Chartered Logistics Ltd Management Discussions

The management of Chartered Logistics Limited presents the analysis of performance of the company for the year 2024-25 and its outlook for the future. The outlook is based on assessment of current business environment and on expectations of future events. The company assumes no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent developments, information or events. The day to day management of the Company is looked by the Executive Directors assisted by a team of competent technical & commercial professionals.

GLOBAL ECONOMY

The global transportation and logistics industry continued its recovery trajectory during FY 2024-25. While the global economy faced headwinds from persistent inflationary pressures, energy price volatility, and geopolitical uncertainties, supply chain efficiencies showed improvements across regions. The logistics sector grew by approximately 3.5% in 2024, supported by increasing trade normalization and the strategic adaptation of supply chain models. However, continued geopolitical conflicts, notably in Europe and the Middle East, as well as climate-related disruptions, posed significant challenges. Advances in digital logistics, automation, and sustainable transportation played a central role in enhancing resilience and operational efficiency globally.

INDIAN ECONOMY

India remained one of the fastest-growing economies globally, with a GDP growth of approximately 6.8% during FY 2024-25. The logistics sector emerged as a key enabler in this growth, buoyed by government-led infrastructure initiatives and a surge in domestic consumption. The rollout of the PM Gati Shakti Master Plan and the implementation of the National Logistics Policy significantly improved connectivity and logistics efficiency. India climbed further in the World Banks Logistics Performance Index, reflecting advancements in multimodal infrastructure, technology integration, and policy support. With the logistics market in India projected to grow at a CAGR of 12.44% till 2032, the industry is well-positioned to capitalize on upcoming economic opportunities.

INDUSTRY STRUCTURE AND DEVELOPMENTS

The Indian logistics industry has been undergoing a major transformation, driven by rapid technological advancements, large-scale infrastructure investments, and evolving regulatory frameworks. The adoption of technologies such as the Internet of Things (IoT), artificial intelligence (AI), blockchain, and advanced data analytics is reshaping logistics operations by enabling real-time tracking, predictive maintenance, and smart warehousing solutions. Companies are increasingly relying on cloud-based systems and digital twins to simulate and improve supply chain performance, reduce delays, and enhance customer satisfaction.

Sustainability is emerging as a cornerstone of the industrys strategic outlook. Environmental, Social, and Governance (ESG) factors are becoming crucial as logistics firms adopt green initiatives, including electric vehicle (EV) fleets, renewable energy integration in warehouses, and carbon offset programs. These efforts not only align with global sustainability goals but also offer cost-efficiency in the long term.

The exponential growth of e-commerce continues to drive innovation in last-mile delivery, warehousing, and fulfillment strategies. Faster delivery expectations have spurred the use of automation, drone technology, and hyperlocal logistics models. In response, third-party logistics (3PL) and fourth-party logistics (4PL) services are expanding rapidly, offering comprehensive and integrated supply chain solutions to diverse sectors.

Government-backed initiatives like Bharatmala, Sagarmala, and dedicated freight corridors are improving multimodal connectivity, integrating air, rail, road, and inland waterways. These projects enhance speed, reduce costs, and increase cargo handling capacity, strengthening Indias position as a global logistics hub.

To meet the demands of this evolving landscape, the logistics workforce is also undergoing a shift. There is a rising emphasis on upskilling and digital literacy, with training programs and partnerships between industry and academic institutions playing a key role in talent development.

In terms of compliance, stricter regulatory norms concerning emissions, digital documentation, and operational safety are compelling companies to adopt advanced governance systems. E-invoicing, real-time GST tracking, and E-way bill management are becoming standard features of logistics operations.

Warehousing infrastructure is being redefined through the rise of smart warehouses. These facilities leverage robotics, automated guided vehicles (AGVs), and AI-based inventory systems to enhance accuracy, reduce human error, and boost throughput. Similarly, digital freight platforms and logistics aggregators are transforming freight booking and load matching by offering improved transparency, efficiency, and pricing.

Cold chain logistics is experiencing accelerated growth, driven by increased demand from sectors such as pharmaceuticals, agriculture, and food processing. Companies are investing in temperature-controlled transportation, smart packaging, and compliance tracking systems to ensure product integrity and expand their market reach.

Overall, the industry is becoming more resilient by redesigning supply chains for flexibility and responsiveness. Learnings from the COVID-19 pandemic and ongoing global trade disruptions have led to increased focus on building redundancies, nearshoring, and implementing real-time risk monitoring frameworks. The coming years promise further integration of technology and sustainability in logistics, paving the way for innovation-led growth and competitive advantage.

REVIEW OF THE BUSINESS OF CHARTERED LOGISTICS LIMITED

Chartered Logistics Limited (CLL), established in 1995, continues to be a trusted and experienced name in the Indian logistics industry. With nearly three decades of operational expertise, the Company has consistently delivered reliable, efficient, and customer-centric logistics solutions across diverse industrial sectors. CLL offers comprehensive services including road transportation, cost and freight solutions, and special warehousing from the point of origin to the final destination.

