balaji shipping logistics ltd Management discussions

BALAJI SHIPPING AND LOGISTICS LIMITED ANNUAL REPORT 2007-2008 MANAGEMENT DISCUSSION AND ANALYSIS PERFORMANCE REVIEW: During the year under review, revenue account shows a profit of Rs.6,07,097 before Depriciation and Tax. BUSINESS PROSPECTS: Your company strives to continuously understand the implication to its business of the various chages, as also the impact of altered economic policies on international developments. During the year under review your Company has undertaken various shipping activities to augument its revenue and Income since CFS Project is slowed down due to acquisition of Land in and a bound Navi Mumbai for SEZ. FUTURE PROSPECTS: Keeping in line with the Global Economic Scenario, the tempo of Indian Economy is also negative this year. The galloping oil prices internationally, coupled with series of negative news from the US Economy has dampened the overall sentiment world over. What was initially considered as a fair correction on the Indian Bourses, has turned night- marish for public at large and even some leading FIIs whose Global operations have also suffered very badly and the likes of Lehman Bros. etc. have even declared bankruptcy, as we all know. Despite such gloomy scenario, your Company has progressed ahead with its growth in existing business activities such as Shipping Services including Shipping Agency, Chartering etc. I am glad to announce that due to the growth in the business activities on China - India sector, the Directors of the Company have decided to establish a representative office at Shanghai, the formalities for which have already begun. One of the main activities which will be undertaken on this Sector is also Freight Forwarding by Containers for which the Company has joined hands with VICTORY MARITIME SERVICES (CHINA) LTD. - one of the leading Freight Forwarders with branches all over China. This partnership between our two organisations is expected to grow rapidly, adding to the top line and the bottom line of your Company in the coming years. Such container traffic will be a perfect fit for our CFS at Nhava Sheva whose progress has been slowed down due to various factors mentioned above as well as (starting with) due to Reliance Industrys SEZ Project in this region, proving a hiderance to our / others CFS Project/s, as reported earlier. Door-to Door ligistics of various large Projects on China - India sector are in the pipeline which include Reliance Powers Sasan power project, Pipavav Ports Project in Pipavav - to name a few. The Chinese partners for such Projects are leading Ship Owners such as Hengxin Shipping, Hanssy Shipping, CPM, HTM, Tranvast, Transfar, (all Chinese Co.s) etc. Despite having faced various ups and downs during the last financial year, your Company has made a modest profit but most importantly laid a strong foundation for future growth. Thus the overall prospects for your Companys existing and future activities, remain very positive.