in sustaining trade and commerce. However, the momentum is increasingly shifting towards the warehousing and distribution services segment, which has emerged as the most lucrative and fastest-growing vertical.This surge is being fuelled by rising consumer expectations, the rapid expansion of organised retail and e-commerce, and the widespread adoption of advanced inventory and delivery management systems, creating a seamless link between transportation and storage solutions.

Growing Demand for Storage Space

Reflecting this trend, demand for storage space across Indias eight key markets grew by 12% year-on-year, climbing from 50.3 millions sg. ft. in 2023 to 56.4 millions sg. ft. in 2024.

Mumbai led the market with 10.3 millions sg. ft. of transaction volumes, driven largely by the 3PL (Third Party Logistics) sector, which accounted for 43% of total demand. Notably, the sector holds immense future potential, as the warehousing sector holds an additional 233 millions sg. ft. of potential capacity in unutilised land, nearly four times the 2024 transaction volume. Together, these developments signal a deepening integration between Indias transportation infrastructure and warehousing capabilities, setting the stage for a more efficient, responsive, and technology-driven logistics ecosystem.

The Road Ahead

The road ahead is not without its challenges. Fragmentation, infrastructure bottlenecks, high logistics costs, and regulatory complexities continue to constrain operational efficiency. The flagship initiatives, such as the PM Gati Shakti National Master Plan, development of logistics parks, dedicated freight corridors, and the promotion of multimodal transport, are paving the way for a new era of seamless connectivity and operational excellence.

Sustainability is another defining theme in the sectors evolution. With increasing awareness around environmental impact, logistics providers are investing in green supply chains, electric fleets, route optimisation, and smart warehousing solutions to reduce emissions and enhance energy efficiency.

Today, Indias logistics industry stands at a decisive turning point By embracing economic shifts, leveraging technology, and embedding sustainability at its core, the sector is positioned not just to support Indias growth journey but to accelerate it

(Sources: IBEF, Grandview Research)

(https://www.ibef.org/research/case-study/transforming-india-s-logistics-sec-

tor-challenges-and-opportunities)

(https://www.fortuneindia.com/business-news/indias-warehousing-boom-transac- tion-volurnes-hit-564-rnn-sq-ft-in-2024-rnurnbai-leads-the-charge/121112 ) (https://www,g randviewresearch.com/horizon/outlook/logistics-market/india#:-:- text=lndia%20logistics%20market%20hig Mights,terms%20of%20revenue%20 in%202030.)

Demand Catalyst

Growing Economy

As India moves towards becoming a US$10 trillion economy by 2030, demand for efficient logistics is accelerating, calling for a more agile and scalable network.

Rising International Trade

Indias expanding global trade ties are driving demand for modern warehousing, cold storage, and multimodal logistics.

Strong Government Push

Initiatives such as PM Gati Shakti, the National Logistics Policy, Bharatmala, and multimodal logistics parks are expediting infrastructure development, lowering logistics expenses, and strengthening connectivity across India.

Growing E-commerce Penetration

The rapid growth of Indias e-commerce sector is redefining last-mile delivery and warehousing needs. The demand for faster, tech-enabled, and customer-centric logistics solutions is rising sharply, particularly in tier II and tier III cities.

Commercial Vehicle Industry

In FY2025, Indias commercial vehicle (CV) industry demonstrated notable resilience, maintaining stability despite macroeconomic headwinds and evolving sectoral dynamics.

The operating environment was shaped by fluctuating freight demand, elevated financing costs and regional disparities; yet, the industry adapted with agility, underscoring its structural strength.

According to the Federation of Automobile Dealers Associations (FADA), total retail sales of commercial vehicles reached 10,08,623 units in FY2025, reflecting a marginal year-on-year decline of 0.17% from 10,10,324 units in FY2024.This near-flat performance highlights the sectors ability to sustain volumes amid uneven demand conditions across geographies and seg ments.

Segment-wise performance was mixed:

• Light Commercial Vehicles (LCVs), essential for last-mile delivery and e-commerce logistics, registered a modest growth of 0.21%, supported by continued urban consumption and digital retail expansion.

• Medium Commercial Vehicles (MCVs) posted a robust 6.05% increase, driven by steady freight movement in mid-capacity corridors and regional trade flows.

