OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS.
The following discussion and analysis of our financial condition and results of operations for the financial year ended on 2025, 2024 and 2023 is based on, and should be read in conjunction with, our Restated Financial Statements, including the schedules, notes and significant accounting policies thereto, included in the chapter titled “Restated Financial Statements” beginning on page 160 of this Draft Red Herring Prospectus. Our Restated Financial Statements have been derived from our audited financial statements and restated in accordance with the SEBI ICDR Regulations and the ICAI Guidance Note.
You should read the following discussion of our financial condition and results of operations together with our restated financial statements included in this Draft Red Herring Prospectus. You should also read the section titled “Risk Factors ” beginning on page 28 of this Draft Red Herring Prospectus, which discusses a number of factors, risks and contingencies that could affect our financial condition and results of operations. Our fiscal year ends on March 31 of each year, so all references to a particular fiscal year are to the twelve-month period ended March 31 of that year.
In this section, unless the context otherwise requires, any reference to “we ”, “us ” or “our ” refers to Global Ocean Logistic India Limited, our Company. Unless otherwise indicated, financial information included herein are based on our “Restated Financial Statements” for the Fiscal ended on 2025, 2024 and 2023 included in this Draft Red Herring Prospectus beginning on page 160 of this Draft Red Herring Prospectus.
Note: Statement in the Management Discussion and Analysis Report describing our objectives, outlook, estimates, expectations or prediction may be “Forward Looking Statements” within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to our operations include, among others, economic conditions affecting demand/supply and price conditions in domestic and overseas market in which we operate, changes in Government Regulations, Tax Laws and other Statutes and incidental factors.
BUSINESS OVERVIEW
We are a freight forwarding company having multi modal logistics solutions. We have logistics services with diverse capabilities across verticals include (i) shipping/coastal transportation including ODC (Over Dimensional Cargo) (“Ocean Freight Forwarding”); (ii) road/rail transportation (“Transport”); (iii) air cargo (“Air Freight Forwarding”); (iv) Container Freight Station solution (“CFS”); (iv) Custom Clearance (v) and; other services. We also provide integrated logistics solutions including project logistics and third party logistics (“3PL”). We operate through major Indian ports, including NHAVA Sheva, Hazira, Tumb, Pune, Mundra and Chennai and have pan-India operations covering over 23 states and union territories through our network of 4 marketing offices located in the city of Vishakhapatnam, Jaipur, Pune, Tuticorin. We primarily served clients through 263 ports across the globe and handled about 24,782 shipments and 73,052 TEUs from Fiscal 2023 to Fiscal 2025. Our in-house team consisting of 55 personnel as of May 31, 2025 with over a decade of experience, ensures smooth coordination across all departments, enabling precise tracking, proactive issue resolution, and continuous process optimization. Further, during the period ended March 31, 2025, we have processed over 24,000 Bill of Lading to countries/ areas to various countries
For more details, please refer chapter titled “Our Business” beginning on page 115 of this Draft Red Herring Prospectus. SIGNIFICANT DEVELOPMENTS AFTER FISCAL 2025
In the opinion of the Board of Directors of our Company, since the date of the last financial year as stated in this Draft Red Herring Prospectus, there have not arisen any circumstance that materially or adversely affect or are likely to affect the profitability of our Company or the value of its assets or its ability to pay its material liabilities within the next twelve months.
FACTORS AFFECTING OUR RESULTS OF OPERATIONS
Our business is subject to various risks and uncertainties, including those discussed in the section titled “Risk Factors” on page 28 beginning of this Draft Red Herring Prospectus.
Our Companys future results of operations could be affected potentially by the following factors:
Global and Domestic Trade Volumes
Our business operations are intrinsically linked to the volume and flow of global and domestic trade. Any adverse developments such as economic slowdowns, policy changes, supply chain disruptions, or geopolitical uncertainties may lead to a decline in import and export activities. Such fluctuations in trade volumes can directly impact the demand for our logistics services and, in turn, affect our revenue and profitability. A prolonged decline in trade volumes or restricted access to key markets may lead to underutilization of resources, lower freight volumes, and adversely affect our revenue, margins, and overall business performance.
Our operations are substantially dependent on the volume of cargo handled and transported by our company. For the Fiscal 2025, Fiscal 2024 and Fiscal 2023, we handled cargo / shipments of 4,313.08 MT, 807.70MT and 747.20MT respectively. We operate through major Indian ports, including NHAVA Sheva, Hazira, Tumb, Pune, Mundra and Chennai and have pan-India operations covering over 23 states and union territories through our network of 4 marketing offices.
