Supremex Shine Management Discussions


INDUSTRY STRUCTURE AND OUTLOOK

The transportation sector in India is large and diverse, serving the needs of over 1.1 billion people. In 2019-2020, it contributed a significant 5.2% to the nations GDP, with road transportation being a major part of it. Good physical connectivity in both urban and rural areas is crucial for economic growth and improving access to labour markets. India is one of the largest countries in the world, with a population of approximately 140 crores spread across 28 states, 755 districts, and more than 4,000 cities. Transportation plays a crucial role in the lives of millions of Indians, as 30 to 40 crore people travel daily. A robust transportation system is the lifeline of the nation, connecting people, goods, and services across cities, states, and districts. India boasts of a comprehensive transportation network, which includes 1.4 lakh km of national highways, 7,337 railway stations, and 140 airports. These are used for traveling within the country, particularly for long-distance routes. A more efficient transportation system helps in connecting people, communities, and businesses and is essential for economic growth and development. A well-connected transportation network provides access to employment, educational, recreational, and medical facilities, which can help to reduce poverty and improve the standard of living for millions of people.

However, high levels of mobility in Indian cities have led to a crisis characterized by congestion, environmental pollution, traffic fatalities, imported fuel expenses and taxes and inequity.

As Indian cities continue to spread outward, those who cannot afford motorized transport will be increasingly put at a disadvantage and cut off from essential sites and activities in the city, such as employment, recreation, education, medical care, and more. It is important for the Indian government to address these mobility problems and provide accessible transportation options to all segments of the population.

BUSINESS SEGMENT 40

aerpace - main components (Intellectual Property)

The aerpace project consists of four main components:

Superwing

The Superwing is a technologically advanced flying vehicle capable of carrying a payload of 500-1000 kgs. It is designed with features like autonomous flying, hydrogen fuel, collision detection, advanced fire suppression system, safety parachutes and airbags. It comes in different forms, including aerWing for private transportation, aerTaxi for public transportation, aerAmbulance for medical emergencies, and aerCargo for domestic perishable logistics.

Supercar

The Supercar is a fully electric, light weight vehicle that is specifically designed for use with the Superwing. It is built with cutting-edge technologies like swappable batteries, autonomous driving and AI, and is fully integrated into the aerpace ecosystem for ease of use and comfort.

Aerdock

The Aerdock is a station for the Superwing and Supercar, much like what a station is for trains or an airport is for airplanes. The Aerdock is designed to be pro-green and will be built on 20 acres of land. It will have a hydrogen plant that generates its own fuel and electricity, and will also have a gaming zone, food court, shopping areas, and a wellequipped medical and national security emergency response center.

The aerVerse

The aerVerse is the software ecosystem that integrates and operates all of the above components. It is responsible for maintaining records, controlling the autonomous flights, monitoring the individual components, and ensur-

Superwing 41

Superwing is a revolutionary transportation system that is designed to provide a unique and seamless travel experience. Its ultra-light and incredibly strong design is engineered for unmatched balance and agility, allowing it to reach impressive heights of 3000-9000 feet from ground level. The Superwing is a game-changer in the transportation sector and provides an innovative solution to the mobility problems faced by Indian cities. Superwing is the perfect solution for people who are looking for a faster, safer, and more efficient mode of transportation that is also eco-friendly and sustainable.

1

2

aerWing

aerTaxi

With the private transportation principles at its

A collective economic travel, that falls into

core, the Superwing provides its users with the

public transport category, whereby the Super-

comfort and privacy of their own supercar and

wing can accommodate 6 passengers making

takes them from one aerdock to another in a

aerpace available to consumers enabling them

swift and convenient manner.

to travel Intracity and Intercity between
200kms to 800kms.

3

4

aer Assist

aerCargo

Medical emergencies need immediate

This will be an evolution for our domestic perish-

response - aer ambulance is swift and will be

able logistics market, as every farmer will be

ideal in cases where the patients are either

able to affordably transport their goods across

injured and critical, stuck in traffic or in a

the country in the lowest possible time and

remote location. Superwing will be a

positively meet the growing demands. As we

game-changer in the medical industry, imagine

see a surge in drone technologies being used

not only vaccines and medical aids supply but

for the betterment of agriculture and other

also doctors will be able to reach remote and

industries, we feel it is equally important for

rural locations for medical attention on time.

produced and perishable goods to reach on
time to avoid wastage and losses incurred.

Supercar

The Supercar is a specially designed vehicle that is integrated with the Superwing drone for seamless flying capabilities. Its lightweight construction, coupled with advanced battery swapping technology, allows for efficient transformation from a regular car to an airborne vehicle. The cars materials are deliberately chosen to prioritize weight reduction, making it an ideal Personal Utility Vehicle.