• Heavy Commercial Vehicles (HCVs) declined by 4.07%, reflecting a temporary deceleration in infrastructure-led demand and bulk logistics activity.

Special Purpose Vehicles (SPVs) continued to play a strategic role, particularly in infrastructure and renewable energy projects. Their utility in streamlining asset ownership and project execution reinforces their importance in Indias capital-intensive development agenda.

Looking ahead, the sectors long-term outlook remains positive. Growth will be underpinned by sustained public and private investment in infrastructure, recovery in core industries such as construction and mining and the expansion of retail and

e-commerce networks.

Concurrently, the transition toward cleaner and more efficient technologies, including electric and alternative fuel vehicles, is reshaping the mobility and logistics ecosystems. This shift is supported by progressive policy frameworks and evolving customer expectations, positioning the CV industry as a key enabler of Indias sustainable growth trajectory.

(Source: Cardekho)

(https://trucks.cardekho.com/en/news/detail/india n-commercial-vehicle-retail-in- sights-in-fy25-a-0-17-yoy-sales-decline-2887.html)

Indian Fuelling Station

The Indian fuel station market is poised for significant growth, it is expected to rise from US$13.1 billions in 2024 to US$21.2 billions by 2032, at a CAGR of 5.3%. This growth trajectory is underpinned by multiple structural drivers. The countrys rising energy demand, driven by rapid urbanisation, industrialisation, and increasing vehicle ownership, continues to fuel consumption across both urban and rural areas. At the same time, the transition towards cleaner and more sustainable energy solutions is creating new opportunities, with greater adoption of alternative fuels such as CNG, LNG, and biofuels.

Furthermore, the ongoing expansion of electric vehicle infrastructure, supported by government policies and private sector participation, is reshaping the role of traditional fuel stations into diversified energy hubs. These outlets are increasingly expected to providea mix of conventional fuels, EV charging, and alternative energy solutions, making them critical enablers of Indias evolving mobility ecosystem. With supportive regulations, infrastructure investments, and a dynamic shift in consumer preferences, the Indian fuel station market is well- positioned for steady expansion through the next decade.

(Source: Market research future)

(https://www.marketresearchfuture.com/reports/india-fuel-station-market-21398 )

Company Overview

Accuracy Shipping Limited is a leading integrated logistics and supply chain solutions provider, offering a broad spectrum of services that include multimodal transportation, freight forwarding (sea and air), customs clearance, warehousing, and third-party logistics. Over the years, the Company has strategically diversified its portfolio beyond core logistics, entering the petroleum products segment and automobile dealership operations, thereby building a balanced and resilient business model.

From its origins as a regional logistics operator, Accuracy Shipping has steadily evolved into a pan-India service provider, supported by a strong branch network, advanced warehousing infrastructure, and an owned fleet of vehicles. The Company caters to a wide range of industries including steel, ceramics, textiles, chemicals, and fast-moving consumer goods (FMCG).

On the global front, Accuracy Shipping is actively engaged in international freight forwarding and holds recognition from key regulatory authorities. It is certified by the International Federation of Freight Forwarders Associations, registered with the Federal Maritime Commission of the United States, and recognised as a Multimodal Transport Operator by the Directorate General of Shipping, Government of India.

With a consistent focus on operational efficiency, technology adoption, and customer-centric solutions, Accuracy Shipping Limited continues to strengthen its presence across domestic and international markets, reinforcing its position as a trusted partner in the logistics ecosystem.

Operational Performance

In FY 2024-25, Accuracy Shipping Limited handled 1,02,789 containers (-8,500 per month), compared to 1,15,221 containers (-9,600 per month) in FY 2023-24, marking a 10.8% decline in volumes owing to global trade slowdown and tariff-related disruptions.

Despite this, the Company achieved a 68% increase in average realisation per container, rising from ?40,963 in FY 2023-24 to ?68,859 in FY 2024-25.

This improvement was driven by firming freight rates in the latter part of the year amid global route disruptions.

The higher yield, coupled with a 34% expansion in the customer base, more than offset the dip in volumes, ensuring sustained revenue and margin stability.This underscores the Companys operational resilience and its ability to leverage market volatility through long-term contracts and strategic client relationships.