The volume of cargo handled by us, and our results of operations, depend on trade volumes, which are closely linked with economic conditions prevalent globally and in India. Factors that may affect the trade volumes of any country include macroeconomic developments, Government policies relating to trade and commerce, trade barriers, inflation and interest rates, fuel prices, labor issues, among others. For instance:
a. Slowdown in economic growth due to factors such as financial crisis or internal political developments; and
b. Imposition of new trade barriers such as rail, road and other tariffs, economic or military sanctions, export subsidies and import restrictions or duties in India or globally;
will impact the volume of trade and, consequently, volume of cargo handled and transported by our company. Conversely, economic conditions may have a positive effect on international trade and benefit the industries of our customers, which is likely to have a favourable effect on our results of operations. We aim to increase volume of cargo handled by way of exploring growth opportunities. Further, we expect favourable government initiatives, including Maritime India Vision 2030, Maritime Amrit Kaal Vision 2047 and other government initiatives
Dependence on Ocean Logistics Services
A substantial portion of our revenue is derived from ocean logistics services, making our business highly dependent on the performance of this segment. Any disruption in global shipping operations, volatility in ocean freight rates, port congestion, fuel price fluctuations, or changes in regulations affecting coastal and international shipping could adversely impact our operations and profitability. As we primarily operate on market-driven pricing and rely on third-party carriers and port infrastructure, our ability to maintain margins depends on both service efficiency and cost management. A decline in customer demand for ocean-related services or the loss of key clients may materially affect our financial performance
Longstanding relationship with diverse set of customers across industries
We primarily cater to our customers in various sectors including Chemical & Allied Products, Textile & Commodities and Machinery Equipment. Our business is conducted on a business-to-business basis. For the Fiscal 2025, 2024 and 2023, we have served 704, 633 and 589 customers, respectively. Our revenue from operations are significantly affected by the number of customers served in the particular period/fiscal. Our complete integrated end to end shipping and logistic services provides our customers with a preferable option of single-window solutions thereby negating the need to approach multiple service providers at different levels in the chain of shipping and logistic services. Our integrated operations and efficiency have led to high customer retention rates and enabled us to gain new customers. For instance, we have generated a revenue of Rs. 12,541.55 Lakhs, Rs. 7,888.32 Lakhs and Rs. 11,635.45 Lakhs for Fiscal 2025, Fiscal 2024 and Fiscal 2023 respectively from 182 customers who has been associated with us for more than three years.
We believe that our long-standing relationships are largely attributable to our integrated services which allow us to cater to our customers complex requirements with operational efficiency and cost-effectiveness. While we cater to various industries, we depend on certain customers, who are engaged in Chemical & Allied Products, Textile & Commodities and Machinery Equipment that contribute significantly to our revenue from operations. Our customers engaged in these industries contributed 50.26%, 56.83% and 53.81 % respectively. Following table sets forth our top 5 industry-wise revenue contribution from the FTL transportation and rail/multimodal transportation for the years indicated:
| Industry | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 | |||
| Revenue (Rs.) | % of Revenue from operations | Revenue (Rs.) | % of Revenue from operations | Revenue (Rs.) | % of Revenue from operations | |
| Chemical & Allied Products | 4,223.60 | 22.16 | 1,912.82 | 18.72 | 2,375.20 | 12.57 |
| Textiles & Commodities | 3,324.18 | 17.44 | 3,194.88 | 31.26 | 6,695.14 | 35.42 |
| Machinery equipment | 2,030.72 | 10.66 | 699.74 | 6.85 | 1,099.15 | 5.82 |
| Electrical & electronics equipments | 1,400.18 | 7.35 | 711.16 | 6.96 | 1,050.88 | 5.56 |
| Furniture, fixtures & equipment | 1,254.08 | 6.58 | 349.18 | 3.42 | 689.70 | 3.65 |
Total |
12,232.76 | 64.19 | 6,867.78 | 67.20 | 11,910.07 | 63.01 |
We expect that we will continue to be reliant on our key customers for the foreseeable future. Accordingly, any delay in payment by such customers or failure to retain these customers and/or negotiate and execute contracts on terms that are commercially viable, with these select customers, could adversely affect our business, results of operations and financial condition. Our revenues may be adversely affected if there is an adverse change in any of our key customers supply chain strategies or a reduction in their outsourcing of logistics operations, or if our customers decide to choose our competitors over us or if there is a significant reduction in the volume of our business with such customers. A decline in our key customers business performance may lead to a corresponding decrease in demand for our services, if not suitably replaced with business from another customer. Furthermore, the volume of work performed for these customers may vary from period to period.
Our Cash Operating Expenses
We have witnessed significant growth in our business and operations over the past few years. As we continue to expand our operations, optimizing our cash operating expenses will be critical to maintaining our competitiveness and profitability. Generally, increases in Cash Operating Expenses have been offset through increases in prices of our services. However, any increase in cash operating expenses that we are unable to pass on to our customers or increase in cash operating expenses due to change in our operations could adversely affect our result of operations.
Throughout our operations, we have adopted and expected to continue to adopt, strategies to optimise our cash operating expenses and enhance our operating efficiency, which include our investment in our fleet of vessels and vehicles and reorganisation of businesses in a manner that facilitates optimum utilisation of manpower and assets.
Set forth below is a table which provides details of our Cash Operating Expenses, for the periods indicated, as well as such expenses as a percentage of our revenue from operations:
in Lakhs)
| Particulars | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 | |||
| Rs. | % to the Total Income | Rs. | % to the Total Income | Rs. | % to the Total Income | |
| Cost of Services (A)(1) | 17,316.30 | 90.38 | 9,245.68 | 89.37 | 17,790.89 | 92.94 |
| Employee benefits Expenses (B)(2) | 381.63 | 1.99 | 323.06 | 3.12 | 296.96 | 1.55 |
| Other expenses (C)(3) | 521.96 | 2.72 | 372.85 | 3.60 | 537.89 | 2.81 |
| (D=A+B+C) | 18,219.21 | 95.09 | 9,941.59 | 96.09 | 18,625.74 | 97.30 |
(1
Cost of services include charges of ocean freight, air freight, container freight station and local charges, and other servicesEmployee benefit expenses include Salary, contribution to provident fund and other statutory funds and Employee welfare expenses
Other expenses primarily include Insurance expenses, Travel & Conveyance expenses, Legal and Professional fees and Office General Expenses.
Our cost of services is a significant component of our operational expenses, contributing 90.38%, 89.37%, and 92.94% for the Fiscal 2025 2024 and 2023. Our cost of services includes charges of ocean freight, air freight, container freight station and local charges, and other services. Our cost of services is directly impacted by volume of cargo handled and transported by our company for the respective period.
