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Jalan Transolutions (India) Limited, started its progressive journey in 2003 as a two-wheeler transport solution provider with a renowned Multinational Automobile Company. Over the years, the Company has emerged into one of the leading automobile transportation companies in Northern India and expanded its network across the country that allows it to deliver clients shipment on time with greater safety and ease, through its IT enabled and value-added services, a fleet of about 35 Company Owned Trucks and extensive network. Company also provides Full Truck Load (FTL) & Less than Truck Load (LTL) services.

Majority of trucks are GPS enabled and centralized information technology network provides seamless real-time monitoring of our operations and consignment bookings and delivery status. Ability to provide timely delivery and quality service is the key to our reputation and further expansion of goods transportation business.

ECONOMIC OVERVIEW Industry & Growth

Logistics is regarded as the backbone of the economy, providing efficient and cost effective flow of goods on which other commercial sectors depend. Logistic industry in India is evolving rapidly, it is the interplay of infrastructure, technology and new types of service providers, which defines whether the logistic industry is able to help its customers reduce their costs in logistic sector and provide effective services.

Global Economic

The pandemic time has changed the game for many economic activities and logistics is no different. Consumer demands are always on the rise. During the pandemic, there has been a hike in demand for goods with a shortage of supply. Thus, we can say that logistics is one sector that has the potential to see a substantial increase in 2023.

India is one of the countries with the largest population and an expansive geographical coverage which contributes to many of the factors that influence logistics in the country. The pandemic has seen a shift with countless challenges unique to each region. The logistics industry is seeing its fair share of ups and downs but trends suggest better growth for this sector in the coming year.

The year 2022 was a hit-and-miss for many of the key players in the industry. ICRAs reports suggested a growth rate of 14-17 % for the 21-22 fiscal year. Moreover, around 14.4 % of the GDP is accounted for by the logistics industry. A substantial amount of the population that are employed work in this sector.

The value of the logistics industry stands at $250 billion as of 2021 and is expected to reach $380 billion by 2025. This suggests theres a good potential for this industry to see robust growth if challenges are well handled.

India Economic

Indias transportation and logistics industry is set to play a pivotal role in supporting the countrys ambitious growth aspirations. According to a recent EY report titled "India@100: realizing the potential of a US$26 trillion economy," India is expected to reach a staggering US$26 trillion by FY 2048. As the nation gears up to achieve this milestone over the next 25 years, the transportation and logistics industry will be a key enabler.

Currently, Indias freight movement is heavily dependent on road transportation, accounting for 66 percent of cargo in ton-kilometers. Rail transportation follows closely behind, with a share of 31 percent, while shipping and air transportation contribute three percent and one percent, respectively. However, freight transportation is unevenly distributed across different modes. Efforts are underway to correct this imbalance by establishing integrated infrastructure, adopting a multimodal approach, and pursuing sustainable development.

Indian Logistic Sector

Technology, data, and infrastructure trends indicate that 2023 is a year of dynamic shifts for the logistics industry. Any period of change and transformation brings with it opportunities for businesses to leverage with the right tools and growth goals. Some of these include adopting cutting-edge technologies, harnessing the power of data, and fostering collaborative digital ecosystems to facilitate supply chain streamlining. These strategies are also creating space for niche start-ups as companies seek to outpace competitors and meet the ever-evolving expectations of customers.

Technological innovation

The integration of advanced solutions is revolutionizing logistics operations, enhancing efficiency, and unlocking new opportunities. Key technologies shaping the future of logistics include:

• Artificial intelligence(AI)and machine learning: Al-powered algorithms and machine learning models enable predictive analytics, demand forecasting, route optimization, and real-time decision-making. These tools empower businesses to optimize their supply chains, improve resource allocation, and deliver enhanced customer experiences.

• Internet of things (IoT): With the proliferation of IoT devices, logistics companies gain greater visibility and control over their assets and inventory. IoT sensors and connectivity facilitate real-time tracking, remote monitoring, and predictive maintenance, enabling proactive and efficient logistics operations.

