Sahara Maritime Ltd Management Discussions

INTRODUCTION:

Our company was originally incorporated as a Private Limited under the name "Sahara Maritime Private Limited" under the provisions of the Companies Act, 1956 and Certificate of Incorporation was issued by the Registrar of Companies, Maharashtra, Mumbai on March 06, 2009. Eventually, the status of our Company was changed to Public Limited and the name of our Company was changed to "Sahara Maritime Limited" vide Special Resolution passed by the Shareholders at the Extra-Ordinary General Meeting of our Company held on February 24, 2023. The fresh Certificate of Incorporation consequent to conversion was issued on April 28, 2023 by the Registrar of Companies, Mumbai. The Corporate Identification Number of our Company is U61200MH2009PLC190786. Further the Company has issued share pursuant to Initial Public Offer (IPO) and listed on SME platform of BSE LTD on 26, December, 2023. Our Company was initially incorporated with conducting the work as custom clearance broker and later moved across domains, geographies, and industries to offer a gamut of services for the logistics industry. We offer our customers, transport management services, and also freight related services. We provide complete range of services like Freight Forwarding (Sea freight, Warehousing, Transportation, Multimodal Transportation, loading/unloading of items to facilitate our customers with end-to-end solutions and other related value-added services

INDUSTRY STRUCTURE AND DEVELOPMENTS

The Indian maritime industry is poised for significant growth, driven by strategic initiatives outlined in the Maritime India Vision 2030. Launched by the Honble Prime Minister of India in March 2021, this vision serves as a comprehensive blueprint for the accelerated and coordinated development of the countrys maritime sector.

The Maritime India Vision 2030 was developed through extensive consultations with over 350 stakeholders, including ports, shipyards, inland waterways, trade bodies, associations, and legal experts. The Vision has identified over 150 initiatives aimed at boosting the sector across various dimensions, including port modernization, digitalization, inland water transport, shipbuilding, and sustainability.

These initiatives are expected to enhance Indias maritime infrastructure, improve operational efficiency, and position the country as a global maritime hub. As the government continues to implement these reforms, the Indian maritime industry is anticipated to see robust growth, creating new opportunities for companies like Sahara Maritime Limited. However, challenges such as port congestion, high logistics costs, and evolving environmental regulations remain key areas to address for the industrys continued progress.

The global maritime industry in FY 2023-24 witnessed both opportunities and challenges as it navigated through the aftermath of the COVID-19 pandemic, geopolitical tensions, and fluctuating demand across various sectors. Global GDP growth remained modest, with advanced economies experiencing slower growth rates while emerging markets showed resilience. The shipping industry, in particular, experienced volatility due to fluctuating oil prices, changes in trade policies, and supply chain disruptions.

OPPORTUNITIES AND THREATS:

Opportunities:

• Optimizing Private Port Operations: Enhancements in the functionality and efficiency of private ports are creating avenues for increased private sector involvement and investment. Streamlined operations and expanded capacities at these ports are expected to reduce bottlenecks and improve overall trade efficiency.

• Strategic Government Programs: Initiatives such as Sagarmala and Bharatmala focus on improving port connectivity and logistics infrastructure. These programs aim to boost the competitive edge of Indian ports, enhance hinterland connectivity, and facilitate smoother cargo movement.

• Advancements in Digital Technology: The shift towards digitalization promises streamlined port operations through automation and real-time tracking. Enhanced data analytics and digital platforms are expected to improve decision-making processes and operational efficiency across the maritime supply chain.

• Compliance with Environmental Standards: The push for adherence to global environmental regulations presents opportunities for investing in green technologies and sustainable practices. Innovations such as cleaner fuels, emission reduction technologies, and eco-friendly vessel designs are becoming increasingly integral to industry operations.

• Expansion into Emerging Markets: The rise of emerging markets offers new avenues for trade and growth. Increased trade with these markets can drive demand for shipping services and open up new revenue streams for maritime companies.

• Infrastructure Development: Ongoing developments in port infrastructure and inland waterways are set to alleviate congestion and enhance logistics efficiency. Modernization projects, such as new port terminals and upgraded inland transport networks, will support the sectors growth trajectory.

Threats:

• Infrastructure Limitations: Persistent issues with inadequate infrastructure and port congestion may impact operational efficiency and extend turnaround times. Delays and inefficiencies at key ports could affect the timeliness of cargo deliveries and increase overall logistics costs.

• Crew Management Issues: The logistics of frequent crew changes and the demand for skilled maritime personnel can pose operational challenges. Ensuring the availability of qualified crew members and managing crew rotations effectively are crucial for maintaining operational continuity.

• Regulatory Changes: Fluctuations in trade policies and regulations can influence shipping routes, cargo volumes, and overall operations. Adapting to regulatory changes and ensuring compliance with evolving international standards are essential for mitigating potential disruptions.

• Inspection and Maintenance Requirements: Regular surveys, inspections, and servicing demands can lead to potential delays and increased operational costs. Ensuring timely maintenance and adhering to regulatory requirements are critical for maintaining vessel safety and performance.

• Security Concerns: Risks such as piracy, cyber threats, and geopolitical tensions pose ongoing challenges to maritime security and operational safety. Implementing robust security measures and safeguarding against potential threats are essential for protecting assets and ensuring safe operations.

• Geopolitical Tensions and Trade Sanctions: Political tensions and trade sanctions can lead to increased shipping costs, disruption of global trade, and financial risks for all parties involved. This can include financial institutions, shipowners, charterers, suppliers, insurers, ports, and cargo owners.