Employee benefit expenses comprise salaries, contribution to provident and other funds, gratuity and other staff welfare payments. These expenses have continued to increase as a result of annual wage increments as well as an increase in the headcount of our employees, which reflects the effects of expansion of our business. Our total employees benefit expenses increased by 1.99% and 3.60% in Fiscals 2025 and 2024. Our employees and operational workers are key to the success of our business.
Our other expenses primarily include Commission expenses, Travel & Conveyance expenses, Legal and Professional fees and Office General Expense. We have successfully managed to optimise our other expenses in comparison with growth in our revenue from operations. Other expenses in comparison with revenue from operations amounts to 2.72%, 3.60% and 2.81%, for the Fiscal 2025, 2024 and 2023, respectively.
The scale of our operations and vast distribution network along with our customers confidence have had a significant impact on our revenues and profitability. Set out below are a few key performance indicators
| Particulars | Unit | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 |
| Revenue from Operations (1) | Rs. in Lakhs | 19,055.91 | 10,220.24 | 18,900.95 |
| Revenue Growth(2) | Y-o-Y % | 86.45% | (45.93)% | N.A. |
| EBITDA (3) | Rs. in Lakhs | 939.59 | 395.54 | 477.73 |
| EBITDA Margin (4) | % | 4.93% | 3.87% | 2.53% |
| PAT(5) | Rs. in Lakhs | 681.51 | 263.35 | 382.59 |
| PAT Margin (6) | % | 3.58% | 2.58% | 2.02% |
| Current Ratio(7) | Times | 1.93 | 1.52 | 1.43 |
| Debt to Equity(8) | Times | 0.07 | 0.47 | 0.91 |
| Working Capital Days(9) | Days | 11 | 4 | 4 |
| Return on Assets(10) | % | 19.35% | 11.18% | 21.17% |
Operational KPI |
||||
| TEU(11) | Actual | 29,094 | 21,597 | 22,361 |
| Number of shipments(12) | Actual | 10,384 | 7,288 | 7,110 |
Notes:
(1
Revenue from operation means revenue from sales.(2)
Revenee growth isy-o-ygrowth which is calculated as (currentyear sales - previous year sales) /previousyear sales* 100(3)
EBITDA is calculated as Profit before tax + Depreciation + Interest Expenses.(4
EBITDA Margin is calculated as EBITDA divided by Revenue from Operations.(54
>PAT is profit as per Restated Financial Statements(
6) pat Margin is calculated as PAT for the period/year divided by revenue from operations.(7
Current Ratio is calculated by dividing Current Assets to Current Liabilities.(8
Debt to Equity ratio is calculated as Long term Debt + Short Term Debt divided by equity.(9)
Working Capital Days is calculated as Receivables days Outstanding - Payables days Outstanding.(10)
Return on Assets is calculated as PAT divided by Total Assets(111
TEUs stands for Twenty-foot Equivalent Unit, which describe the capacity of container ships and container terminals handled by the Company during the year(122
Number of shipments are the count of shipments handled by the Company during the year.SIGNIFICANT ACCOUNTING POLICIES
For Significant accounting policies please refer Significant Accounting Policies beginning under “Restated Financial Statements" on page 160 of this Draft Red Herring Prospectus.
DETAILS OF THE REVENUE RECOGNITION METHOD ADOPTED BY THE ISSUER AND ITS BASIC PARAMETERS.
The Company recognises revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. A 5-step approach is used to recognise revenue as below:
Step 1: Identify the contract(s) with a customer Step 2: Identify the performance obligation in contract Step 3: Determine the transaction price
Step 4: Allocate the transaction price to the performance obligations in the contract Step 5: Recognise revenue when (or as) the entity satisfies a performance obligation
Nature of Operations
The principal activities of the company are: -
• Air or Ocean Freight Forwarding
• Transportation Services
• Container Freight Station (CFS) solutions
• Custom Clearance services
• Other supporting Services
The company is engaged in business of ocean and air freight forwarding, transportation services, container freight station solutions, custom clearance services & other supporting activities.
The very nature of the business requires the company to incur a number of expenses on behalf of customer which are reimbursed by the customer. As per the Guidance Note on Tax Audit u/s 44AB of the Income-tax Act, 1961 issued by The Institute of Chartered Accountants of India states on page 22 that:
• The Statement on the Companies (Auditors Report) Order, 2003 issued by the Institute in April 2004, while discussing the term turnover in paragraph 23 states as follows: The term, "turnover", has not been defined by the Order. Part II of Schedule VI to the Act, however, defines the term "turnover" as the aggregate amount for which sales are affected by the company. It may be noted that the "sales effected" would include sale of goods as well as services rendered by the company. In an agency relationship, turnover is the amount of commission earned by the agent and not the aggregate amount for which sales are effected or services are rendered. The term "turnover" is a commercial term and it should be construed in accordance with the method of accounting regularly employed by the company.
• Although, Schedule III of the Companies Act, 2013 has replaced the Revised Schedule VI of the Companies Act, 1956 in the year 2014, guidance given herein above with respect to meaning of the term “turnover” is still relevant.
Accordingly, in profit and loss account revenue from operations figure is arrived at after excluding the reimbursement of expenses. However, the customers may be required to deduct tax on the gross amount of bill including reimbursement of expenses. The company has been following the said practice since beginning in line with all other entities in similar business.
COMPONENTS OF INCOME AND EXPENDITURE Total Revenue
Our total revenue is divided into revenue from operations and other income.
