Dynamic Services Management Discussions

Managements discussion and analysis of the financial condition and results of operations include forward looking statements based on certain assumptions and expectations of future events. The Company cannot assure that these assumptions and expectations are accurate. Although the Management has considered future risks as part of the discussions, future uncertainties are not limited to Management perceptions.

1. Review of Indian Economy:

India has emerged as the fastest-growing major economy in the world and is expected to be one of the top three economic powers in the world over the next 10-15 years, backed by its robust democracy and strong partnerships. Indias nominal gross domestic product (GDP) at current prices is estimated to be at Rs. 232.15 trillion (US$ 3.12 trillion) in FY22. India is the third- largest unicorn base in the world with over 100 unicorns with a total valuation of US$ 332.7 billion. India needs to increase its rate of employment growth and create 90 million non-farm jobs between 2023 and 2030s, for productivity and economic growth according to McKinsey Global Institute. The net employment rate needs to grow by 1.5% per year from 2023 to 2030 to achieve 8-8.5% GDP growth between 2023 and 2030. According to data from the Department of Economic Affairs, as of March, 2023, foreign exchange reserves in India reached the US$ 578.4 billion mark. To cushion rupee depreciation, RBI has been intervening in the forex market via both spot and forward positions.

2. Industry Structure and developments:

Services exports comprise a major part of the total export from India. The services sector had targeted USD 300 billion but accomplished USD 322.72 billion. Buoyed by a significant jump in exports during 2022-23, Services Export Promotion Council (SEPC) said the healthy growth trend will continue and shipments are expected to reach up to USD 400 billion this fiscal i.e. 2023-24. During 2022-23, the countrys services exports rose by 42 per cent to USD 322.72 billion from USD 254 billion in 2021-22, according to provisional data from the commerce ministry.

3. Strength, Opportunities, Threats


? Established operations and proven track record ? Quality Assurance and Standards ? Experienced Management Team ? Satisfied customer with quality and service ? Smooth flow of operations ? Strong business model


? Potential to provide other value-added services ? Expanding new geographical area ? Opportunities in Indian Market

? Government thrust for growth in Indian Economy will boost the Services and logistics Industry.


? Increase Competition from Big Players ? Change in Government Policies ? Rising labour wages ? Margins may be constrained in the future

? There are no entry barriers in our industry which puts us to the threat of competition from new entrants.

4. Segment Wise - Product wise performance:

During the year under review, the Company operates into the different segments which are Transportation, Manpower & Merchandise Cleaning Charges and sales & Supply of goods.

Details of Segment wise Revenue of the Company:

Transportation: The Total Revenue from Transportation is Rs. 55.68/- Lakh Manpower & Merchandise Cleaning Charges: The Total Revenue from Manpower & Merchandise Cleaning Charges is Rs. 4612.70/- Lakh Sales & Supply of goods: The Total Revenue from Sales & Supply of goods is Rs. 2643.37/- Lakh

5. Outlook:

The Continual growth in the Indian sector is necessary to give necessary support to the industry. The company is making all efforts to accelerate the growth of its business. It expects to improve its position in the market by focusing in the technologically advanced and more profitable market segment and working aggressively in the area of productivity, efficiency and cost reduction.

6. Risks and Concerns

The Industry is exposed to the following risk and concerns:

Political instability or a change in economic liberalization and deregulation policies could seriously harm business and economic conditions in India generally and our business in particular.

The Government of India has traditionally exercised and continues to exercise influence over many aspects of the economy. Our business and the market price and liquidity of our Equity Shares may be affected by interest rates, changes in Government policy, taxation, social and civil unrest and other political, economic or other developments in or affecting India. The rate of economic liberalization could change, and specific laws and policies affecting the information technology sector, foreign investment and other matters affecting investment in our securities could change as well. Any significant change in such liberalization and deregulation policies could adversely affect business and economic conditions in India, generally, and our business, prospects, financial condition and results of operations, in particular.

Uncertain Demand:

Aggregately, economic volatility and cyclical demand cause fluctuations in production. On a more granular level, consumer preference can cause spikes in demand for an individual products or company. Efficient lean capabilities must be in place to keep inventory aligned with demand.

We require high working capital for our smooth day to day operations of business and any discontinuance or our inability to acquire adequate working capital timely and on favourable terms may have an adverse effect on our operations, profitability and growth prospects.