Heres how it works: You drive the Supercar like a regular vehicle to the nearest aerDock and park it on a specialized platform. At the aerDock, the batteries of the car are removed using our cuttingedge swapping robotics mechanism. The car is then transported and docked onto the Superwing drone.

The Superwing drone carries your car to the desired destination, where it is placed onto a platform. Our specialized battery swapping robotics add new batteries to the car, preparing it for the drive. Once the battery swapping process is complete, you can drive the car out of the parking lot and use it like a conventional automobile.

The Supercar boasts futuristic features, such as face ID recognition to start the car, and it operates solely on electric power. It is equipped with Lithium-ion batteries, offering a range of 500 kilometers with a battery capacity of 70 kWh. Initially, the car is shipped with a 35 kWh battery, providing a range of 250 kilometers. However, you have the option to add a range extender battery of 35 kWh, which doubles the range to 500 kilometers.

In summary, the Supercar combines advanced technology, lightweight design, and efficient battery swapping mechanisms to provide a unique and versatile transportation solution for the future

UNIQUE SELLING POINT

The unique selling points of the "aerpace" project are:

Eco-friendly

Accessibility

The project is designed with an eco-friendly approach, using hydrogen fuel and generating its own electricity, making it self-sustaining and reducing the carbon footprint.

The project aims to build an average of 2 aerdocks in every district, making it accessible to a large number of people.

Advanced technologies

Integration

The project uses advanced technologies like autonomous flying, hydrogen fuel, collision detection, and safety parachutes, making it safer and more efficient.

The project is integrated with an eco-system software which operates all the components smoothly, providing efficient and seamless operations.

Increased convenience

Healthcare

The project provides a new mode of transportation that is faster, more comfortable and accessible, reducing travel time and increasing efficiency.

The project also includes an aerAssist component, which will help improve medical services by providing swift and immediate response to emergencies.

Multi-faceted

Increased economic growth

The project includes various components like Superwing, Supercar, aerDock, and aerVerse, which together create a comprehensive transportation ecosystem.

The project will positively impact the economic growth and development of the country, by improving transportation and logistics.

SOCIAL BENEFITS

The aerpace project will bring numerous social benefits to human life and the economy of the country. These benefits include:

Efficient Transportation

Improved Infrastructure
The combination of Supercar and Superwing will provide fast and efficient transportation, reducing travel time and improving mobility. The construction of aerDock will provide much-needed infrastructure, including a gaming zone, food court,shopping areas, and medical emergency response centers.ms in rural areas.

Environmentally Friendly

Job Creation

The use of hydrogen fuel and self-sustain- The construction and operation of the
ing aerdock with its own hydrogen plant will aerpace project will create new job opportu-
reduce carbon emissions and promote a nities, boosting employment and supporting
cleaner environment. the local economy.

Improved Medical Emergency Response

Better Quality of Life
The aerAssist service will provide swift and The ease of travel and efficient transporta-
immediate medical attention, especially in tion will improve the quality of life for citizens,
remote and rural locations. allowing them to spend more time with family and friends, pursue hobbies and interests, and be more productive in their daily lives.

Boost to Agriculture and Domestic Logis-

tics

Power Generation
The aerCargo service will enable afford-
able transportation of perishable goods, reducing wastage and promoting the growth of the agriculture industry.

Economic Growth and Development

Better transportation will have a direct

The solar panels on the roof of aerDock will generate 3 mega-watts of electricity, helping to resolve power problems in rural areas.
positive impact on the economic growth and development of the country.

Strong execution and implementation capabilities 45

We have strong execution capabilities. Owing to the vast experience of our Management Team and having technologically advanced, we believe that we are in a position to meet the requirements of our targeted customers.

OUR BUSINESS STRATEGIES

Strengthen internal systems and continue to focus on technology and operational efficiency:

Information technology is a part of almost every aspect of our operations. Our growing dependence on IT infrastructure, applications, data management and other internal processes require us to ensure the reliability and functionality of our IT systems. We intend to strengthen our IT systems and other internal processes to reduce manual intervention, improve reliability and efficiency of our business. Given the nature of our industry, cost competitiveness is a key component of our success. We believe we have low execution costs which is partly attributable to our integrated operations and investment in technology.

Develop client relations

We plan to grow our business primarily by growing the number of client relationships and service offerings, as we believe that increased client relationships will add stability to our business. We aim to provide for fast and efficient execution of client requirements. Long-term relations are built on trust and continuous meeting with the requirements of the customers.

