Trade-Wings Ltd Management Discussions

1. INDUSTRY STRUCTURE AND DEVELOPMENTS Overview:

The Company is a Public Limited Company incorporated and domiciled in India and has its Registered Office at Goa, India and Corporate office in Mumbai. In addition to this, the Company has branches in more than 34 cities in India. The Company has its equity listed on BSE Limited. The Company has been steadily expanding its customer base, infrastructure, and service lines by establishing new branches in different cities in India. The Company operates in tourism industry and also provides Cargo Services.

Indias travel and tourism sector has recovered significantly since the pandemic, with a 10% increase in GDP contribution from 2019 to 2023. In 2023, the sector contributed $230 billion to Indias GDP, with domestic tourist spending increasing 15% from prepandemic levels. However, international visitor spending was still more than 14% below 2019 levels. In 2024, India ranked 39th on the World Economic Forums Travel & Tourism Development Index, which is the highest ranking in South Asia and among other lower-middle-income economies. This is a significant improvement from its 54th ranking in 2021.

In 2021, the travel and tourism industry generated 32.1 million jobs, which is 6.9% of the countrys total employment. In 2023, employment in the industry increased by 8% to 43 million. By 2029, it is expected to account for about 53 million jobs. In India, the industrys direct contribution to the GDP is expected to record an annual growth rate of 7-9% between 2019 and 2030. By 2028, international tourist arrivals are expected to reach 30.5 billion and generate revenue of over US$ 59 billion. However, domestic tourists are expected to drive the growth, post-pandemic. International hotel chains are increasing their presence in the country, and they will account for around 47% share of the tourism and hospitality sector of India by 2020 and 50% by 2022.

The Ministry of Tourism has also designated the Year 2024 as the Visit India year, an invitation to the world to witness the splendor and magnificence that our nation has to offer. Embracing a progressive outlook, India welcomes 100% Foreign Direct Investment (FDI) in the tourism industry under the automatic route. Additionally, 100% FDI is permitted for tourism construction projects, including the development of exquisite hotels, resorts, and unparalleled recreational facilities.

The Honorable Prime Minister has envisioned a mission mode approach to develop tourism during Amrit Kaal, with a strategic roadmap for the next 25 years. The objective is to position India as the foremost travel destination globally by the time we celebrate India@100 in 2047, creating unparalleled appeal for visitors from around the world.

Trade Wings Limited: Poised for Growth

Each of our business has its own unique and secular growth drivers and we enjoy a

relatively good position within each business.

Travel and travel related services

Renting

Cargo and Others

o International Tourist arrival: The countrys big coastline is dotted with several attractive beaches. With this, the travel market in India is projected to reach USD125 Billion by the Financial Year 2027 and International Tourist arrival is expected to reach 30.5 million by 2028.

o Job Opportunity: By 2029, it is expected to account for about 53 million jobs. In India, the industrys direct contribution to the GDP is expected to record an annual growth rate of 7-9% between 2019 and 2030.

o Business Growth: The travel market in India is projected to reach US$ 125 billion by FY27 from an estimated USD 75 billion in FY20.

• The Indian airline travel market was estimated at ~USD 20 billion and is projected to double in size by FY27 due to improving airport infrastructure and growing access to passports.

• The Indian hotel market including domestic, inbound, and outbound was estimated at ~USD 32 billion in FY20 and is expected to reach ~USD 52 billion by FY27, driven by the surging demand from travellers and sustained efforts of travel agents to boost the market.

Threats:

• Many tourist destinations lack essential infrastructure, such as adequate air, rail, and road connectivity, reliable internet access, and proper hospitality, health, and sanitation facilities.

o Governance Challenges:

• There are several governance issues, including a lack of clear guidelines for tourists, poorly regulated health and hygiene standards, inefficiently managed tourist information centres, and cumbersome visa regulations.

o The multiplicity of Taxes:

• The tourism industry faces a complex tax structure, with multiple taxes applied across the entire value chain, from tour operators and transporters to the airline industry and hotels.

o Unskilled Human Resources:

• There is a shortage of skilled manpower in the tourism sector, including a lack of relevant skills such as multilingual abilities and professional training.

o Safety of Tourists:

• Safety concerns, including instances of crimes against tourists such as theft and duping, particularly affect women.

