Tiger Logistics (India) Ltd Management Discussions.

MANAGEMENT DISCUSSION AND ANALYSIS

Overview and Industry Structure and Developments:

Tiger Logistics is a leading logistics company in India. Your company offers various services to clients such as transportation, customs consultancy, customs clearance, International Freight Forwarders and successfully operates in many cities such as Mumbai, Kutch, Ludhiana, Kolkata, Jaipur, Mundra, Veraval, Ahmedabad, Pune, Chennai etc. Your company opened offices in Singapore and in UAE as well in order to tap more international market. Your company has started tapping defence sector and import shipment as well.

Tiger Logistics has emerged as a trailblazer in providing both inbound and outbound logistics solutions to various large corporate and multinational companies in India and abroad. Tiger Logistics is firmly built on belief of offering unmatched quality services, driven by strong expertise and experience in providing customized and personalized services.

OPPORTUNITIES AND THREATS

RISKS AND CONCERNS

The Company faces the following Risks and Concerns;

OPPORTUNITIES AND THREATS

RISKS AND CONCERNS

The Company faces the following Risks and Concerns;

Economic Risk

Indian Logistics Industry has shown improvements in Logistics Performance Index from 54in in 2015-16 to 44th rank in 2017-18 worldwide. The implementation of GST, Removal of Octroi Tariffs, 25% increase in axle load limits, E-Way Bill exercises, Infrastructure development, Ports and Smart Cities Development, Make in India, PPP Model & Road and Highways speedy betterment are some of the factors which have provided tailwinds but in spite of these factors economic risks are present in various situations. The industry is lacking by new job creations, money revolved in the market are stuck with so many places and planning’s. These factors are growth prohibited and somehow improvements got barred due to these problems. The Government of India has doing its best to improvise with current situations and try to empowering the nation with distinct abilities in every sector.

Competition Risk

The industry demands manpower and in better words we can say skilled manpower. This would be the requirement of Indian logistics sector at present time and for coming years. At International level logistics sector is improving only because of better manpower and skill trainings. The Government of India has also focussed on skill trainings and employment generations. The day of reckoning for logistics is here, and betting big on this sector will surely translate into a large number of jobs for India. This can be a major growth impediment, and, therefore, this makes it imperative for the government, training institutions, logistics companies and sectorial skill council to build training capacity and offer industry-relevant skills to candidates. Apprenticeship is one of the proven models of training that ensures skilled workforce as per the demands of the industry and emerging job roles. The risk of competition can be overcome through better preparations, trainings and skilled employments.

Execution Risk

Historically, logistics has been a functionally focused industry but customers are increasingly asking their logistics vendors to speak their distinct industry language, and not just sell space or trucks. The 3PL (third-party logistics) business has grown profitably on the back of its focus on auto, retail, electronics or e-commerce sectors. Our Company contributes in developing the nation through distinct sectorial projects. Our implementation schedules are in line with the plans and we are executing these plans very correctly. Back up or Emergency and Contingency plans are in place to prevent or minimize business interruptions. Therefore, we do not expect this risk to affect us materially in the future. With superior methodologies and improved processes and systems, the Company is well positioned to lead a high growth path.

Outlook

Tiger Logistics India Limited is one of the fastest growing Indian Logistics Companies, registered as an AEO (Authorised Economic Operator). We are focussed to do unique practices which will be industry driven and support industry growth in coming years. Powerful information and technology initiatives secured our data and our customer’s data, we are at minimum risk level and improving day by day. Our new growth initiatives are empowering the grass root levels of finances and strengthen our export and imports. We are doing well in present scenario and proudly making an established good future for our stakeholders.

OPPORTUNITIES

Following are the prospective opportunities

The Indian logistics industry is characterized by its high degree of fragmentation. Country’s diverse geographical and socio-economic features, huge retail network and infrastructure limitations enable most of the logistics service providers in the country to provide the entire gamut of logistics services.

The primary reason for the growth in the Indian logistics industry can be attributed to increasing trade, reforms in government policy, increased government spending on infrastructure and rise in domestic consumption. Over the years India has emerged as a manufacturing hub and growth for service sector like retail. The logistics sector employs more than approximate 45 million people and is growing at a stupendous rate. It is expected that the demand for transport and logistics will continue to grow as the Indian economy is on a high growth trajectory, the domestic market is unsaturated and the country needs investment in transport infrastructure. Few of the opportunities are as follows:

• General economic and business conditions in the markets in which we operate and in the local, regional, National and International economies;

• Changes in laws and regulations relating to the sectors/areas in which we operate;

• Increased competition in logistics industry;

• Our ability to successfully implement our growth strategy and expansion plans;

• Our ability to meet our capital expenditure requirements;

• Our ability to attract and retain qualified personnel;

• Changes in political and social conditions in India, the monetary and interest rate policies of India and other countries;

• The performance of the financial markets in India and globally;

Internal Control Systems and their adequacy

Your Company has a proper adequate internal control system and code of conduct to ensure that all the assets are safe guarded and protected against the loss from unauthorized use or disposition and that transactions are authorized, recorded and reported correctly.

The internal control is supplemented by an extensive internal audit, periodical review by the management and documented policies, guidelines and procedures. The internal control is designed to ensure that the financial and other records are reliable for preparing financial statements and other data and for maintaining accountability of assets.

Segment–wise performance

It has been explained in the notes to account of the financial statement.

Discussion on financial performance with respect to operational performance.

It has been explained in the director’s report.

Development in HR

Your company has laid emphasis on improving the skills of its human resources towards achieving better performance & improving quality. Your Company has always emphasized on the principle that Human Resources are the best Assets for Organization. Thus we keep on investing in them through modern trainings and seminars and various performance appraisal programs.

By order of the Board
For Tiger Logistics (India) Limited
Sd/-
Harpreet Singh Malhotra
Chairman Cum Managing Director
DIN: 00147977
Address: D-174, GF, Okhla Industrial Area,
Place: New Delhi Phase-1 New Delhi -110020
Date: 14.08.2018