Cargotrans Marit Management Discussions


The maritime industry plays a vital role in the economic development of many countries, particularly those with a strong export-based economy. It is a key mode of transportation for both passengers and cargo, and is essential for connecting remote and isolated communities to the rest of the world. It is a vital component of the global transportation network.

It generates economic activity and employment in both the shipping and port sectors. It is also a major contributor to the economies of many coastal and island nations. Along with that Navies and coast guards around the world use ships to protect their countries territorial waters and to safeguard international trade routes.

The vital role of the Maritime Industry in the World Economy the maritime sector makes considerable contributions to economies all over the world. In some countries, this industry forms the foundation of those countries economic, growth and development. According to the United Nations Conference on Trade and Development (UNCTAD), the value of international maritime trade is expected to increase by around 3.4% at the conclusion of a five-year period which will end in 2024.

India is the 16th largest maritime country in the world. Indian Maritime Sector contributes to 95% of Indias trade by volume and 70% by value. India is the 3rd largest globally in terms of ship recycling by tonnage.

The Maritime India Vision 2030 has identified over 150 initiatives to boost the Indian maritime sector. The Vision 2030 was launched by Honble Prime Minister of India in March 2021. It is drafted after significant consultation with over 350 public and private stakeholders comprising of ports, shipyards, inland waterways, trade bodies and associations, and legal experts. The vision serves as a blueprint to achieve an accelerated and coordinated development of Indias diverse maritime sector, comprehensively identifying over 150 initiatives covering all facets of the countrys maritime sector.


• Enhancing the Functionality of Private Ports:

With the rise in imports of crude oil, coal, and containerized goods, public ports face a challenging situation, which presents an opportunity for private docks to step up and fulfil the additional demand from significant ports. As a result, private ports are increasing their capacity to meet projected future demand.

• Government Initiatives:

The Indian Government has also taken initiatives to boost the countrys maritime sector through the Maritime India Vision (MIV) 2030. The vision was launched by the Honourable Prime Miister, Shri Narendra Modi, in March 2021. It was developed in consultation with over 350 public and private stakeholders. These stakeholders

included ports, shipyards, inland waterways, trade bodies, associations, and legal experts. It outlines over 150 initiatives to accelerate and coordinate the comprehensive development of Indias diverse maritime sector.

• Digitalisation of Operations:

The shipping industry is embracing technological advancements, such as automation, big data analytics, and artificial intelligence to improve efficiency, accuracy reliability, reduce costs, and enhance safety, presenting opportunities for companies to adopt new technologies and stay competitive.

• Environmental Regulations:

Governments and international organizations are introducing regulations to reduce emissions and promote sustainability in the shipping industry, offering prospects for companies to invest in eco-friendly technologies and solutions.

• Emerging Markets:

Emerging markets, such as China, India, Middle East and Southeast Asia are experiencing rapid economic growth and increasing demand for goods, creating opportunities for shipping companies to expand their operations and tap into new markets.

• Infrastructure Development:

Developing new ports, terminals, and other infrastructure projects presents opportunities for shipping companies to expand their operations and improve efficiency.


• Indian Ship Repair Industry:

Indian dry docks face difficulty due to the shortage of ports with ship repair facilities, high funding costs, ship spares, and technical challenges.

• Rising Costs of Operation:

Rising input costs, inflation, and poor market conditions can lead to higher operating costs, hampering supply chain management and mobilisation.

• International Disputes and Regulatory Policies:

Changes in regulatory policies can hamper mobilisation and supply chains, requiring alternate dispute resolution options to mitigate such risks.

• Cyber security Risks:

Increased reliance on digitisation and automation has brought along a set of cyber threats and challenges, requiring a cyber risk management system to identify and respond to these challenges efficiently.

• Shortage of Trained Workforce and Competent Seafarers:

The industry faces a shortage of executives with technical experience and officers at the managerial level, with demand exceeding supply.

• Geopolitical Tensions and Trade Sanctions:

Political tensions and trade sanctions can lead to increased shipping costs, disruption of global trade, and financial risks for all parties involved. This can include financial institutions, shipowners, charterers, suppliers, insurers, ports, and cargo owners.


• Infrastructure:

Poor infrastructure, such as inadequate port facilities or underdeveloped transportation networks, can cause delays and disruptions to business operations. It may also increase transportation costs and affect the delivery of goods and services.

• Crew Changes:

Due to the Covid-19 pandemic, travel restrictions and border closures resulted in seafarers being stranded on board ships for extended periods. This increased the risk to their mental and physical health, which may also impact the availability of skilled workers and lead to additional costs for your Company.

• Trade Regulations:

Unfavourable and differentiated Government regulations can create hurdles for building infrastructure, and may limit the scope of business opportunities. Strict regulatory policies may significantly impact coastal maritime operations, which could affect port traffic and trade volume in particular.

