Total Transport Systems Ltd Management Discussions.

Forward looking statement - Statements in this Management Discussion and Analysis of Financial Condition and Results of Operations of the Company describing the Companys objectives, expectations or predictions may be forward looking within the meaning of applicable securities laws and regulations. Forward looking statements are based on certain assumptions and expectations of future events.

The Company cannot guarantee that these assumptions and expectations are accurate or will be realized. The Company assumes no responsibility to publicly amend, modify or revise forward looking statements, on the basis of any subsequent developments, information or events. Actual results may differ materially from those expressed in the statement. Important factors that could influence the Companys operations include changes in government regulations, tax laws, economic developments within the country and such other factors globally.

Pursuant to Regulation 34 of the SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015 the Listed Companies are required to furnish Management Discussion and Analysis Report (MDAR) as a part of Directors Report to the Shareholders.

As per Schedule V of SEBI (Listing Obligations and Disclosures Requirements), Regulations, 2015, Annual Report shall contain the below points in the Management Discussion and Analysis Report (MDAR):

• Industry Structure and developments.

• Opportunities and Threats.

• Segment- Wise or Product- wise performance.

• Outlook.

• Risk and Concern.

• Internal Control System and their adequacy.

• Discussion on Financial performance with respect to operational performance.

• Material developments in Human Resources/ Industrial Relations front, including number of people employed.

1. INDUSTRY STRUCTURE AND DEVELOPMENTS

Indian logistic sector is primarily categorized into four segments comprising transportation (rail, road, air and waterways) warehousing (Container freight stations and inland container depots) freight forwarding and value added logistics. Economic survey of India predicts a whopping $215 billion future for countrys logistics market, booming global e-Commerce shifting sourcing trends, and emergence of new markets are all driving a new preference for Less than Container Load (LCL) with much improvements on security, certainity, and speed.

2. Opportrunity & threats

Opportunity:

- Air freight division started by the Company provides ample growth opportunity.

- Opportunity to get into first mile / shipping of cargo from various parts of the world to India with amazon.

- Entered into contract with amazon for last mile deliveries and looking to expand it to other states too.

Threats:

- Severe drop in global economy.

- Changes in macroeconomic and political conditions in India.

- Competition from local and multinational players.

- Execution risk - transportation of goods become big challenge into freight consolidation activity.

- Regulatory changes.

3. Segment- Wise or Product- wise performance

The Company is engaged in the business of Consolidation/deconsolidation of cargo freight forwarding, logistics, warehousing and transportation. The company is dealing only in this single segment and hence segment wise performance are not applicable to the Company.

4. Outlook

The long term outlook of the companies operating in indian logistics industry is favourable on implementation of GST, successful commissioning of infrastructure projects especially in road, railways and ports increase in participation and investment of international logistics players and adoption to global standards of tracking and tracing mechanism. The near term outlook of the logistics companies expected to be stable on back of steady growth in consumer durables, FMCG, pharmaceutical engineering and other industries.

5. Risk and Concern

Every business associated with some kind of risks or other and yes we are not exceptional to it. We are also facing business risk, operational risk, trade risk, Company specific risk etc. huge working capital requirement is also one of the major concern for the business enterprises. The Company has taken necessary steps to overcome the risk factor and helps the organization to run smoothly.

6. Internal control system

The Company has in place an adequate system of internal control commensurate with its size and nature of its business. These have been designed to provide reasonable assurance that all assets are safeguarded and protected against loss from unauthorized use or disposition and that all transactions are authorized, recorded and reported correctly and the business operations are conducted as per the prescribed policies and procedures of the Company. The Audit committee and the management have reviewed the adequacy of the internal control systems and suitable steps are taken to improve the same.

7. Financial performance with respect to operational performance

During the period under review the total turnover of the Company Rs. 2,08,33,81,774 as compared to previous year

Rs.2,00,00,18,208. The Profit before tax of the Company is Rs. 8,40,92,313 as compared to previous year 5,27,26,107. And Profit after tax of the company stood at Rs. 8,02,29,101 as compared to previous year Rs. 5,58,95,831

Volume wise comparision of summary are given below:-

Vertical FY 1718 Volume in Unit FY 1617 Volume in Unit
Sea Export:
FCL 7218 TEU 5871 TEU
LCL 221803 CBM 270909 CBM
Sea Import:
FCL 2870 TEU 2383 TEU
LCL 174365 CBM 126548 CBM
Air Export 317 Ton 38 Ton
Air Import 65 Ton 23 Ton

8. Material developments in Human Resources/ Industrial Relations front, including number of people employed.

Your Company firmly believes that its human resources are the key enablers for the growth of the Company and important asset.

Hence, the success of the Company is closely aligned to the goals of the human resources of the Company. Taking into this account, your Company continued to Invest in developing its human capita and establishing its brand on the market to attract and retain the best talent. Employee relations during the period under review continued to be healthy, cordial and harmonious at all levels and your Company is committed to maintain good relations with the employees. The Company has employed 400 people (including contractual) strong and dedicated workforce travel abreast of the latest trends.