Rajvi Logitrade Ltd Management Discussions

Your Directors have pleasure in presenting the Management Discussion and Analysis report for the year ended on 31^st March 2025.

INDUSTRY STRUCTURE AND DEVELOPMENT:

Indias logistics sector is the backbone of its economy, facilitating the movement of goods and services across vast geographical regions. The industry is rapidly evolving, driven by infrastructure advancements, policy reforms, digitalization, and sustainable initiatives. With the implementation of projects like PM Gati Shakti and dedicated freight corridors, India is moving towards an integrated and efficient logistics ecosystem. In recent years, there have been significant developments in infrastructure, digitalisation, and sustainability within Indias logistics sector.

Initiatives like "Make in India" and the "Unified Logistics Platform" (ULIP) is promoting transparency through digitisation, leading to faster processing, optimized costs, and improved shipment tracking. Additionally, adopting technologies such as automation, robotics, artificial intelligence (AI), Consolidation of warehousing and the implementation of Fastag-enabled expressways further enhance efficiency. The logistics industry is actively embracing green technology, including alternative fuel vehicles and renewable energy, to minimise emissions and enhance sustainability. These initiatives, supported by GOI, are crucial in creating a greener and more efficient logistics ecosystem.

OPPORTUNITIES AND THREATS:

The Transportation and Logistics business is evolving, keeping in line with the technological and infrastructural developments and various policy reforms taken by the government, including the introduction of e-way bills, fast-tag, e-invoicing, and GPS-based toll collection is playing a critical role. Various Policy initiative of the Government of India to improve sector create Optimistic future for the Transport industry.

The logistics industry in India faces several key challenges that impact its operations and overall efficiency. Transportation costs, including fuel expenses, have a significant impact on logistics operations. Fluctuating fuel prices can make it challenging to predict and manage costs effectively, poor infrastructure of roads, it is also exposed to market risks and financial risks like sudden changes in the Government policies and laws, increase in the prices of component parts and fuel, increase in the hiring charges of vehicle etc.

Recognizing the crucial significance of the transportation industry consistent attempts are being made by government through various infrastructure projects and policies to improve the efficiency and eliminate the growth barriers.

RISKS MANAGEMENT AND CONCERNS:

Company believes that effective and sustained risk management, which includes identifying significant risks the Company is or may be faced with and developing risk assessment and mitigation procedures to manage such risks. Key risks we face and our strategies to mitigate them:

Transitional Damage Risk: The potential impacts include the threat of destruction, cargo loss due to common transit dangers such as pilferage, shrinkage, and unpredictable circumstances like accidents. To mitigate these, all our trucks are insured against loss or damage caused by accidents or other transit hazards.

Fluctuating Fuel Price Risk: Fuel price fluctuations can significantly influence our profitability and operations. In particular, the cost of fuel has increased in the recent years regularly and fluctuates significantly due to various factors which are beyond our control. We mitigate this risk by adopting a policy of frequent freight rate revisions to account for variations. However effect of the same cannot be avoided altogether.

The Companys business operations are totally dependent on the road network in India. There are various factors that affect the road network such as political unrest, bad weather conditions, natural calamities, regional disturbancesor even third party negligence that can affect the condition of vehicles and cargo. Even though the Company undertakes various measures to avoid or mitigate such factors to the extent possible, some of these have the potential of causing extensive impact on operations and assets. Various other risks being faced are Infrastructure risk, competition risk, Business continuity risk involves financial and non-financial losses, threats or risks that disrupt the functioning of a business.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

The internal control system is looked after by Directors themselves, who also look after the day to day affairs to ensure compliances of guidelines and policies adhere to the management instructions and policies to ensure improvements in the system. Internal control measures are composed of numerous rules and procedures established by management which covers significant activities such as, operations, finance and human resources.

As regards the operation of internal controls, majority of these have been inbuilt in the internal procedures established by the organization which are also documented internally. These include in details the methodology to be adopted right from transacting bookings, effecting consignment deliveries, etc. and also describes the practices to be followed for the smooth operation of business. Head of the Department adhere to the set procedure deviation from the laid down procedure is escalated to the Functional heads as also directly to the Executive Directors. The Company has proper and adequate internal control system commensurate with the size of the business operations. Efforts for continued improvement of internal control system are being consistently made in this regard.

OUTLOOKS

The management is focused and determined to evaluate the business opportunities so as to make the company operational while constantly trying to create value for its stakeholders. During the year under review, the Company has managed to achieve profit of Rs. 76.93/- Lakhs from Transportation Business. Management is optimistic and is constantly indulged to expand the business and increase operating efficiencies. Amid changing market dynamics, the Company remains vigilant, actively monitoring external factors like inflation, Industry Competition, and geopolitical risks to mitigate potential challenges. Furthermore, despite the complexities of the business environment, RLL maintains an optimistic outlook, in both revenue and operating margins over the medium term.

FINANCIAL AND OPERATIONAL PERFORMANCE

The total revenue increased by 39.24%, reaching Rs. 4264.10 lakhs. Additionally, the earnings before interest and depreciation EBITDA amounted to 202.12 Lakhs, compared to 101.93 Lakhs in the previous financial year.

Change in Key Financial Ratios and Reasons Thereof

During the financial year 2024-2025, Companys key financial ratios exhibited an improvement over the previous year. Debtor turnover ratio declined indication longer credit period. Companys current ratio strengthened 1.58 in the financial year 2023-24, to 1.67 signaling a relatively better liquidity position with more current assets to cover short term liabilities. Furthermore, the debt-to equity ratio increased, since Company has availed loan for procuring fleet and expansion of business. Moreover, companys return on equity improved, because of increase in profit.

REVENUE FROM OPERATIONS

In FY2025, Company has earned total income from operation of Rs. 4264.10/- lakhs marking a increase of 37.95% from Rs. 3091.31/- Lakhs in FY2024 mainly driven by raised activity level enabled by operational efficiency and service quality.

EBITDA

The Earnings before interest tax and depreciation (EBITDA) for FY 2024-2025 stood at Rs. 202.12 Lakhs, compared to the previous years figure of Rs. 101.93 Lakhs marking an increase of . Management is striving hard to maintain better performance in future.

Debt and Finance Cost

Company has availed loan for procuring fleet and expansion of business. The debt equity ratio stood at 10.07%.

HUMAN RESOURCES VIS-?-VIS INDUSTRIAL RELATIONS

The Company recognizes the importance of the human resources for its growth and development The Company maintains healthy and motivating work environment through various measures. The employee relationship with the company remained harmonious through the year. As on March 31, 2024, there were 15 employees on the roll of the company.

CAUTIONARY STATEMENT

Statements in the Management Discussion and

Analysis describing the Companys objectives, projections, estimates and expectations may be

‘forward looking statements within the meaning of applicable securities laws and regulations. These statements are not guarantee of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore actual results could differ materially from those expressed or implied. Important factors that could make a difference to the

Companys operations include economic conditions changes in the Government regulations, tax laws, and other statutes and other incidental factors.