Our business demands substantial funds towards working capital requirements. In case there are insufficient cash flows to meet our working capital requirement or we are unable to arrange the same from other sources or there are delays in disbursement of arranged funds, or we are unable to procure funds on favourable terms, it may result into our inability to finance our working capital needs on a timely basis which may have an adverse effect on our operations, profitability and growth prospects.

We require certain approvals and licenses in the ordinary course of business and are required to comply with certain rules and regulations to operate our business, and the failure to obtain, retain and renew such approvals and licenses in timely manner or comply with such rules and regulations or at all may adversely affect our operations.

We require several statutory and regulatory permits, licenses and approvals to operate our business. Many of these approvals are granted for fixed periods of time and need renewal from time to time. Non-renewal of the said permits and licenses would adversely affect our

Companys operations, thereby having a material adverse effect on our business, results of operations and financial condition. There can be no assurance that the relevant authorities will issue any of such permits or approvals in the time-frame anticipated by us or at all. Further, some of our permits, licenses and approvals are subject to several conditions and we cannot provide any assurance that we will be able to continuously meet such conditions or be able to prove compliance with such conditions to the statutory authorities, which may lead to the cancellation, revocation or suspension of relevant permits, licenses or approvals. Any failure by us to apply in time, to renew, maintain or obtain the required permits, licenses or approvals, or the cancellation, suspension or revocation of any of the permits, licenses or approvals may result in the interruption of our operations and may have a material adverse effect on the business.

7. Internal Control systems and its adequacy

The Company has an effective and reliable internal control system commensurate with the size of its operations. At the same time, it adheres to local statutory requirements for orderly and efficient conduct of business, safeguarding of assets, the detection and prevention of frauds and errors, adequacy and completeness of accounting records and timely preparation of reliable financial information. The efficacy of the internal checks and control systems is validated by self-audits and internal as well as statutory auditors.

8. Discussion on financial performance of the Company with respect to operational performance.

Share Capital

The Paid-up Share Capital of the Company as on 31st March, 2023 is Rs. 13,51,81,920/- (Rupees Thirteen Crore Fifty-One Lakh Eighty-One Thousand Nine Hundred and Twenty only) divided into 1,35,18,192 (One Crore Thirty-Five Lakh Eighteen Thousand One Hundred and Ninety- Two) Equity Shares of Rs. 10 /- (Rupees Ten only).

Reserves and Surplus

The reserves and surplus are Rs. 4170.15 Lakh as on the end of the current year.

Total Income

During the year under consideration, the total income was Rs. 8270.96 Lakh as against Rs. 7210.3 Lakh during the previous year.

9. Material developments in Human resources / industrial Relations front, including number of people employed

Human resource is an asset to any industry. We believe that our employees are the key to the success of our business and hence we have a structured organization plan to take care of the growth and motivation aspects of our team. Our manpower is a prudent mix of experienced and young personnel which gives us the dual advantage of stability and growth. Our work processes and skilled resources together with our strong management team have enabled us to successfully implement our growth plans. The details of department wise number of employees are given here below:

The total strength of manpower as on 31/03/2023 is 1896 employees. The number of employees is dependent on the number of projects in hand as our work is labour intensive involving deployment of Manpower for Mechanized Cleaning, Catering, Housekeeping, Conservancy Service, Security Service, Catering Services, Contractual services, Suppling Goods & Services, Logistics and other related services.

10. Key Financial Ratios:


2023 2022 Change
Current Ratio 2.60 2.03 0.57
Debt Equity Ratio 0.33 0.51 (0.18)
Return on Equity Ratio 0.22 0.06 0.16
Inventory Turnover Ratio 30.56 35.39 (4.83)
Trade Receivable Turnover Ratio 1.46 1.30 0.16
Trade Payable Turnover Ratio 0.53 1.18 (0.65)
Net Capital Turnover Ratio 1.68 2.20 (0.52)
Net Profit Ratio 13.23 3.02 10.21
Return on Capital Employed 0.20 0.08 0.12

11. Cautionary Statement

This report contains forward-looking statements based on the perceptions of the Company and the data and information available with the company. The company does not and cannot guarantee the accuracy of various assumptions underlying such statements and they reflect

Companys current views of the future events and are subject to risks and uncertainties. Many factors like change in general economic conditions, amongst others, could cause actual results to be materially different.

Place: Kolkata

For and on behalf of the Board of Directors of

Date: 24.08.2023


SD/- SD/-
Jugal Kishore Bhagat Rekha Bhagat
(Managing Director) (Director)
DIN: 02218545 DIN: 03564763