• Robotics and automation: Automation technologies, such as robotic process automation (RPA) and autonomous vehicles, are reshaping warehouse operations and last-mile delivery. Robotics streamlines repetitive tasks, reduces errors, enhances speed, and improves safety, leading to cost savings and increased productivity.

Rise of cross-border e-commerce

The logistics industry has been significantly impacted by the rapid growth of e-commerce, which has led to an increase in demand for international goods and MSMEs selling internationally. This growth is driven by millennials who make up a large portion of the professional purchase decision market and expect online shopping interfaces. Therefore, efficient and reliable delivery services have become necessary, leading to the rise of crossborder digital markets that have seen significant economic growth.

To meet the challenges presented by cross-border delivery, such as customs and duty laws, language barriers, and payment options, businesses need to carefully plan their operations. Logistics firms with a robust network and digital infrastructure capable of providing end- to-end solutions and support for cross-border e-commerce will be best suited to serve these customers.

FINANCIAL OVERVIEW

The performance of the Company for the financial year ended March 31, 2023, is as follows:

• Total revenue from operations at Rs. 970.10 lakh for the year ended March 31, 2023, as against Rs. 591.97 lakh for the corresponding previous period,

• The cost of Raw Materials/Revenue for the financial year ended March 31, 2023 were Rs 759.19 lakh as against Rs 827.53 lakh for the corresponding previous period,

• The Employee expenses for the financial year ended March 31, 2023 were Rs 08.90 lakh as against Rs. 10.90 lakh for the corresponding previous period,

• The other expenses for the financial year ended March 31, 2023 were Rs. 33.23 lakh as against Rs 52.98 lakh for the corresponding previous period,

RESOURCES AND LIQUIDITY

The cash and cash equivalents at the end of March 31, 2023 were Rs. 1.87 lakh.

RISKS AND CONCERNS

The Company is in continuous process of strengthening its risk management framework which identifies and evaluates business risks and opportunities. The Company recognizes that risks need to be identified at the right time, managed adequately and mitigation plans needs to be prepared to protect the interest of the stakeholders. Managing these risks actively is also a prerequisite to achieve business objectives and enable sustainable growth of the Company. The exercise to design the risk management framework is aimed at effectively mitigating the Companys various business and operational risks. The Company has a risk management policy for identification and assessment of risks which is monitored by the Audit Committee of the Company. The Committee closely monitors the process and suggests suitable measures to mitigate the risks. The risks may be caused due to the internal or external factor and necessary precautionary measures are taken by the Company to negate the impact of probable risk. The major risks of the Company are as follows:

Economic Risk

Companys business may be affected by interest rates, changes in Government policy, taxation and other economic developments affecting India. The Company has defined conservative internal prudential norms. The Company ensures a favorable debt/equity ratio, moderate liquidity, strong clientele with timely payment track record and focus on select markets to minimize the impact in adverse conditions. The Company has geographically diversified thereby reducing its dependency on one market.

Trade Risk

Our business can be affected by the rise and fall in the levels of cargo in the country. Given the projected growth in the Indian economy and expected recovery in global trade, rising spending in the infrastructure and manufacturing space and increasing per capita and disposable income, it is estimated that demand will continue to rise steadily. The Company is also focusing on this business, a relatively high margin segment which is essentially dependent on timely delivery of cargo in India. Thus, we believe we have adequate mitigation in place for trade risk.

Regulatory Risk

If we are unable to obtain required approvals and licenses in a timely manner, our business and operations may be adversely affected. We require certain approvals, licenses, registrations and permissions for operating our business. We may encounter delays in obtaining these requisite approvals, or may not be able to obtain such approvals at all, which may have an adverse effect on our revenues. However, the Government has come up with several initiatives to boost the sector and has planned massive investments in the infrastructure sector. As all industry predictions suggest that this will be the trend in the future as well and given our own experience in obtaining such permissions, we do not expect this risk to affect us materially in the coming years.

Liability Risk

The liquidity risk may come in the way of smooth operation of the Company due to one or the other reasons. Whenever there is blockage of funds in the hands of customers, the liquidity crunch is likely to happen. Although wholehearted support from the bankers strengthen the hands of the Company to face the liquidity risk, the company leaves no stone unturned to avoid the possibility of liquidity risk.

