Globe International Carriers Ltd Management Discussions.
OVERVIEW AND INDUSTRY STRUCTURE AND DEVELOPMENTS:
Globe International Carriers Limited is a leading logistics company across the India. Your company offers various services to clients such as transportation, logistics, we provide integrated end-to-end solutions tailored to our Customers supply chain management needs with a special commitment to industry specific requirements, customs consultancy, successfully operates in many cities.
We serve to a wide range of industries, including metals, textiles, apparels, furniture, appliances, pharmaceutical products, rubber, plastics, wood, food products, glass, telecom products, automotive parts and machinery, etc. Our financial stability, logistics network, cutting-edge IT systems, in-house expertise and excellent customer service is proof of our dedication to be the market leader. These attributes have helped us to be at the forefront in the Industry.
OPPORTUNITIES AND THREATS
RISKS AND CONCERNS
The Company faces the following Risks and Concerns;
Earlier the logistics industry has experienced cyclical fluctuations due to economic recession, downturn in business cycle, fuel shortage, price increase by carriers, interest rate fluctuations, and other economic factors beyond our control. Carriers can be expected to charge higher prices to cover higher operating expenses and our gross profits and income from operations may decrease if we are unable to pass through to our customers the full amount of higher transportation costs. If economic recession or a downturn in our customers business cycles occurs then it may cause to a reduction in the volume of freight shipped by those customers, our operating results could also be adversely affected.
Like in most other industries, opportunity brings with itself competition. Sometimes it leads to price cutting as well. We face different levels of competition in each segment, from domestic as well as multinational companies. However, Globe International Carriers Limited has established strong brand goodwill in the market and a strong foothold in the entire logistics values plectrum. We are working on a blueprint to consolidate our position as the market leader and enter newer segments and offer our customers tailor made logistics services. We have built a strong relationship with most of the leading carriers/liners and as a result are able to obtain competitive commercial terms and operational advantages.
Planning is worthless unless proper execution is not up to the mark. It is not possible to control external risk however with proper planning and execution we can minimize the risk or nullify the same. Your Company has been in the developing mode in the last few years and several more beneficiary projects are in the pipeline for coming years. Any delay in implementation of plan can impact revenue and profit for that period. Our implementation schedules are in line with the plans.
Back up or Emergency and Contingency plans are in place to prevent or minimize business interruptions. Therefore, we do not expect this risk to affect us materially in the future. With superior methodologies and improved processes and systems, the Company is well positioned to lead a high growth path.
Globe International Carriers Limited, is on track to achieve its expansion objectives. There is a tremendous demand for Logistics in India. Hence Globe International Carriers Limited immediate focus will be to bridge this gap by ramping up capacities across the country. This would apply to the Tran sortation division.
Following are the prospective opportunities The Indian logistics industry is characterized by its high degree of fragmentation. Countrys diverse geographical and socio-economic features, huge retail network and infrastructure limitations enable most of the logistics service providers in the country to provide the entire gamut of logistics services. The primary reason for the growth in the Indian logistics industry can be attributed to increasing trade, reforms in government policy, increased government spending on infrastructure and rise in domestic consumption. Over the years India has emerged as a manufacturing
hub and growth for service sector like retail. The logistics sector employs approximate 45million people and is growing at a stupendous rate. It is expected that the demand for transport and logistics will continue to grow as the Indian economy is on a high growth trajectory, the domestic market is unsaturated and the country needs investment in transport infrastructure. Few of the opportunities are as follows:
General economic and business conditions in the markets in which we operate and in the local, regional, National and International economies;
Changes in laws and regulations relating to the sectors/areas in which we operate;
Increased competition in logistics industry;
Our ability to successfully implement our growth strategy and expansion plans;
Our ability to meet our capital expenditure requirements;
Our ability to attract and retain qualified personnel;
Changes in political and social conditions in India, the monetary and interest rate policies of India and other countries;
The performance of the financial markets in India and globally:
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
Your Company has a proper adequate internal control system and code of conduct to ensure that all the assets are safe guarded and protected against the loss from unauthorized use or disposition and that transactions are authorized, recorded and reported correctly.
The internal control is supplemented by an extensive internal audit, periodical review by the management and documented policies, guidelines and procedures. The internal control is designed to ensure that the financial and other records are reliable for preparing financial statements and other data and for maintaining accountability of assets.
It has been explained in the notes to account of the financial statement.
DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE.
It has been explained in the directors report.
DEVELOPMENT IN HR
Your company has laid emphasis on improving the skills of its human resources towards achieving better performance & improving quality. Your Company has always emphasized on the principle that Human Resources are the best Assets for Organization. Thus, we keep on investing in them through modern trainings and seminars.
|On behalf of the Board of Directors|
|For Globe International Carriers Limited|
|(Formerly known as Globe International Carriers Private Limited)|
|Place: Jaipur||Subhash Agrawal|
|(Chairman 85 Managing Director)|
|Address: 703-704, Shree Villa Apartment,|
|A-26-F Bhartiya Path, K.C Road,|
|Bani Park Jaipur 302006|
|Address: 703-704, Shree Villa Apartment,|
|A-26-F Bhartiya Path, K.C Road, Bani Park Jaipur|