Further Investing in technology/ Research and development

Delivering the solution on time and in compliance with our customers requirements has always been our priority; we strive to bank on it in future by investing time and money in research and development of more advanced level robotic machines. Technologically modern and advanced machines are a key factor in delivering the solution on time. By investing in technology, we aim to reduce the time of project execution

Continue to focus on providing quality service

End user satisfaction in service industry is the epicentre of growth. Our goal is to provide better services to the customers and thereby build long-term sustainable business relationships with our customers to generate increasing revenues. In addition, we intend to continue to develop modernised robots/ machines for providing better facilities in lesser time. Our one of the significant business strategy is to continue providing high quality solutions thereby maximizing customer satisfaction.

Pursue strategic acquisitions

In order to expand, we seek to identify acquisition targets and/or joint venture partners whose resources, capabilities, technologies and strategies are complementary to and are enabling us to establish our presence in new geographical locations and acquisition of new IT technologies..

Brand Image

We would continue to associate ourselves with corporate and quality customers and provide services to their utmost satisfaction. We are highly conscious about our brand image and intend to have our brand building exercise by providing quality services to the satisfaction of the customers.

SWOT ANALYSIS

Strenghts

Threats

• Sustainable Vision

• Experienced Promoters

• Quality Services

• Significant Reputation

• Technology Dependency

• Operational Ineffectiveness

• Competitive Industry

Opportunities

Weakness

• Use of information technology at large scale

• IT related products/ services will be used in future at large scale.

• Dependency on Information Technology.

• Unstable and Changing Market Demand

OPPORTUNITIES AND THREATS

Opportunities

The transportation sector in India is large and diverse, serving the needs of over 1.1 billion people. In 2019-2020, it contributed a significant 5.2% to the nations GDP, with road transportation being a major part of it. Good physical connectivity in both urban and rural areas is crucial for economic growth and improving access to labor markets.

• Introduction: India is one of the largest countries in the world, with a population of approximately 140 crores spread across 28 states, 755 districts, and more than 4,000 cities.

• Significance of Transportation: Transportation plays a crucial role in the lives of millions of Indians, as 30 to 40 crore people travel daily. A robust transportation system is the lifeline of the nation, connecting people, goods, and services across cities, states, and districts.

• Infrastructure Overview: India boasts of a comprehensive transportation network, which includes 1.4 lakh km of national highways, 7,337 railway stations, and 140 airports. These are used for traveling within the country, particularly for long-distance routes.

• Importance of Efficient Transportation: A more efficient transportation system helps in connecting people, communities, and businesses and is essential for economic growth and development. A well-connected transportation network provides access to employment, educational, recreational, and medical facilities, which can help to reduce poverty and improve the standard of living for millions of people.

However, high levels of mobility in Indian cities have led to a crisis situation characterized by congestion, environmental pollution, traffic fatalities, imported fuel expenses and taxes and inequity.

As Indian cities continue to spread outward, those who cannot afford motorized transport will be increasingly put at a disadvantage and cut off from essential sites and activities in the city, such as employment, recreation, education, medical care, and more. It is important for the Indian government to address these mobility problems and provide accessible transportation options to all segments of the population.

RISKS AND CONCERNS 47

The Company is exposed to risks arising out of the dynamic macro-economic environment as well as from internal business drivers. These could adversely impact its ability to create value over the short, medium and long-term. Your Company continuously monitors and revisits the risks associated with its business. It has institutionalized the procedure for identifying, minimizing and mitigating risks and the same are reviewed periodically. The Companys Structured Risk Management Process attempts to provide confidence to the stakeholders that the Companys risks are known and well managed. The management of the Company reviews the risk management processes and implementation of risk mitigation plans. The processes are continuously improved. Risk Management comprises three key components which are as below:

• Risk identification

• Risk assessment and mitigation

• Risk monitoring and assurance

The risk mitigation plans are reviewed regularly by the Management and Audit Committee of your Company.

INTERNAL CONTROL SYSTEM & ADEQUACY

The Internal Control System facilitates the effectiveness and efficiency of Company operations and ensures the reliability of financial information and compliance with laws and regulations. In particular, the accounting control system is an important element of the Internal Control System as it helps ensure that the Company is not exposed to excessive financial risks and that financial internal and external reporting is reliable.

Your Company has robust internal audit and control systems. They are responsible for independently evaluating the adequacy of internal controls and provide assurance those operations and business units adhere to internal policies, processes and procedures as well as regulatory and legal requirements. Internal audit team defines and review scope, coordinates and conducts risk based internal audits with quarterly frequency across Company through their audit firm. Existing audit procedures are reviewed periodically to enhance effectiveness, usefulness and timeliness. The Internal control procedures include proper authorization and adherence to authorization matrix, segregation of roles and responsibilities, physically verification, checks and balances and preventive checks on Compliance risk and overseeing of periodical financials etc.