The Company operates a fleet of approximately 300 owned and attached vehicles, ensuring nationwide coverage and flexibility in catering to varied client requirements. Its clientele spans sectors such as pharmaceuticals, FMCG, cement, power transmission, chemicals, and heavy engineering testament to its ability to meet complex and critical logistics needs.

CLLs business model emphasizes operational efficiency, safety, and compliance. The Company has adopted GPS-enabled tracking systems and real-time delivery updates to ensure transparency and security in cargo movement. Moreover, it is actively exploring green logistics through route optimization and environmentally conscious vehicle upgrades.

Over the past year, the Company has focused on strengthening customer relationships, improving turnaround time, and exploring partnerships to enter high-growth verticals like cold chain logistics and last-mile delivery. With a strategic focus on technology, compliance, and customer service, CLL is well-positioned to expand its footprint and play a key role in Indias fast-growing logistics ecosystem.

REVIEW OF CHARTRED LOGISTICS LIMITEDS PREPAREDNESS AGAINST EMERGING OPPORTUNITIES AND FUTURE OUTLOOK

Chartered Logistics Limited remains agile and future-focused, navigating emerging opportunities and challenges in the logistics sector with strategic foresight. The Company recognizes that evolving consumer expectations, digital transformation, sustainability goals, and macroeconomic shifts are reshaping the logistics landscape.

To prepare for the next wave of growth, CLL has initiated several forward-looking measures. These include embracing digitalization through the deployment of GPS tracking, fleet management systems, and data analytics for route and load optimization. Investments in technology have enabled enhanced visibility, customer responsiveness, and cost efficiency.

With the Government of Indias continued focus on infrastructure modernization under initiatives like PM Gati Shakti and National Logistics Policy, the Company aims to align its operations and service offerings to these national priorities. Additionally, CLL is evaluating potential expansions in warehousing, 3PL, and cold chain logistics to diversify its service portfolio.

In anticipation of regulatory changes and sustainability mandates, CLL has begun assessing cleaner fuel alternatives and optimizing vehicle usage to reduce its carbon footprint. Efforts are also being made to enhance workforce capabilities through training in digital tools and operational best practices.

The Company remains committed to operational excellence, risk mitigation, and customer satisfaction. Through strategic planning, prudent financial management, and proactive compliance, CLL is confident in its ability to leverage emerging opportunities and drive sustained growth in the coming fiscal years.

REVIEW OF OPERATIONAL AND FINANCIAL PERFORMANCE OF THE YEAR 2024-25

During the financial year 2024 25, Chartered Logistics Limited maintained its focus on operational efficiency, cost optimization, and service excellence despite a challenging macroeconomic environment. The Company continued to deliver dependable logistics services across India, supported by its robust fleet network and long-standing relationships with clients in key sectors.

The total income for the year ended 31st March 2025 stood at Rs. 7661.10 Lakhs, compared to Rs. 7163.76 Lakhs in the previous financial year. The Company recorded a profit after tax of Rs.123.63 Lakhs reflecting improved cost controls and operational optimization. This marks a positive trajectory from the previous years PAT of Rs. 66.73 Lakhs.

RISKS IN LOGISTICS SECTOR

The logistics sector, though vital to the economy, faces a broad range of risks that can impact its stability and profitability. One of the primary challenges is the volatility of fuel prices, which directly affects operating costs and profit margins. Inflationary pressures and fluctuations in interest and exchange rates also create an unpredictable business environment. Geopolitical tensions, trade policy shifts, and conflicts particularly in global supply chain hubs can lead to rerouting of shipments, higher costs, and supply chain disruptions.

In India, infrastructure limitations such as congested highways, underdeveloped rural connectivity, and limited multimodal integration continue to hinder logistics efficiency. These infrastructure gaps not only cause delays but also increase maintenance costs and reduce service quality. Furthermore, the rising frequency of extreme weather events ranging from floods and cyclones to heatwaves poses significant environmental risks, disrupting operations and damaging assets.

Digital transformation, while offering numerous operational benefits, has introduced its own set of risks. Increased reliance on technology makes logistics firms vulnerable to cyber threats, including hacking, ransomware, and data breaches. These cyber incidents can compromise critical business systems, disrupt delivery timelines, and harm stakeholder trust. Additionally, the regulatory landscape is evolving rapidly, with stricter norms around emissions, data protection, and transport safety compliance. Non-compliance can lead to financial penalties, reputational damage, and operational restrictions.

The sector also faces an acute shortage of skilled manpower. The lack of trained drivers, warehouse operators, and logistics managers affects service scalability and reliability. Moreover, the growing presence of tech-enabled logistics startups is intensifying competitive pressures, compelling traditional players to continuously innovate to retain market share.

Taken together, these risks necessitate a proactive and integrated risk management approach to ensure resilience, compliance, and sustained growth.

RISK MITIGATION STRATEGY OF THE COMPANY

1. Your Company offers services in all aspects of logistics and supply chain management to a diverse range of industries. Your company keeps a close watch on the economic environment and timely actions are taken accordingly. These measures help us to mitigate the industry risks. Also, our internal control systems and processes are constantly reviewed and revamped as per industry best practices.

