Pulsar International Ltd Management Discussions

1. Market Overview: The global goods trading industry is experiencing a dynamic phase, characterized by rapid changes in consumer behavior, technological advancements, and evolving regulatory frameworks. The ongoing recovery from the global pandemic, coupled with geopolitical uncertainties and supply chain disruptions, has significantly influenced market conditions. Despite these challenges, the industry has shown resilience, with a steady demand for essential goods, particularly in the FMCG, pharmaceuticals, and electronics sectors.

In the domestic market, economic indicators suggest a gradual recovery, supported by government initiatives aimed at boosting economic growth. Consumer sentiment is improving, and there is an increasing demand for quality products, driven by rising disposable incomes and urbanization. However, inflationary pressures and currency fluctuations continue to pose challenges.

2. Industry Structure and Developments: The goods trading industry is highly fragmented, with a mix of large multinational corporations and small-to-medium enterprises (SMEs) operating within the market. The industry is witnessing a shift towards digitalization, with e-commerce platforms playing a crucial role in shaping buying behavior.

The rise of omni-channel retailing has also transformed the traditional trading model, requiring companies to adapt to new sales and distribution channels.

Developments in supply chain management, including the adoption of advanced technologies like Al, blockchain, and loT, are enhancing efficiency and transparency. Additionally, there is a growing focus on sustainability, with companies increasingly adopting eco-friendly practices to meet consumer expectations and regulatory requirements.

3. Regulations: The regulatory environment in the goods trading industry is complex and varies across regions. Key regulations impacting the industry include import/export policies, tariffs, and anti-dumping duties. Compliance with environmental regulations, such as those related to packaging waste and carbon emissions, is becoming increasingly important. Additionally, data protection laws are influencing the way companies manage customer information, particularly in the e-commerce space.

Governments are also introducing policies to promote local manufacturing and reduce dependency on imports, which could create opportunities for domestic players but also pose challenges for those reliant on international trade.

4. Opportunities and Threats:

Opportunities: Digital Transformation: The shift towards online retail and the adoption of advanced technologies provide opportunities to enhance operational efficiency and customer engagement. Rising Consumer Demand:

Growing disposable incomes and urbanization are driving demand for quality products, particularly in emerging markets.

Sustainability: The increasing focus on sustainable practices presents opportunities for companies to differentiate themselves and meet evolving consumer expectations.

Threats:

Supply Chain Disruptions: Ongoing geopolitical tensions and the lingering effects of the global pandemic continue to impact supply chains, leading to increased costs and delays.

Regulatory Changes: Frequent changes in trade policies and regulatory requirements can create uncertainties and impact profitability

Inflationary Pressures: Rising raw material costs and currency fluctuations pose a threat to margins. S

5. Outlook

The outlook for the goods trading industry remains cautiously optimistic. While challenges such as supply chain disruptions and inflationary pressures persist, the industry is expected to benefit from the ongoing economic recovery and the growing demand for quality products. Companies that embrace digital transformation, focus on sustainability, and adapt to changing consumer preferences will be well-positioned to capitalize on growth opportunities.

In the domestic market, government initiatives aimed at boosting manufacturing and promoting exports are likely to support industry growth. However, companies will need to navigate regulatory complexities and manage risks ineffectively to achieve sustainable growth. :

6. Risk and Concerns

The key risks facing the company include:

Supply Chain Risk: Disruptions in the supply chain due to geopolitical tensions, natural disasters, or pandemics can impact the availability of goods and increase costs.

Regulatory Risk: Changes in trade policies, tariffs, and regulatory requirements can affect the companys operations and profitability.

Market Risk: Fluctuations in consumer demand, driven by economic conditions or changes in consumer preferences, can impact sales and revenue.

Currency Risk: Currency fluctuations can impact the cost of imports and exports, affecting profitability. <

Cyber security Risk: As the company increasingly relies on digital platforms, the risk of cyber-attacks and data breaches becomes more significant.

7. Internal Control Systems and Their Adequacy

The company has established robust internal control systems to ensure the accuracy and reliability of financial reporting, compliance with laws and regulations, and the efficiency of operations. These systems are regularly reviewed and updated to reflect changes in the operating environment and to mitigate emerging risks.

The internal audit function plays a critical role in assessing the adequacy of these controls and ensuring that any deficiencies are promptly addressed. The audit committee reviews the effectiveness of the internal control systems and provides recommendations for improvement.

8. Discussion on Financial Performance with Respect to Operational Performance

During the financial year, the company demonstrated resilient operational performance despite the challenging market conditions. Revenue growth was driven by strong demand in key product categories, particularly in the FMCG and electronics sectors. However, rising input costs and supply chain disruptions impacted margins.

The company implemented several cost-saving initiatives and optimized its supply chain to mitigate the impact of these challenges. Investments in digital platforms and e-commerce capabilities also contributed to revenue growth and improved customer engagement.

9. Material Developments in Human Resources/lndustrial Relations Front, Including Number of People Employed

The company recognizes the importance of human capital in driving its success. During the year, several initiatives were undertaken to enhance employee engagement, productivity, and well-being. The company invested in training and development programs to upskill employees and equip them with the necessary skills to thrive in a rapidly changing industry.

Industrial relations remained stable throughout the year, with no major disruptions. The company continues to foster a collaborative and inclusive work environment, with a focus on diversity and equal opportunities.

As of the end of the financial year, the company employed a total of 6 employees across various functions, including sales, operations, logistics, and support services. The company is committed to attracting and retaining top talent to support its growth objectives.