Revenue from operations consists of Air Freight, Ocean Freight, Container Freight Station and Local Charges and other services which are divided into Exempted and Nil Rated Services and Taxable Services; and Other Operating Revenues.
Other income consists of Foreign Shipment Income, Interest Income, Foreign Exchange Gain, Interest on Income Tax Refund, and Profit on Sale of Mutual Fund.
Our total expenses comprise of Cost of Services, Employee Benefit Expenses, Financial Costs, Depreciation and amortisation cost, other expenses.
Cost of services
Being a freight forwarder, our Cost of services includes Air Freight, Ocean Freight, CFS and Local Charges and other services which are divided into Overseas input services and Input Services within India, and Other Direct Expenses.
Finance Costs
Finance costs includes Interest Expenses.
Employee benefits expenses
Employee benefit expenses comprise of Salary and Bonus, Remuneration to Directors, Sitting Fees to Directors, Contribution towards PF and ESIC and Staff Welfare Expenses.
Depreciation and Amortization Expenses
Depreciation and amortization expenses primarily include Depreciation and Amortisation expense.
Other Expenses
Other expenses include Commission Expenses, Conveyance & Travelling Expenses, Professional Fees, Rent Expenses, Forex Exchange Loss, Bank Charges, Business Promotion Expenses, Office Expenses, Repair and Maintenance Expenses, Printing & Stationery Expenses, Other Miscellaneous Expenditures.
RESULTS OF OPERATIONS
The following discussion on results of operations should be read in conjunction with the Restated Financial Statements of our Company for the financial years ended on 2025, 2024 and 2023:
(t in Lakhs)
| Particulars | Fiscal 2025 (Rs.) | % of Total Income | Fiscal 2024 (Rs.) | % of Total Income | Fiscal 2023 (Rs.) | % of Total Income |
Revenue |
||||||
| Revenue from Operations | 19,055.91 | 99.46 | 10,220.24 | 98.79 | 18,900.95 | 98.74 |
| Other Income | 104.04 | 0.54 | 124.85 | 1.21 | 241.63 | 1.26 |
Total Income |
19,159.95 | 100.00 | 10,345.09 | 100.00 | 19,142.58 | 100.00 |
Expenses |
||||||
| Purchase of Services | 17,316.30 | 90.38 | 9,245.68 | 89.37 | 17,790.89 | 92.94 |
| Employee Benefit expenses | 381.63 | 1.99 | 323.06 | 3.12 | 296.96 | 1.55 |
| Financial Costs | 15.09 | 0.08 | 45.23 | 0.44 | 3.74 | 0.02 |
| Depreciation and amortisation expense | 14.23 | 0.07 | 6.34 | 0.06 | 1.82 | 0.01 |
| Other expenses | 521.96 | 2.72 | 372.85 | 3.60 | 537.89 | 2.81 |
Total expenses |
18,249.21 | 95.25 | 9,993.16 | 96.60 | 18,631.30 | 97.33 |
Profit before tax |
910.74 | 4.75 | 351.93 | 3.40 | 511.28 | 2.67 |
Tax expense |
||||||
| Current tax | 230.78 | 1.20 | 88.00 | 0.85 | 129.52 | 0.68 |
| Deferred tax (credit)/charge | (1.54) | (0.01) | 0.58 | 0.01 | (0.83) | 0.00 |
| Earlier Year Taxes | - | - | - | - | - | - |
Profit for the period / year |
681.51 | 3.56 | 263.35 | 2.55 | 382.59 | 2.00 |
COMPARISON OF FINANCIAL YEAR ENDED 2025 TO FINANCIAL YEAR ENDED 2024 Components of Balance Sheet
Long Term borrowings:
Long Term Borrowings has decreased by 31.50% to the extent monthly instalments being paid by the Company during the year.
Short Term Borrowings:
Short term borrowings have decreased by 74.39% this is mainly attributable to the conversion of borrowings to equity during the Fiscal 2025. Other than the above, the loans payable on demand has increased by 55.70% due to increase in overdraft facility utilised by the Company during the Fiscal 2025.
Trade receivables;
Trade receivables have increased by 92.25%, this is due to increase in revenue from operations during the Fiscal 2025 as compared to Fiscal 2024 and further additional credit given to new and existing customers.
Trade Payables:
Trade payables have increased 59.99%, this is mainly due to corresponding increase in purchase of services as compared to the revenue increase during the Fiscal 2025 as compared to Fiscal 2024.
Investments:
Investments during the Fiscal 2025 has increase by 25.62% which is attributable mainly to increase in Long term fixed deposit with the Bank and investment in equity shares of Cosmos Co-op Bank.
Loans and Advances:
Short term Loans and Advances have increased by 99.63%, this increase is due to the advance given to suppliers mainly shipping companies for better freight rates and loans and advances given to directors and their related parties.
Income
Total Income:
Our total income was increased by 85.21% from Rs. 10,345.09 Lakhs in Fiscal 2024 to Rs. 19,159.95 Lakhs in Fiscal 2025 due to the factors described below:
Revenue from Operations:
Our Revenue from Operations was increased by 86.45% in the year Fiscal 2025. The amount increased from Rs.10,220.24 Lakhs in Fiscal 2024 to Rs. 19,055.91 Lakhs in Fiscal 2025. This exceptional performance was driven by a combination of operational expansion, market-driven price increases and enhanced service offerings:
1. Network & Sales Expansion:
i. We onboarded 4 senior sales executives, 1 junior sales executive and 2 senior marketing executives, which translated into a 98% increase in air-freight shipments and a 40% increase in ocean-freight shipments.
ii. Enhanced territory coverage and targeted account management boosted both new-client acquisition and wallet share among existing customers.