During the year under review, the Company was operating in two segments viz.

1. Cargo and Others

2. Travel Related Services

The segment-wise performance of the Company during the year is given below:

o Tourism significantly impacts the balance of payments, being Indias third- largest foreign exchange earner.

o Tourism has positive spillover effects on other sectors such as food and catering, hotels and restaurants, real estate, and transportation.

o The tourism industry stimulates economic activity in fragile and remote rural, tribal, and hill areas with relatively poor infrastructure, unlocking the value of cultural heritage and ecological sites.

o Tourism enhances bilateral relations and people-to-people connections, creating sustainable "dependency bonds" that ensure peace.

The Company is well poised to grow in the coming years.

This report lists forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those anticipated in these statements as a result of certain factors. This section lists our, risks and concerns:

• Taxation: High taxes on hotels, airline facilities, and tour operators can cause losses to the company compared to cheaper countries.

• Geopolitical risk: Economic growth and tourism can be negatively impacted by geopolitical risks and economic policy uncertainty.

• Infrastructure: Poor infrastructure, such as a lack of good roads, electricity, and drinking water, can be an economic problem for tourism.

• Security: Security issues include an increase in sexual abuse of women, theft, credit card fraud, and public violence.

• Natural disasters: Natural disasters and epidemics can have different impacts on tourism, including duration, effects, and spatial influence.

The Company maintains adequate internal control system, which provides, amongst other things, reasonable assurance of recording the transactions of its operations in all material aspects and of providing protection against significant misuse or loss of Companys assets,

The Company has an adequate system of internal controls implemented for achieving efficiency in operations, optimum utilization of resources with analysis of data to strengthen it to meet the changing requirements.

The Board and the Audit Committee are responsible for maintaining the risk management framework and internal control processes and policies. The Board assesses and approves its overall risk appetite, monitors the risk exposure and sets the groupwide limits, which are periodically reviewed. The Companys management systems,

organizational structures, processes, standards, code of conduct and behaviours together form a system of internal control that governs how it conducts its businesses and manages associated risks.

The effectiveness of the internal control mechanism is reviewed by internal audit team and by the Statutory Auditors. The Audit Committee of the Board periodically reviews the functioning of the internal audit and the implementation of the recommended measures to improve the internal control mechanism.

The revenues from operations of the Company have increased by 16.01 % as compared to the previous financial year. The expenses have been increased by 15.67% %. The Other Income of the Company has increased by 0.68 %. During the current financial year the Company has recorded Profit before tax of INR 7,85,953/- as compared to the Profit before tax of INR 19,73, 802 in the previous year. The Company is expected to earn more profits in the coming years.

In any service enterprise, employees form the core of an organization. We recognize the vitality of this stakeholder. A significant portion of our management focus is invested in engaging with our employees and improvement of services to the clients satisfaction.

During the year the Company has not reported any Management-Employee conflict.

The Company is committed to create an appropriate climate, opportunities and systems to facilitate identification, development and utilization of employees full potential on a continuous basis.

Number of employees: There were 150 employees (including KMP) on the pay roll of the Company as on March 31, 2024.

Certain statements made in the management discussion and analysis report relating to the Companys objectives, projections, outlook, expectations, estimates and others may constitute forward looking statements within the meaning of applicable laws and regulations, Actual results may differ from such expectations, projections and so on,

whether express or implied. Several factors could make a significant difference to the Companys operations. These include economic conditions affecting demand and supply, government regulations and taxation, natural calamities and so on over which the Company may or may not have any direct control. Tire Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events.