Internal audit entails risk assessment and detailed verification of processes, adequacy of maintenance of accounting records, documentation and supporting, authorizations, review of internal controls, compliance with management policies and laid down procedures, compliance with applicable accounting standards and to verify adherence with applicable statutes, rules, regulation, byelaws, and circulars of the relevant statutory and regulatory authorities.

HEALTH, SAFETY AND ENVIRONMENT

Your Company is committed to globally accepted best practices and compliance with applicable health, safety and environmental legislation and other requirements. In order to ensure effective implementation of practices, the management of the company have implemented a safety, health and environment policy wherein we have committed to, inter alia, the maintenance of a safe workplace and providing the necessary training to employees in workplace.

HUMAN RESOURCES AND INDUSTRIAL RELATIONS

The Company takes pride in the commitment, competence and dedication of its employees in all areas of the

48

business. The Company has a structured induction process at all locations and management development programs to upgrade skills of managers. Objective appraisal systems based on key result areas (KRAs) are in place for senior management staff. Human resource is considered as key to the future growth strategy of the Company and looks upon to focus its efforts to further align human resource policies, processes and initiatives to meet its business needs. In order to focus on keeping employees abreast of technological and technical developments, the Company provides opportunity for training and learning. The overall Industrial relations atmosphere continued to be cordial.

MATERIAL DEVELOPMENT IN HUMAN RESOURCE

Employees are the valuable assets and the strength of an organisation in its growth, prosperity and development. Your Company has a team of qualified and dedicated personnel who have contributed to the growth and progress of the Company. Necessary training is being imparted to the employees and various seminars and workshops are being coducted to continuously hone their skill

KEY FINANCIAL RATIOS

Ratios

FY 2022-23 FY 2021-22

Interest Coverage Ratio

2.38 NA

Current Ratio

5.44 35.88

Debt Equity Ratio

0.07 NA

Operating Profit Margin

NA NA

Net Profit Margin

0.06 -2.23

Debtors Turnover Ratio

NA NA

SUMMARY OF “AERVERSE” PROJECT

Difficulties related to transportation system

The Importance of Time in Our Lives

Can we truly own time? The answer is no. When we dont have control over something, we tend to neglect it. Today, do we have enough time for our family, friends, and ourselves? The answer is no, as we are constantly on the move in a world that is moving at an unprecedented pace.

The Commuting Challenge

One of the major challenges in modern cities is the traffic congestion caused by road vehicles. The roads that were built a long time ago are simply unable to handle the high volume of cars, trucks, and other vehicles that compete for space. Furthermore, the majority of these land-based vehicles run on fossil fuels and emit harmful substances, even when stationary. These substances include carbon monoxide, which is toxic and odorless, hydrocarbons like

soot that become suspended in the air. 49

Remote Accessibility

Issues Another problem is the difficulty in reaching remote areas, as building roads and rails is not always efficient or economical. It takes years to build these infrastructures, not to mention the time and resources required for maintenance, and the decades of patience required to recover the investment. This has resulted in a significant imbalance in our economy.

Medical and Logistics

Inaccessibility The third challenge is the lack of infrastructure in remote and rural areas, which makes it difficult to provide medical services and transportation for perishable goods. Improving connectivity in these areas not only enhances the economic growth of the region, but also boosts tourism.

The Need for Connectivity

We need to connect every district in our country in the fastest and most economical way to improve travel, trade, and logistics for the benefit of our economy.

The Solution for transportation system:

The use of transportation systems has long been a hallmark of human progress. However, the exponential growth of populations and rapid urbanization in recent years has put immense pressure on public transportation and freight traffic, causing challenges for local governments and impacting economies. Considering these challenges, experts in the field are exploring new possibilities in nearground spaces (NGS) as an alternative to traditional modes of transportation.

The advent of passenger drones and flying cars has the potential to revolutionize the transportation industry and drive economic growth and development. As the demand for logistics and transportation increases in a rapidly growing population, the utilization of both air and ground vehicles is becoming increasingly important. To achieve a rapid return on investment, its necessary to adopt a solution that is efficient, cost-effective, and quick to construct with optimal resource utilization.

“Mark my words. A combination of airplane and motorcar is coming. You may smile, but it will come.”

For and on behalf of the Board of Direct

ors

Mrs. Amisha Milan Shah

Mr. Milan Bhupendra Shah

Director

Managing Director

DIN: 09523075

DIN: 08163535

Date: 2nd September 2023

Place: Mumbai