suryakrupa finance ltd Management discussions

Your Directors have pleasure in presenting the Management Discussion and Analysis report for the year ended on 31st March 2022.

INDUSTRY STRUCTURE AND DEVELOPMENT:

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. We mitigate this risk by adopting a policy of frequent freight rate revisions to account for variations.

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.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. 17.93/- Lakhs from Transportation Business. Management is optimistic and is constantly indulged to expand the business and increase operating efficiencies.

HUMAN RESOURCES VIS-A-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, 2023, there were 18 employees on the roll of the company.

FINANCIAL AND OPERATIONAL PERFORMANCE

During the year under review, Company has earned total income from operation of Rs. 1612.94/- Lakhs and managed to mark profit of Rs. 17.93/- Lakhs for the financial year ended 31st March, 2023, from transportation business. Management is striving hard to maintain better performance in future.

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.