2. Freight-Rate Inflation:
i. Global supply-demand imbalances lifted average ocean-freight rates significantly during FY 2024-25.
ii. Despite a 40% volume uptick in ocean shipments, revenue from ocean services jumped by 122%, reflecting rate increases more than volume growth.
3. Strategic Partnerships
We entered into agreements with leading liner operators, securing volume-linked rate concessions and priority space allocations.
4. Value-Added Logistics Services:
Expansion of door-to-door end-to-end solutions (e.g., customs clearance, warehousing, last-mile delivery) increased our average revenue per shipment.
Other Income
Other income decreased by 16.67% from t 124.85 Lakhs in Fiscal 2024 to t 104.04 Lakhs in Fiscal 2025. This is mainly because of the foreign shipping income, Foreign exchange and interest on income tax refund and net profit on sale of mutual fund.
The foreign shipment income has decreased from t 114.70 Lakhs in Fiscal 2024 to t103.57 Lakhs in Fiscal 2025, Interest Income from Deposits decreased from t 0.59 Lakhs in Fiscal 2024 to t 0.45 Lakhs in Fiscal 2025, income from foreign exchange gain in Fiscal 2024 has been reduced to 0 (Zero) in Fiscal 2025 as the Company incurred Foreign Exchange loss in Fiscal 2025. Further the Company has not received the Income Tax refund during the Fiscal 2025 and thereby the Interest on Income Tax Refund has decreased from t 7.37 Lakhs in Fiscal 2024 to 0 (Zero) in Fiscal 2025 and the Company has earned 0.02 Lakhs on sale of mutual funds in Fiscal 2025.
Expenditure
Total Expenses:
Our total expenses increased by 82.62% from t 9,993.16 Lakhs in Fiscal 2024 to t 18,249.21 Lakhs in Fiscal 2025 due to the factors described below:
Cost of services
Cost of services was increased by 87.29% from t 9,245.68 Lakhs in Fiscal 2024 to t 17,316.3 Lakhs in the Fiscal 2025. This was because of the corresponding increase in sales and no of shipments and freight rates.
Employee benefit expenses
The Employee Benefit Expenses increased by 18.13% from t 323.06 Lakhs in Fiscal 2024 to t 381.63 Lakhs in Fiscal 2025. This increase was mainly due to higher salaries, wages, and bonuses, resulting from regular salary hikes provided to employees. Additionally the average number of employees for the year has increased from 42 during Fiscal 2024 to 53 during the Fiscal 2025. Furthermore, there has been a 38.60 % increase in Staff welfare expenditure during the Fiscal 2025.
Financial Costs
Our Financial Costs decreased by 66.64% from t 45.23 Lakhs in Fiscal 2024 to t 15.09 Lakhs in Fiscal 2025. This was mainly due to conversion of existing loans to equity during the Fiscal 2025, thereby reducing the Interest burden on these loans and further better management of the Overdraft facilities during the Fiscal 2025.
Depreciation and amortisation expense
The Depreciation and Amortization expenses was increased by 124.60 % from t 6.34 Lakhs in Fiscal 2024 to t 14.23 Lakhs in Fiscal 2025 due to addition in gross block of property, plant and equipment.
Other expenses increased by 39.99 % from Rs. 372.85 Lakhs in Fiscal 2024 to Rs. 521.96 Lakhs in Fiscal 2025. This was on account of (i) about 56.36 % increase in commission given to agents which is in proportion to increase in turnover, (ii) there is a 131.39 % increase in conveyance and travelling expenses of the employees, (iii) a 77% increase in bank charges due to additional processing of Bank overdraft facilities and charges for overseas payments and receipts and (iv) a 128.23 % increase in Office expenses.
Profit before Tax
Our profit before tax increased by 158.78% from Rs. 351.93 for the Fiscal 2024 to Rs. 910.74 Lakhs in Fiscal 2025.
Tax Expenses
Our total tax expense increased by 140.66% from Rs. 88.58 Lakhs in Fiscal 2024 to Rs. 229.24 Lakhs in the Fiscal 2025.
Profit after Tax
After accounting for taxes at applicable rates, our Profit after Tax increased by 158.78% from Rs. 263.35 Lakhs in Fiscal 2024 to Rs. 681.51 Lakhs in Fiscal 2025. This was due to increase in (i) no of shipments processed by 42.48% during the Fiscal 2025 to 10384 from 7288 in Fiscal 2024 and (ii) further enhanced pricing strategies, leading to increased revenue and margins, effective cost management and control measures, leading to reduced expenses.
COMPARISON OF FINANCIAL YEAR ENDED 2024 TO FINANCIAL YEAR ENDED 2023
Components of Balance Sheet
Long Term borrowings:
The Company has availed the Term loan from the bank during the Fiscal 2024 and thereby the increase in Long Term Borrowings is attributable to the Term loan availed by the Company.
Short Term Borrowings:
Short term borrowings have decreased by 30.20% this is mainly attributable to the repayment of borrowings availed by the Company during the Fiscal 2024.
Trade receivables;
Trade receivables have increased by 43.03%, despite decrease in revenue from operations which was mainly because of decrease in freight rates, the number of shipments have increased thereby the trade receivables have increased.
Trade Payables:
Trade payables have increased 72.51%, this is mainly due to corresponding increase in number of shipments despite decrease in freight rates.
Investments:
Investments during the Fiscal 2024 has decreased by 38.86% which is attributable mainly to decrease in Long term fixed deposit with the Bank and increase in Investment in Gold.