• Surveys, Inspections, and Servicing:

Delays in carrying out surveys, inspections, and maintenance of ships due to technician shortages and social distancing measures at shipyards, can result in operational disruptions, downtime, and additional costs. This can also affect the overall safety and efficiency of the ship, which may lead to increased risks for the crew and cargo.

• Security Risks:

Piracy and armed robberies in Southeast Asia and West Africa pose a growing threat to the industry. HUMAN RESOURCE MANAGEMENT:

Your Company is committed to creating a work environment that attracts and retains top talent. Its human resource management efforts are focused on providing employees with opportunities for growth and development, recognizing and rewarding their contributions, and fostering a culture of collaboration and teamwork.


Your Company values diversity and inclusion in the workplace, and is committed to creating a safe and inclusive environment for all employees. Your Company provides all employees equal opportunities regardless of gender, age, race, religion, or nationality, and strives to create a culture of respect and inclusion.

Employee Engagement and Recognition:

Your Company believes in engaging employees and recognising their contributions to the organisation. It organizes various employee engagement initiatives, such as teambuilding activities, sports events, and cultural events to promote teamwork and camaraderie among employees.

Training and Development Programmes:

Your Company understands the importance of training and development in enhancing employee skills and productivity and hence provides various inhouse and external skill-based / behavioural training programmes for its employees. Further, your Company encourages its key staff to pursue certifications from renowned business schools in India to enhance their competencies.

Performance Appraisal and Feedback System:

Your Company has implemented a performance appraisal and feedback system to assess employee performance and provide constructive feedback for improvement. This system helps the employees to understand their strengths and areas of improvement, enabling them to enhance their skills and achieve their career goals.

Work-Life Balance Initiatives:

Your Company recognises the importance of work-life balance in maintaining employee well-being and productivity. Your Company provides various work-life balance initiatives, such as work from home, flexible work arrangements, telecommuting, and employee assistance programmes to support employees in managing their personal and professional lives.

Support for Family on Untimely Demise of Staff:

Your Company has adopted a policy at the group level to provide support to families in the event of an employees untimely demise. This support includes financial assistance and counselling services for the employees family.


Your Company internal control systems commensurate with the nature of its business, size, and complexity of its operations. Your Company ensures that its internal controls are tested and certified by statutory and internal auditors, as well as key business areas, on a routine basis.

Through an internal audit system, Your Company evaluates and tests the effectiveness of controls, and assesses the risks and business processes involved. This is carried out at regular intervals and involves benchmarking your Companys controls with industry best practices to ensure that they are up-to-date and effective.

The internal auditor makes significant observations and recommendations for improvement, which are reported to the Audit Committee. The Audit Committee is responsible for reviewing the adequacy and effectiveness of Your Company internal control environment.

It also monitors the implementation of audit recommendations, particularly those that relate to strengthening risk management policies and systems. Your Company ensures its internal control environment is robust, effective, and aligned with best practices in the industry. This ultimately helps in managing risks and smooth functioning of the business.

Details of significant changes in Key Financial Ratios are given below:


2022-23 2021-22 Change % Reason for Change

Current Ratio

2.86 2.98 3.98 --

Operating Profit Margin %

0.04 0.04 (8.50) --

Net Profit Margin %

0.03 0.02 (14.27) --

Debtors Turnover

9.12 13.01 (29.93)

The reporting year has been overall progressive for the company due to proper planning and favorable economic scenario.

Interest Service Coverage Ratio

84.22 15.81 432.56

Debt Equity Ratio

0.51 1.02 50.34

Return on Net Worth %

0.16 0.40 59.31

Inventory Turnover

Not Applicable

Disclosure of Accounting Treatment:

The Company has followed the Accounting Standards (AS) for drawing-up its accounts as prescribed by the Institute of Chartered Accountants of India, in the preparation of financial statements. There are no audit qualifications in the Companys financial statements for the year under review.


The Company has complied with all the statutory requirements. A declaration regarding compliance of the provisions of the various statutes is also made by the Chairman and Managing Director at each Board Meeting. The Company ensures compliance of the ROC, SEBI Regulations.


Outlook for future are estimates based on certain assumptions and expectations of future events, eco - political and other developments across the country, the company cannot guarantee that these are accurate or will be realized. Statements in Management Discussion and Analysis describing the Companys objectives, expectations or predictions may be forward-looking within the meaning of applicable securities

law and regulations. The companys actual results, performance or achievements could thus differ from those projected in any forward-looking statements.


Statements in this report describing your Companys objectives, projections, estimates, and expectations may be ‘forward-looking statements, within the meaning of applicable laws and regulations, based on the beliefs of Companies Management. Your Companys current views concerning future events are subject to risks and uncertainties. Many factors could cause the actual result to be materially different from those projected in this report, including changes in general economic and business conditions, changes in currency exchange rates and interest rates, the introduction of competing services, a lack of acceptance of new services, and changes in business strategy.


Place: Gandhidham



Date: September 04, 2023

CHAIRMAN DIN: 05211513