Execution Risk

The Company has undertaken number of trips for customers in the last year and several more are in the pipeline. Execution is largely dependent upon project management skills and timely delivery. Any delay in implementation can impact revenue and profit for that period. Our implementation schedules are in line with the plans. 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. Concerns like complex tax structure, infrastructure bottlenecks, retaining talent and unprecedented natural and man-made disasters and political/social turmoil which may affect our business, remain. However, these are threats faced by the entire

industry. With superior methodologies and improved processes and systems, the Company is well positioned to lead a high growth path.

OPPORTUNITIES AND THREATS

The most essential challenge faced by the industry today is insufficient integration of transport networks, information technology & distribution facilities. Regulations exist at a number of different tiers, is imposed by national, regional and local authorities. However, the regulations differ from city to city, hindering the creation of national networks.

Logistics sector in India is a highly disorganized sector, its perception as a manpower-heavy industry and lack of adequate training institutions has led to a shortfall in skilled management and client service personnel. There is a lack of IT standard, equipment and poor systems integration.

Whereas the Government gave emphasis on building world-class road networks and creation of logistics parks, the company had also converted its fleets strength in specially designed fleets. Currently 100% fleets of Company are CMVR complied trucks and engineered to lift loads with minimum on road damages.

Transportation dominates supply chain management in automobile

Among the various segments of the supply chain, transportation accounts for about 75-80% of the total supply chain management market for automobiles. Transportation is used in both inbound as well as outbound part of the supply chain, as the vehicles as well as the components are required to be transported to and from several locations. However, warehousing (including VAS and in-factory logistics) which accounts for about 20-25% of the total supply chain management market for automobiles is majorly required in the inbound part of the supply chain rather than on the outbound.

The Indian Government to also focus on new transportation avenues

Indias railways and roadways collectively accounted for approximately 87% of the total freight movement. Weighed down by the sheer load, the rail and road networks have been grappling with severe congestion. This has led the GOI to identify other alternatives to reduce congestion. Inland waterways and coastal shipping are both fuel and cost efficient, thereby reducing cost of logistics. The GOI is, therefore, promoting schemes such as Sagarmala and inland waterways as well as working towards developing an integrated, multi-modal logistics and transport policy for optimum and efficient utilization of all modes of transport. (Source: CRISIL Report.)

THREATS

• Competition from local and multinational players

• Execution risk

• Regulatory changes

• Attraction and retention of human capital

INTERNAL CONTROL SYSTEMS AND ADEQUACY

The Company has initiated adequate internal control procedure commensurate with the nature of its business and size of its operations. The company has Audit committee constituted with two independents and one executive director. To conduct independent audit on quarterly basis, which covers all the key areas of operations our company has Internal Auditor. All significant audit observations and follow up actions thereon are reported to the audit committee. The Audit committee met as per the details provided in Directors Report.

The Board of Directors of the Company have adopted various policies such as Related Party Transactions Policy, Whistle Blower Policy, Policy to determine the materiality of event and such other procedures for ensuring the orderly and efficient conduct of its business for safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information.

HUMAN RESOURCE DEVELOPMENT

Human resources are the most valued assets of the Company. They work individually and collectively contributing to the achievement of the objectives of the business. The relation between the employees and the Company remained cordial throughout the year. Your Companys corporate culture and the vision and values help unite the workforce and provide standards for how your Company conducts the business. The Company has 03 (Three) permanent employees on the rolls of Company as on March 31, 2023.

CAUTIONARY STATEMENT

Estimate and expectations stated in this Management Discussion and Analysis may be "forwardlooking statement" within the meaning of applicable securities, laws and regulations. Actual result could differ materially from those expressed or implied. Important factors that could make difference to your Companys operations include economic conditions in the government regulations, tax laws, other statutes and other incidental factors.

For and on behalf of the Board

JALAN TRANSOLUTIONS (INDIA) LIMITED

Date:01-09-2023 Sd/- Sd/-
Place: Ghaziabad Manish Jalan Meena Jalan
Managing Director Director
DIN: 00043040 DIN:00050277