Loans and Advances:
Short term Loans and Advances have decreased by 30.49%, this decrease is due to the decrease in loans and advances given to directors and their related parties wherein the company has received the advances do given and there is an increase in loans and advances given to staff during the Fiscal 2024 as compared with Fiscal 2023.
Income
Total Income:
Our total income was decreased by 45.96% from t 19,142.58 Lakhs in Fiscal 2023 to t 10,345.09 Lakhs in Fiscal 2024 due to the factors described below:
Revenue from Operations:
Our Revenue from Operations was decreased by 45.93% in the year Fiscal 2024. The amount decreased from t 18,900.95 Lakhs in Fiscal 2023 to t 10,220.24 Lakhs in Fiscal 2024. The decrease in absolute numbers do not justify the Companys exceptional performance which was driven by a combination of operational expansion, market-driven price increases and enhanced service offerings:
- We onboarded 1 senior sales executives and 2 junior sales executives, which translated into a 36% increase in airfreight shipments and increase in ocean-freight shipments.
- Enhanced territory coverage and targeted account management boosted both new-client acquisition and wallet share among existing customers.
- The global supply-demand imbalances reduced the average ocean-freight rates significantly during FY 2023-24. Despite an uptick in volume of ocean shipments, revenue from ocean services reduced by 63%, reflecting the rate decreases despite the volume growth.
Other Income
Other income decreased by 48.33% from t 241.63 Lakhs in Fiscal 2023 to t 124.85 Lakhs in Fiscal 2024.This is mainly because of the foreign shipping income and interest on income tax refund.
The foreign shipment income has decreased from t 202.52 Lakhs in Fiscal 2023 to t114.70 Lakhs in Fiscal 2024, Interest Income from Deposits decreased from t 3.11 Lakhs in Fiscal 2023 to t 0.59 Lakhs in Fiscal 2024. Further Company received income from Foreign Exchange gain in Fiscal 2024 of t 2.19 Lakhs compared to 0 (zero) in Fiscal 2023. Further the Company has received the Income Tax refund during the Fiscal 2024 within due time and thereby the Interest on Income Tax Refund has decreased from t 36 Lakhs in Fiscal 2024 to t 7.37 Lakhs in Fiscal 2024.
Expenditure
Total Expenses:
Our total expenses decreased by 46.36% from t 18631.30 Lakhs in Fiscal 2023 to t 9,993.16 Lakhs in Fiscal 2024 due to the factors described below:
Cost of services
Cost of services was decreased by 48.03% from t 17,790.89 Lakhs in Fiscal 2023 to t 9,245.68 Lakhs in the Fiscal 2024. This was mainly because of the corresponding decrease in sales, despite of increase in no of shipments and decrease in freight rates as explained above in Revenue from operations.
Employee benefit expenses
The Employee Benefit Expenses decreased by 8.79% from t 296.96 Lakhs in Fiscal 2023 to t 323.06 Lakhs in Fiscal 2024. This increase was mainly due to higher salaries, wages, and bonuses, resulting from regular salary hikes provided to employees. Despite a marginal decrease in the average number of employees for the year from 45 during Fiscal 2023 to 42 during the Fiscal 2024. Furthermore, there has been a 35.89% increase in Staff welfare expenditure during the Fiscal 2025.
Financial Costs
Our Financial Costs increased by 1109.36% from t 3.74 Lakhs in Fiscal 2023 to t 45.23 Lakhs in Fiscal 2024. This was mainly due to Interest being charged for the whole year in Fiscal 2024, however, the corresponding interest in Fiscal 2023 was liable for only a short period of time.
Depreciation and amortisation expense
The Depreciation and Amortization expenses was increased by 248.11% from t 1.82 Lakhs in Fiscal 2023 to t 6.34 Lakhs in Fiscal 2024.
Other expenses decreased by 30.68% from t 537.89 Lakhs in Fiscal 2023 to t 372.85 Lakhs in Fiscal 2024. This was on account of (i) about 41% decrease in rental expenses, (ii) about 17% decrease in professional fees, (iii) a 100% decrease in foreign exchange loss and despite an increase of 44% of business promotion expenses and 89% increase in Printing and Stationery expenditure.
Profit before Tax
Our profit before tax decreased by 31.17% from t 511.28 for the Fiscal 2023 to t 351.93 Lakhs in Fiscal 2024.
Tax Expenses
Our total tax expense decreased by 40.11% from t 128.69 Lakhs in Fiscal 2023 to t 88.58 Lakhs in the Fiscal 2024.
Profit after Tax
After accounting for taxes at applicable rates, our Profit after Tax decreased by 31.17% from t 382.59 Lakhs in Fiscal 2023 to t 263.35 Lakhs in Fiscal 2024. Although the absolute Profit After Tax has declined, the PAT margin has improved from 2.02% to 2.58%, owing to enhanced pricing strategies, leading to increased revenue and margins, effective cost management and control measures, leading to reduced expenses.
CASH FLOWS
The table below is our cash flows for the Fiscal 2025, Fiscal 2024 and Fiscal 2023:
(t in Lakhs)
| Particulars | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 |
| Net cash (used)/from operating activities | (176.34) | 234.27 | (26.67) |
| Net cash (used)/from investing activities | (27.49) | (51.98) | (45.58) |
| Net cash (used)/from financing activities | 176.32 | (17.96) | (3.74) |
Cash Flows from Operating Activities
For the Fiscal 2025
Our net cash used in operating activities was t 176.34 Lakhs for the Fiscal 2025. Our net profit before tax and extraordinary items of t 910.74 Lakhs for the Fiscal 2025 which was primarily adjusted against Depreciation of t 14.23 Lakhs and Interest Expenses of t 15.09 Lakhs. Operating profit before working capital changes was t 940.06 Lakhs for the Fiscal 2025.