2. Your company continuously efforts to enhance the brand image by focusing on R&D, quality, Cost, timely delivery and customer service. By introducing new services commensurate with customer demands, your company plans to mitigate the risks so involved.

3. We have well defined appraisal system in place. All high-performance employees are given periodical trainings and duly rewarded for their performance.

4. All vehicles are insured against loss or damage due to accident. We have installed Vehicle tracking System devices for monitoring all our vehicles 24/7 to ensure safety of cargo & vehicles.

5. We constantly keeps their eyes on the Money market to ensure no opportunity of low cost finance is lost and bring down the cost of finance to lowest possible level.

INDIAN LOGISTICS INDUSTRY: OUTLOOK AND OPPORTUNITIES

The Indian logistics industry stands at a pivotal point, poised for significant expansion driven by economic momentum, government support, and rapid digital transformation. Infrastructure development projects under PM Gati Shakti, Bharatmala, and Sagarmala have laid a strong foundation for integrated multimodal connectivity. These projects are expected to improve freight movement, reduce logistics costs, and enhance supply chain efficiency across the country.

Technology continues to reshape the logistics landscape. The adoption of IoT, AI, machine learning, and blockchain is streamlining operations, improving delivery accuracy, and enabling real-time visibility across supply chains. The increasing shift toward digital freight platforms and warehouse automation is transforming traditional logistics into more agile, tech-driven systems.

Indias booming e-commerce sector has opened vast opportunities for logistics providers, especially in last-mile delivery and cold chain logistics. The growing need for fast, temperature-sensitive, and reliable services has led to increased investments in smart warehousing, refrigerated transport, and 3PL/4PL capabilities.

Sustainability is becoming a strategic priority, with companies focusing on carbon reduction through route optimization, electric vehicle fleets, and energy-efficient infrastructure. Regulatory frameworks are also evolving to encourage cleaner and more transparent logistics practices.

Overall, the Indian logistics sector is expected to maintain a robust growth trajectory, with a projected CAGR of 12.44% from 2024 to 2032. Companies that embrace innovation, compliance, and sustainability will be best positioned to capture emerging opportunities in the evolving logistics landscape.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Your company has an adequate system of internal controls commensurate with its size & nature of operations, along with well-defined organisation structure & documented policy guidelines & procedures, predefined delegation of authority covering all corporate functions and all operating units. These internal controls are designed to provide reasonable assurance regarding the effectiveness and efficiency of operations, the adequacy of protecting your Companies assets from unauthorized use or losses, the reliability of financial controls and compliance with applicable laws and regulations.

Adequate internal control measures are in the form of various policies & procedures issued by the Management covering all critical and important activities viz., Contract Management, Operations, Procurement, Finance, Human Resources, Safety, etc. These policies & procedures are updated from time to time and compliance is monitored by Internal Audit Function. Your Company has continued its efforts to align all its processes and controls with global and industry best practices.

The Audit Committee of the Board oversees the adequacy of the internal control environment through regular reviews of the audit findings and monitoring implementations of internal audit recommendations through the action taken reports submitted to them. A gist of the significant features of the internal controls are:

Your Company has established and maintained a framework of internal financial controls, implemented adequate procedures and compliance systems, which provide reasonable assurance regarding reliability of financial reporting and preparation of financial statements.

The Audit Committee of the Board of Directors, comprising of independent directors and functional, regularly reviews the audit plans, significant audit findings, adequacy of internal financial control frame work and test reports, implementations of internal audit recommendations, compliance with accounting standards as well as reasons for changes in accounting policies and practices, if any;

A well-established and independent Internal Audit team consisting of professionally qualified accountants and functional specialists who are empowered to examine/audit the adequacy, relevance and effectiveness of the control systems, test the key controls as per Internal financial controls, compliance with policies, plans and statutory requirements;

Continual programmes to reinforce the Code of Business Conduct & Ethics is done regularly across the organisation.

Anti-fraud programmes including whistle blower mechanisms are operative across the Company.

HUMAN RESOURCES

The Company believes that the employees are central as well as critical to the Company as they are the real assets of the organization. It recognizes people as its most valuable asset and therefore it lays due emphasis on its overall training and development. The Companys HR policy aims to establish and build a high performing organization, where each individual is motivated to perform at the fullest capacity to contribute towards self-development and thereby achieve individual excellence along with achieving the departmental objectives. The employee relationship with the company remained harmonious through the year.

CAUTIONARY STATEMENT

Some of the statement in the report describing the Companys objectives, projections, estimates and expectations may be ‘forward-looking statement within the meaning of applicable securities laws and regulations. The forward-looking statement have as their basic certain assumptions and expectations about behaviour or outcome of future events and/or economic variables. Actual results may vary from those expressed or implied depending on these economic conditions, demand/supply scenario, price conditions in which the Company operates changes in the Government Policies, changes in fiscal laws and other incidental factors. Readers are cautioned not to place undue reliance on the forward looking statements.