Financial Performance

In FY 2024-25, Accuracy Shipping Ltd. reported consolidated revenues of approximately T946.1 crores, demonstrating strong year-over-year growth driven by robust operational performance.The Company recorded an operating profit of T63.1 crores, though this reflected a decline compared to the previous fiscal year. Profit before tax stood at ?6.8 crores, while profit after tax was ?4.7 crores, indicating some margin pressures.The earnings per share (EPS) was T0.31.

Despite a challenging market environment, the Company maintained steady cash flows and efficient working capital management.The debt-eguity ratio declined to 0.18x, supported by loan repayments, strengthening the balance sheet. Additionally, the return on net worth improved to 3.79%, reflecting optimum utilisation of long-term contracts. These factors position the Company well for sustainable growth in the competitive shipping and logistics sector.

Key Financial Ratios

1 Particulars	2024-25	2023-24	Y-o-Y Changes (%)	Reason 1
AssetTurnover Ratio	3.19	2.51	27%	Due to Increase in Turnover with increase in new Customer Acguisitions despite challenging Freight Rates
Long Term Debt to Eguity	0.18	0.24	-25%	Due to Repayment of Term Loans
Return on Net Worth	3.79%	0.40%	848%	Margins Increased due to optimum usage of Long-Term Contracts
Net Profit Margin	0.48%	0.07%	586%
Current Ratio	1.36	1.61	-16%	Due to Strategic Investment in Fixed Assets

Human Resource

At Accuracy Shipping Limited, we are committed to attracting, retaining, and nurturing top talent to drive the organisation towards its strategic goals. We foster a work culture that is free from discrimination and bias, ensuring egual opportunities for all. Our Human Resource Development approach goes beyond enhancing employeesorganisational roles · it also seeks to nurture their inner potential, creativity, and latent capabilities. We believe every individual possesses unlimited growth potential, which can be multiplied and channelled effectively through structured and systematic initiatives.

Internal Control and Its Adequacy

The Company has an Internal Control System, commensurate with the size, scale and nature of its operations. The Internal Control function emanates at the Board level, and its scope and authority of the Internal Audit function are well defined.

To maintain objectivity and independence, the Internal Audit function reports to the Chairman of the Audit Committee of the Board & to the executive Chairman and the Managing Director.The Internal Audit Department monitors and evaluates

the efficacy and adeguacy of the internal control system in the Company, its compliance with operating systems, accounting procedures and policies across the Company. Based on the report of the internal audit function, process owners undertake remedial action in their respective areas and thereby strengthen the controls. Significant audit observations and recommendations along with corrective actions thereon are presented to the Audit Committee of the Board.

As regards the operation of internal controls, the majority of these have been built into the internal procedures established by the organisation, which are also documented internally.These include in detail the methodology to be adopted right from transacting bookings, effecting consignment deliveries, etc. and describe the practices to be followed for the smooth operation of the business. Inspection teams are formed at the head office level as well as at the transhipment level and cover the entire branch network of the Company periodically for exhaustive inspection for adherence to the set procedure. Deviation from the laid down procedure is escalated to the Functional heads as well as directly to the Executive Directors.

Risk Management

At our company, proactive risk management is integral to achieving long-term objectives. It safeguards profitability, enhances our competitive position, and ensures financial stability·enabling us to meet our commitments to all stakeholders, including customers.

We view integrity and ethical conduct as core components of risk mitigation. By fostering a culture of transparency and open communication, we encourage employees to identify and report potential risks and their implications proactively.

Our robust risk management framework is designed to systematically identify, assess, and address both internal and

external risks. This structured approach ensures all business activities are evaluated through a risk-focused lens.

Defined processes and clear guidelines support consistent risk governance across the organisation. A comprehensive monitoring and reporting system keeps senior management and the Board well-informed, facilitating timely and effective decision-making. We also strengthened its information technology infrastructure, enabling real-time risk tracking, advanced data analytics, and digitalised reporting systems. Our strong risk culture empowers us to navigate uncertainty with confidence, supporting sustainable value creation for the Company and its stakeholders.

Cautionary Statement

Statements in thisManagement Discussion and Analysisand this Annual Report describing the Companys objectives, projections, estimates, expectations, plans or predictions, or industry conditions or events areforward-looking statementswithin the meaning of applicable securities laws and regulations. Actual results, performance, or achievements could differ materially from those expressed or implied. Several factors could make a significant difference to the Companys operations. These include economic conditions affecting demand and supply, Government regulations and taxation, natural calamities, and so on, over which the Company has no direct control.