The adjustments to operating profit before working capital changes included adjustments for (i) Increase in trade payables by t 591.99 Lakhs, (ii)Increase in long term provisions by t 6.61 Lakhs, (iii)Decrease in Short-term borrowing by t 279.66 Lakhs, (iv) Decrease in other current liabilities by t 25.58 Lakhs, (v) Increase in short term provisions by t 0.01 Lakhs (vi) Increase in Short-term loans and advances by t 120.61 Lakhs, (vii) Increase in Trade receivables by t 1,106.01 Lakhs, and (vii) Decrease in Other current assets by t 123.59 Lakhs. Tax paid for the Fiscal 2025 amount to t 306.76 Lakhs.
For the Fiscal 2024
Our net cash generated in operating activities was t 234.27 Lakhs for the Fiscal 2024. Our net profit before tax and extraordinary items of t 351.93 Lakhs Fiscal 2024 which was primarily adjusted against Depreciation of t 6.34 Lakhs and Interest Expenses of t 45.23 Lakhs. Operating profit before working capital changes was t 403.50 Lakhs Fiscal 2024.
The adjustments to operating profit before working capital changes included adjustments for (i) Increase in trade payables by t 414.75 Lakhs, (ii) Increase in long term provisions by t 1.95 Lakhs, (iii)Decrease in Short-term borrowing by t 162.67 Lakhs, (iii) Increase in other current liabilities by t 4.03 Lakhs, (iv) Increase in Short-term provisions by t 0.02 Lakhs,
(iv)Decrease in Short-term loans and advances by t 53.11 Lakhs, (v) Increase in Trade receivables by t 360.71 Lakhs, and (vi) Increase in Other current assets by t 123.87 Lakhs. Tax paid for the period Fiscal 2024 amount to t 4.17 Lakhs.
For the Fiscal 2023
Our net cash used in operating activities was t 26.67 Lakhs for the Fiscal 2023. Our net profit before tax and extraordinary items of t 511.28 Lakhs for the Fiscal 2024 which was primarily adjusted against Depreciation of t 1.82 Lakhs, Interest Expenses of t 3.74 Lakhs and other adjustment of t 4.46 Lakhs. Operating profit before working capital changes was t 512.38 Lakhs for the Fiscal 2024.
The adjustments to operating profit before working capital changes included adjustments for (i) Decrease in trade payables by t 1,793.75 Lakh, (ii) Increase in long term borrowing by t 4.60 Lakhs, (iii) Decrease in Short-term borrowing by t 33.24 Lakhs, (iii) Increase in other current liabilities by t 22.00 Lakhs, (iv) Increase in Short-term loans and advances by t 62.46 Lakhs, (v) Decrease in Trade receivables by t 1,290.90 Lakhs, and (vi) Decrease in Other current assets by t 257.14 Lakhs. Tax paid for the Fiscal 2023 amount to t 224.24 Lakhs.
Cash Flows from Investing Activities
For the Fiscal 2025
Net cash flow used in investing activities for the Fiscal 2025 was t 27.49 Lakhs. This was primarily on account of purchase of Tangible Assets t 7.35 Lakhs, Non-current investments t 4.05 Lakhs and Non-current assets of t 16.09 Lakhs.
For the Fiscal 2024
Net cash flow used in investing activities for the Fiscal 2024 was t 51.98 Lakhs. This was primarily on account of purchase of Tangible Assets t 64.27 Lakhs. This was partially offset by Non-current investments t 10.05 Lakhs and Non-current assets of t 2.24 Lakhs.
For the Fiscal 2023
Net cash flow used in investing activities for the Fiscal 2023 was t 45.58 Lakhs. This was primarily on account of purchase of Tangible Assets t 26.08 Lakhs and Non-current investments t 20.68 Lakhs. This was partially offset by Non-current assets of t 1.18 Lakhs.
Cash Flows from Financing Activities
For the Fiscal 2025
Net cash flow generated from financing activities for the Fiscal 2025 was t 176.32 Lakhs. This was primarily on account of Interest Expenses of t 15.09 Lakhs and Funds Repaid of t 8.59 lakhs. This was partially offset by Fresh Equity issued upon Loan conversion of t 200 Lakhs.
For the Fiscal 2024
Net cash flow used in financing activities for the Fiscal 2024 was t 17.96 Lakhs. This was primarily on account of Interest Expenses of t 45.23 Lakhs and Funds Repaid of t 1.02 Lakhs. This was partially offset by Funds borrowed of t 28.29 lakhs.
For the Fiscal 2023
Net cash flow used in financing activities for the Fiscal 2023 was t 3.74 Lakhs. This was primarily on account of Interest Expenses paid of t 3.74 Lakhs.
RELATED PARTY TRANSACTIONS
Related party transactions with certain of our promoter, directors and their entities and relatives primarily relate to remuneration, salary, commission and issue of Equity Shares. For further details of related parties kindly refer chapter titled “Restated Financial Statements” beginning on page 160 of this Draft Red Herring Prospectus.
OFF-BALANCE SHEET ITEMS
We do not have any other off-balance sheet arrangements, derivative instruments or other relationships with any entity that have been established for the purposes of facilitating off-balance sheet arrangements.
QUALIFICATIONS OF THE STATUTORY AUDITORS WHICH HAVE NOT BEEN GIVEN EFFECT TO IN THE RESTATED FINANCIAL STATEMENTS
The Restated Financial Statements do not contain any qualifications which have not been given effect in the restated financial statements.
