Arvind & Company Shipping Agencies Ltd Management Discussions

Your Company operates within the dynamic and evolving landscape of the shipping and hospitality industries. These sectors, while offering strong potential for growth and innovation, also encounter a range of external challenges that influence operational performance and strategic direction.

Opportunities

Technological Advancements

The increasing adoption of automation, artificial intelligence, Internet of Things (IoT), and data analytics is transforming operational models. These technologies are enhancing safety, improving fleet efficiency, and optimizing cost structures in the shipping business, while enabling seamless guest experiences and operational efficiencies in hospitality.

Strategic Business Diversification

Expanding into new geographical markets, introducing integrated logistics services, and offering tailored customer solutions are enabling the Company to strengthen its revenue streams. In hospitality, the development of regionally targeted offerings and digital booking platforms enhances market reach.

Growth in Ecommerce and Logistics Demand

The continued expansion of ecommerce has resulted in increased demand for timely, reliable, and costeffective shipping and logistics services, particularly in lastmile delivery and regional distribution.

Rise in Domestic Tourism

The growth of domestic travel, supported by improved infrastructure and governmentled tourism initiatives, is creating opportunities for hospitality expansion, especially in Tier II and III cities and industrial clusters

Focus on Sustainability and EcoFriendly Practices

The growing emphasis on sustainability, both regulatory and consumerdriven, has led to the adoption of cleaner fuels, energyefficient operations, and environmentally conscious construction practices. This provides scope for longterm cost savings and improved brand reputation in both core verticals.

Threats and Challenges

Escalating Operational Costs

Volatility in fuel prices, increased manpower costs, and heightened maintenance expenses are putting pressure on profit margins in both business verticals.

Supply Chain and Global Disruptions

Disruptions caused by geopolitical tensions, trade restrictions, or natural calamities can impact timely availability of materials, crew movement, and guest supplies, thereby affecting service delivery and profitability.

Cybersecurity and Data Protection Risks

With increasing digitization, the risk of cyber threats, data breaches, and system downtime has risen. This poses a significant threat to operational continuity, customer trust, and regulatory compliance.

Market Competition and Price Pressure

The entry of new market players and expansion by existing companies in both the shipping and hospitality domains has intensified competition, leading to pricing pressures and the need for continuous innovation.

Impact of Climate Change and Environmental Factors

Unpredictable weather patterns, sealevel rise, and extreme climate events can disrupt marine operations, delay charters, and adversely impact hotel occupancy and operations.

(? in Lakh)

Your Company, established in 1987, began its journey as a shipping and forwarding services provider and has since evolved into a diversified enterprise with a strong presence in both barge chartering and hospitality. This transformation has been driven by deep industry insight, adaptability, and an opportunityfocused business strategy.

Looking ahead, your Company remains committed to consolidating and expanding its market position through:

Continued investment in barge fleet expansion and hotel infrastructure upgrades,

Enhancement of human capital through training and operational excellence,

Exploration of strategic partnerships, alliances, or acquisitions to diversify service offerings,

Implementation of technologydriven efficiencies across both verticals.

Our integrated approach, leveraging operational synergies between both sectors, provides a strong foundation for longterm value creation. While we remain optimistic about growth, your Company continues to actively monitor potential external risks including fuel price volatility, climaterelated disruptions, and regulatory changes. Proactive measures have been instituted to strengthen our internal controls, disaster preparedness, and risk management frameworks.

Your Company is wellpositioned to capitalize on the evolving landscape, with a dualsector focus that enhances resilience and underpins sustainable performance in the years to come.

Your Company has instituted a robust and comprehensive framework of internal financial controls that is commensurate with the nature, scale, and complexity of its operations. This framework is designed to provide reasonable assurance regarding the reliability of financial reporting, the safeguarding of assets, the prevention and detection of frauds and errors, and the compliance with applicable laws, regulations, and internal policies.

The internal financial control systems are integrated with the Companys business processes and are continuously monitored and upgraded in line with changing business needs and evolving regulatory requirements. These controls ensure orderly and efficient conduct of operations, including adherence to management policies, accurate recording of transactions, and timely preparation of reliable financial statements.

Further, the Audit Committee reviews the adequacy and effectiveness of the internal control environment and the risk management systems at regular intervals, ensuring that identified gaps, if any, are addressed promptly and effectively. Your Company continues to strengthen its internal financial control mechanisms through adoption of best practices, use of technology, and periodic training of employees, thereby reinforcing accountability and transparency across all levels of operations.

Based on the internal audit evaluations and reviews carried out by the management and the Audit Committee during the year under review, no significant deficiencies or material weaknesses in the design or operation of internal financial controls were observed. The Board is of the opinion that the Company has in place adequate internal financial controls with reference to its financial statements.

Your Company strongly believes that its employees are its most valuable asset and the cornerstone of its sustained growth. A key focus area continues to be the development of a performanceoriented, competencydriven culture built on the pillars of accountability, transparency, and continuous improvement.

During the year under review, your Company undertook several human resource initiatives aimed at enhancing organizational effectiveness and workforce capability. These included structured training programs, both inhouse and external, designed to strengthen domain expertise, develop leadership skills, and promote crossfunctional efficiency. Employees at all levels were encouraged to participate in workshops and sessions aligned with industry trends, regulatory changes, and operational best practices.

The Company has also implemented employee engagement measures that foster a collaborative and motivated work environment. Regular performance reviews, open communication channels, and recognitions of highperforming employees are among the many steps taken to cultivate a highperformance culture and ensure alignment with business objectives.

As on March 31, 2025, the Company had a total of six (6) fulltime employees. Despite operating with a lean workforce, the Company continues to maintain operational agility and functional accountability through streamlined systems and clear role definitions.

Industrial relations during the financial year remained cordial and harmonious. The management remains committed to maintaining a positive and productive work environment built on mutual respect and cooperation.

Going forward, the Company aims to further strengthen its human capital through strategic talent acquisition, upskilling initiatives, and succession planning to support its growth aspirations.

Your Company does not undertake any obligation to publicly update or revise any forwardlooking statements in light of future events, developments, or new information, except as may be required by applicable law. Readers are advised not to place undue reliance on these statements and to exercise caution in interpreting them.

Registered office: For and on behalf of Board of Directors

701 To 702, City Point, 5th Floor, Arvind Port and Infra Limited

Opp. Town Hall, Jamnagar 361001, CIN: L61200GJ1987PLC009944

Gujarat

Sd/ Sd/

Arvindbhai Kantilal Shah Vinit Arvind Shah

Place: Jamnagar Chairman cum Managing Director Whole time Director

Date: August 18, 2025 DIN: 00094647 DIN: 00094898