ANNEXURE-6
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.
The Indian tourism and hospitality industry have emerged as one of the key drivers of
growth among the services sector in India. The second-largest sub-segment of the services
sector comprising trade, repair services, hotels and restaurants. Tourism in India
accounts for 9.2 per cent of the GDP and is one of the largest foreign exchange earners
for the country. India ranks 13th in the world in terms of foreign exchange
earnings from tourism. The total contribution of travel and tourism to Indian GDP is
forecasted to increase to US$ 492.21 billion by 2028.
Tourism in India has significant potential considering the rich cultural and historical
heritage, variety in ecology, terrains and places of natural beauty spread across the
country. Tourism is also a potentially large employment generator besides being a
significant source of foreign exchange for the country.
Tourism and hospitality are included as one of the focus sectors under Governments
Make in India initiative. Indias tourism industry has lauded the proposed Budget
allocation for the financial year 2023-24 as INR 2400 crore allocated to the Ministry of
Culture. The Government has also said that improvement of the tourism industry is directly
related to growth and job creation.
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.
The Company undertakes the business activities in the following areas:
Travel and travel related services Cargo and Others
2. Opportunities and Threats:
Opportunities:
Recovery and growth of economy as well as significant technology changes are presenting
several opportunities to the Company. Further, the Make in India initiative of Government
of India has also increased tourism in India, in addition to Investment. Also, the
Government has introduced process of tourist visa on arrival for citizens of certain
countries which make travel easy. Trade Wings Limited sees opportunities of growth on the
back of reviving global economies, political and social stability in the country. With the
second largest population in the world, India also presents a large number of potential
consumers.
Threats:
The global travel services industry is highly competitive with competition arising from
Multinational Companies and few Indian Companies having sizable presence globally and also
in the country. The stiff competition can lead to pressure on pricing, and hence can
impact Company growth and profitability.
The Company being in service industry, it is associated with supply side risks on
availability of talented pool of people and experts. Also attracting talented people and
attrition remains a risk.
3. SEGMENT-WISE PERFORMANCE:
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:
| Particulars |
Years ended March 31, 2023 |
| Total Segment Revenue |
|
| Cargo and Others |
1347.41 |
| Travel Related Services |
17114.88 |
| Less: Inter Segment Revenue |
|
| Cargo and Others |
0 |
| Travel Related Services |
0 |
| Revenue from External Customers |
|
| Cargo and Others |
1347.41 |
| Travel Related Services |
17114.88 |
| Segment Profit/Loss before Interest and Tax |
|
| Cargo and Others |
19.98 |
| Travel Related Services |
276.59 |
| Total |
|
| Less: Interest |
276.83 |
| Less: Other un-allocable expenditure net of unallocable income |
0 |
| Total Profit before Tax |
19.76 |
4. OUTLOOK:
The future of the travel services industry will largely be shaped by the economic,
social and political environment between the countries. The friendly relation between the
two counties will ultimately boost our business.
The terrorist threats have hit the travel industry globally. Our company has also been
affected by it. However, the governments all over the world are taking terrorist threats
seriously and are making efforts to neutralize the threats. The way the governments around
the world prevent the terrorist activities, will play a key role in our industry. The
Company is well poised to grow in the coming years.
5. RISKS AND CONCERNS:
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:
• Our business will suffer if we fail to anticipate and provide new services and
enhance existing services to keep pace with rapid changes in the businesses on which we
focus.
• In the event that the Government of India or the government of another country
• changes its external affairs policies in a manner that is averse to us, our
revenues may be affected, reducing our profitability,
• The Tours and Travel industry is a cyclical industry and is sensitive to changes
in the economy in general, A slowdown in global economy in general and any of our focused
economies in particular can unfavourably impact our business,
• Major Terrorist attack in the country
• Any Natural calamities or riots,
• Changes in foreign currency rates,
• Negative changes in export
One of the concerns is the Goods and Service Tax ("GST"), The GST Council
announced that non-AC restaurants will charge 12% GST on food, AC restaurants and those
with liquor license 18% per cent, and five star hotels will charge a GST of 28% to some
extent which will make India uncompetitive as taxes in neighbouring countries like
Republic Macedonia, Qatar, Kuwait, Bahrain range between 5% to 15%.
6. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:
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 group-wide 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.
7. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:
| Particulars |
2022-23 |
2021-22 |
Change (%) |
| Revenue from operations |
1,79,59,25,745 |
72,07,44,121 |
149.176% |
| Other income (2) |
5,03,02,850 |
3,59,93,929 |
39.753% |
| Sub-total (1+2) |
1,84,62,28,594 |
75,67,38,050 |
143.971% |
| Total Expenditure |
1,84,42,54,794 |
77,36,59,232 |
138.380% |
| Profit/(Loss) before Tax |
19,73,802 |
(1,69,21,182) |
(88.335%) |
| Profit/(Loss) after Tax |
12,77,410 |
(1,71,55,251) |
(92.55) |
The revenues from operations of the Company have increased by 149.176% as compared to
the previous financial year. The expenses have been increased by 138.380% .The Other
Income of the Company has increased by 39.753%. During the current financial year the
Company has recorded Profit before tax of INR 19,73, 802/- as compared to the loss before
tax of (1,69,21,182) in the previous year. The Company is expected to earn more profits in
the coming years.
8. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/ INDUSTRIAL RELATIONS FRONT:
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 125 employees (including KMP) on the pay roll of the
Company as on March 31, 2023.
9. DETAILS OF SIGNIFICANT CHANGES (I.E. CHANGE OF 25% OR MORE AS COMPARED TO THE
IMMEDIATELY PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS, ALONG WITH DETAILED
EXPLANATIONS THEREFOR:
| Sr No |
Particulars |
% / Amount |
% Increase / Decrease |
Explanation for change |
|
|
2022-2023 |
2021-2022 |
|
|
| i. |
Debtors Turnover (Rs) |
1908.86 |
1834.51 |
4.05% |
As the company has come a long way on its journey from the recovery of the devasting
after effects caused by COVID-19, there has been a positive increase in the financials of
the company. |
| ii. |
Inventory Turnover (Rs) |
84.41 |
26.75 |
215.55% |
|
| iii. |
Interest Coverage Ratio (%) |
1.07 |
0.28 |
282.14% |
|
| iv. |
Current Ratio (%) |
2.38 |
2.08 |
14,42% |
|
| V. |
Debt equity Ratio |
5.72 |
5.72 |
0 |
|
| vi. |
Operating Profit Margin (Rs) |
19.76 |
-169.22 |
111.68% |
|
| vii. |
Net Profit Margin (Rs) |
4.05 |
-173.39 |
102.34% |
|
10. DETAILS OF ANY CHANCE IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY
PREVIOUS FINANCIAL YEAR ALONG WITH A DETAILED EXPLANATION THEREOF:
|
|
% |
|
|
| Sr No |
Particulars |
2022-23 |
2021-22 |
% Increase / Decrease |
Explanation for change |
| i. |
Return on Net Worth (Rs.) |
133.85 |
129.8 |
3.12% |
There has been a positive increase in tire financials of the company post the effects
caused by COVID-19 |
Cautionary Statement:
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. The Company assumes no responsibility to publicly
amend, modify or revise any forward- looking statements, on the basis of any subsequent
developments, information or events.
For and on behalf of Board of Directors of Trade Wings Limited
| Dr Shailendra P. Mittal |
|
| Chairman & Managing Director |
|
| DIN: 00221661 |
|
| Address: 62-A, Mittal Bhavan, |
Date: 06th August, 2023 |
| Redder Road, Mumbai 400 026. |
Place: Mumbai |
+91-9892691696