QUALITATIVE DISCLOSURE ABOUT MARKET RISK Financial Market Risks
Market risk is the risk of loss related to adverse changes in market prices, costs of transportation, including. We are exposed to inflation and credit risk in the normal course of our business.
Interest Rate Risk
Our financial results are subject to changes in interest rates, which may affect our debt service obligations in future and our access to funds.
Effect of Inflation
We are affected by inflation as it has an impact on the salary, wages, etc. In line with changing inflation rates, we rework our margins so as to absorb the inflationary impact.
Credit Risk
We are exposed to credit risk on monies owed to us by our customers. If our customers do not pay us promptly, or at all, we may have to make provisions for or write-off such amounts.
OTHER MATTERS
Details of default, if any, including therein the amount involved, duration of default and present status, in repayment of statutory dues or repayment of debentures or repayment of deposits or repayment of loans from any bank or financial institution
Except as disclosed in chapter titled “Restated Financial Statements” beginning on page 160 of this Draft Red Herring Prospectus, there have been no defaults in payment of statutory dues or repayment of debentures and interest thereon or repayment of deposits and interest thereon or repayment of loans from any bank or financial institution and interest thereon by the Company.
Material Frauds
There are no material frauds, as reported by our statutory auditor, committed against our Company, in the last three Fiscals.
Unusual or infrequent events or transactions
Except as described in this Draft Red Herring Prospectus, during the period/ years under review there have been no transactions or events, which in our best judgment, would be considered “unusual” or “infrequent”.
Significant Economic Changes that Materially Affected or are Likely to Affect Income from Continuing Operations
Our business has been subject, and we expect it to continue to be subject, to significant economic changes that materially affect or are likely to affect our income from continuing operations identified above in ‘Managements Discussion and Analysis ofFinancial Condition and Results of Operations -Significant factors affecting our financial condition and results of operations and the uncertainties described in ‘Risk Factors on pages 189 and 28 respectively.
Known trends or uncertainties that have had or are expected to have a material adverse impact on revenue or income from continuing operations
Other than as described in the section titled “Risk Factors” and chapter titled “Managements Discussion and Analysis of Financial Conditions and Results of Operations”, beginning on page 28 and 189 of this Draft Red Herring Prospectus
respectively to our knowledge there are no known trends or uncertainties that have or had or are expected to have a material adverse impact on revenues or income of our company from continuing operations.
Future relationship between Costs and Income
Other than as described in the section titled “Risk Factors” beginning on page 28 of this Draft Red Herring Prospectus, to our knowledge there are no factors, which will affect the future relationship between costs and income or which are expected to have a material adverse impact on our operations and finances.
The extent to which material increases in revenue or income from operations are due to increased volume, introduction of new products or services or increased prices
Changes in revenue in the last three financial years are as explained in the part “Financial Year 202 4-25 compared with financial year 2023-24.
Total turnover of industry segments
Our Company is engaged into business of carriers of transport by sea, air and land. Relevant industry data, as available, has been included in the chapter titled “Industry Overview” beginning on page 100 of this Draft Red Herring Prospectus.
Significant dependence on a single or few Suppliers or Customers
Significant proportion of our purchases have historically been derived from a limited number of suppliers. The % of Contribution of our suppliers vis a vis the total purchases for the Fiscal 2025, 2024 and 2023 are as follows:
(Rs. in Lakhs)
| Period | Cost of Services from Largest Supplier (Rs.) | % Contribution of Largest Supplier to Cost of Services | Cost of Services from Top 5 Suppliers (Rs.) | % Contribution of Largest Supplier to Cost of Services | Cost of Services from Top 10 Suppliers (Rs.) | % Contribution of Largest Supplier to Cost of Services |
| Fiscal 2025 | 1,284.63 | 7.42% | 4,689.33 | 27.08% | 7,521.19 | 43.43% |
| Fiscal 2024 | 636.07 | 6.88% | 2,374.50 | 25.68% | 4,086.07 | 44.19% |
| Fiscal 2023 | 1,052.94 | 5.92% | 4,495.75 | 25.27% | 7,453.95 | 41.90% |
Significant proportion of our total revenue have historically been derived from a limited number of Customers. The % of Contribution of our Customers vis a vis the revenue from operations for the Fiscal 2025, 2024 and 2023 are as follows: in Lakhs)
| Period | Revenue from Largest Customer | % Contribution of largest customer to revenue from operations | Revenue from Top 5 Customers | % Contribution of top 5 to revenue from operations | Revenue from Top 10 Customers | % Contribution of top 10 to revenue from operations |
| (Rs.) | (Rs.) | (Rs.) | ||||
| Fiscal 2025 | 3,539.91 | 18.58% | 6,418.07 | 33.68% | 8,043.13 | 42.21% |
| Fiscal 2024 | 1,360.94 | 13.32% | 3,294.36 | 32.23% | 4,540.85 | 44.43% |
| Fiscal 2023 | 1,433.30 | 7.58% | 4,538.30 | 24.01% | 6,903.99 | 36.53% |
Status of any publicly announced new products or business segments
Please refer to the chapter titled “Our Business” beginning on page 115Error! Bookmark not defined. of this Draft Red Herring Prospectus for new products or business segments.
Seasonality of business
Our business is not seasonal in nature.
Competitive Conditions
Competitive conditions are as described under the Chapters titled “Industry Overview” and “Our Business” beginning on pages 100 and 115 respectively of this Draft Red Herring Prospectus.
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