Company Outlook:

Looking ahead, Sahara Maritime Limited remains optimistic about the long-term prospects of the maritime industry. Our Company is well-positioned to capitalize on industry growth trends and emerging opportunities. Our strategic focus on service excellence, technological advancement, and market expansion will drive future success. We are committed to delivering value to our shareholders, clients, and stakeholders while navigating the evolving logistics landscape.

Risk Management

The maritime industry is inherently exposed to various risks, including market, operational, regulatory, and environmental risks. Sahara Maritime Limited has a robust risk management framework in place to identify, assess, and mitigate these risks.

Market Risk: The company is exposed to fluctuations in freight rates, demand-supply dynamics, and changes in trade policies. To mitigate these risks, Sahara Maritime Limited diversifies its client base and engages in long-term contracts.

Operational Risk: The company addresses operational risks through regular maintenance of its fleet, adherence to safety protocols, and investment in technology to enhance operational efficiency.

Regulatory Risk: Compliance with global maritime regulations is critical. The company actively monitors regulatory developments and ensures adherence to environmental, safety, and governance standards.

Material Developments in Human Resources:

Sahara Maritime Limited is committed to creating a work environment that attracts and retains top talent. Our human resource management efforts focus on providing employees with opportunities for growth and development, recognizing and rewarding their contributions, and fostering a culture of collaboration and teamwork. We firmly believe that our human resources are crucial enablers of the companys growth and valuable assets. Consequently, the success of our company is closely aligned with the goals of our workforce. In light of this, we continue to invest in developing our human capital and enhancing our brand to attract and retain the best talent in the industry.

Environment and Safety:

The need for environmentally clean and safe operations is the Companys key priority. The Company policy requires the conduct of all operations in such a manner so as to ensure the safety of all concerned, compliance of statutory requirements for environment protection and conservation of natural resources to the extent possible.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

Sahara Maritime Limited maintains internal control systems that are well-suited to the nature, size, and complexity of its operations. We ensure that our internal controls are rigorously tested and certified by statutory, as well as key business areas, on a routine basis.

Our approach involves regular evaluation and testing of the effectiveness of these controls, with a focus on assessing associated risks and business processes. This process includes benchmarking our controls against industry best practices to ensure they remain current and effective. By upholding a robust internal control environment aligned with industry standards, we effectively manage risks and ensure the smooth functioning of our business operations.

Financial Performance:

During the year under review, the revenue from operations amounted to Rs. 1,350.48 lakhs, while total expenses were Rs. 1,285.11 lakhs. The Company recorded a net profit of Rs. 77.98 lakhs.

Key financial Ratios:

Particular	Numerator	Denominator	As on 31st March, 2024	As on 31st March, 2023
Current Ratio	Current Assets	Current Liabilities	10.38	2.49
Debt-Equity Ratio	Total Debt	Shareholders Equity	0.11	0.33
Return on Equity Ratio	Profit After Tax	Average Shareholders Equity	9.00	25.53
Trade Receivables turnover ratio (in times	Revenue	Average Trade Receivable	3.73	7.28
Trade payables turnover ratio (in times)	Purchase of Services & other Expenses	Average Trade Payables	24.94	58.98
Net capital turnover ratio (in times)	Revenue	Net Working Capital	1.20	5.75
Net profit ratio	Net Profit	Revenue	5.81	4.40
Return on Capital employed	Operating Profit	Total Capital Employed	5.95	29.40

Disclaimer Statement:

The discussion contains forward-looking statements and reflects our current views with respect to future events and financial performance. Actual results may differ materially from those anticipated in these forward-looking statements. No representation is made on the accuracy and comprehensiveness through the same is based on sources believed to be reliable. Utmost care has been taken to ensure that the opinions expressed by us herein contain our view on the significant events having impact on the Companys operations, but it is not exhaustive.

CEO/CFO CERTIFICATION

To,

The Board of Directors Sahara Maritime Limited

Reg: Certificate of Compliance under Regulation 33(2)(a)&17(8) of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015

Pursuant to Regulation 33(2)(a) & 17(8) of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015, We, Sohrab Rustom Sayed, Managing Director and Harish Laxmana Poojary, the Chief Financial Officer (CFO) of the Company do hereby certify to the Board that:

1. We have reviewed financial statements and the cash flow statement for the year ending 31^st March, 2024 and that to the best of their knowledge and belief:

I. These statements do not contain any materially untrue statement or omit any material factor contain statements that might be misleading.

II. These statements together present a true and fair view of the companys affairs and we are in compliance with existing accounting standards, applicable laws and regulations.

2. There are, to the best of our knowledge and belief, no transactions entered into by the company during the year which are fraudulent, illegal or violate the companys code of conduct.

3. We accept responsibility for establishing and maintaining internal controls for financial reporting and that we have evaluated the effectiveness of internal control systems of the company pertaining to financial reporting and we have disclosed to the auditors and the Audit Committee, deficiencies in the design or operation of such internal controls, if any, of which we are aware and the steps we have taken or propose to take to rectify these deficiencies.

4. We have indicated to the Auditors and the Audit committee:

III. Significant changes in internal control over financial reporting during the year;

IV. Significant changes in accounting policies during the year;

V. Instances of significant fraud of which we have become aware and the involvement therein, if any, of the management or an employee having a significant role in the companys internal control system over financial reporting.

For and on Behalf of the Board of Directors of
SAHARA MARITIME LIMITED
Sd\	Sd\
Sohrab Rustom Sayed	Harish Laxmana Poojary
Managing Director	Chief Financial Officer
DIN:01271901	PAN: AQRPP0984D
Date: May 30, 2024
Place: Mumbai