Dear Shareholders,
The Board of Directors is pleased to present the 29th Annual
Report of the company together with the Audited Financial Statement for the year ended on
March 31, 2023.
FINANCIAL RESULTS
The financial performance of the Company, for the year ended March 31,
2023 are summarized below:
(Rs. in hundreds)
PARTICULARS |
2022-23 |
2021-22 |
Profit before Depreciation & Amortization Expenses,
Finance Costs & Tax Expenses |
347264 |
315031 |
Less: Finance Cost |
114174 |
161896 |
Depreciation |
36261 |
40159 |
Profit before Tax |
196829 |
112977 |
Extraordinary Items - Long Term Profit on Sale of Land |
|
24669 |
Less: Current Tax |
59122 |
33322 |
Deferred Tax Liabilities |
1707 |
5005 |
Profit for the year |
136000 |
99319 |
Other Comprehensive Income |
9419 |
6314 |
Total Comprehensive Income for the Year |
145419 |
105633 |
SUMMARY OF FINANCIAL RESULTS AND PERFORMANCE OF THE COMPANY
The Financial Year 2022-23 was better than the previous financial year.
Despite the competitive landscape,
your Company has performed well. The highlights of the performance are
as under:
P Revenue from operation has been increased by 4.6 9% to Rs.
64,48,804/- hundred for the year as against Rs. 61,59,574/- hundred ofthe previous year.
P- PBDIT increased by 10.23% to Rs. 3,47,264 hundred for the year as
against Rs. 3,15,031 hundred ofthe previous year.
P Profit before tax increased to Rs. 1,96,829 hundred for the year as
against Rs. 1,37,646 hundred ofthe previous year.
P Net Profit rise to Rs. 1,45,419/- hundred for the year as against
Profit of Rs. 1,05,633/- hundred of the previous year.
INDIAN ACCOUNTING STANDARDS
As mandated by the Ministry of Corporate Affairs, the Company has
adopted Indian Accounting Standards ("Ind AS") from 1st April, 2017 with a
transition date of 1st April, 2016. The Financial Results for the year 2022-23 have been
prepared in accordance with Ind AS, prescribed under Section 133 of the Companies Act,
2013 read with the relevant rules issued there under and the other recognized accounting
practices and policies to the extent applicable. The Financial Results for all the periods
of 2022-23 presented have been prepared in accordance with Ind AS.
DIVIDEND
Directors do not recommend any dividend for the year under review.
SHARE CAPITAL
The paid-up equity share capital as at March 31, 2023 is Rs. 17.40818
Crores, divided into 1,74,08,180 equity shares of face value Rs. 10 each. During the year
under review, the Company has not issued any equity shares with differential rights or
sweat equity shares or under any employee stock option.
RESERVES
The Company has transferred an amount of Rs. 1,45,419/- hundred to the
General Reserve which is current year's profits and the same is in compliance with the
applicable provisions prescribed under the Companies Act, 2013.
THE COMPANY?S WORKING DURING THE YEAR/STATE OF COMPANY?S
AFFAIR The company diligently strives to maximize its profitability through various
strategic initiatives and concerted efforts. By leveraging its resources, optimizing
operational efficiencies, and implementing effective cost- management measures, the
company actively seeks to enhance its financial performance and generate sustainable
growth. Additionally, the company remains committed to identifying and capitalizing on
market opportunities, fostering innovation, and staying abreast of industry trends to
further bolster its competitive advantage and drive increased profitability. The
significant increase of 37.66% in Net Profit exemplifies the Company unwavering dedication
to maximizing the wealth of its stakeholders.
CHANGE IN THE NATURE OF BUSINESS
There is no change in nature of business of the Company during the
Financial Year 2022- 23.
MATERIAL CHANGES AND COMMITMENTS, AFFECTING THE FINANCIAL POSITION OF
THE COMPANY WHICH HAVE OCCURRED BETWEEN THE END OF THE FINANCIAL YEAR OF THE COMPANY TO
WHICH THE FINANCIAL STATEMENTS RELATE AND THE DATE OF THE REPORT
There have been no such material or significant changes during the year
under review.
DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR
COURTS OR TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANY?S OPERATIONS IN
FUTURE
There are no significant and material orders passed by the regulators
or courts or tribunals impacting going concern status and company?s operations in
future.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company has an Internal Control System, commensurate with the size,
scale and nature of its operations. The scope and authority of the Internal Audit function
is well defined and to maintain its objectivity and independence, the Internal Audit
function reports to the Chairman of the Audit Committeeof the Board as well as directly to
the Chairman & Managing Director. The Internal Audit Department monitors and evaluates
the efficacy and adequacy of internal control system in the Company, its compliance with
operating systems, accounting procedures and policies of the Company.
Based on the report of internal audit function, process owners
undertake corrective action in their respective areas and thereby strengthen the controls.
Significant audit observations and recommendations along with corrective actions thereon
are presented to the Audit Committee of the Board.
DETAILS OF SUBSIDIARY/JOINT VENTURES/ASSOCIATE COMPANIES
The company does not have subsidiary companies or associates?
companies nor has it entered into any joint
ventures? agreements.
DEPOSITS
The company has not accepted any deposits during the year from the
Public under section 73 to 76 of the Companies Act, 2013 nor did it receive the same in
any of the previous years and hence there are no overdue / outstanding Deposits or any
interest payable thereon and therefore the prescribed details under the Companies Act,
2013 are not required to be furnished.
STATUTORY AUDITORS
The Members at the 27th Annual General Meeting held on Thursday, 30th
September, 2021, approved the appointment of M/s Vineet Kapoor & Associates, Chartered
Accountants (Firm Registration number: 32238 IE), for a term of 5 (five) years to hold
office till the conclusion of 32th Annual General Meeting of the Company. The Statutory
Auditors have confirmed their eligibility and submitted the certificate in writing that
they are not disqualified to hold the office of the Statutory Auditor. The report given by
the Statutory Auditor on the financial statements of the Company forms part of the Annual
Report. There is no qualification, reservation, adverse remark or disclaimer given by the
statutory auditor in their report.
SECRETARIAL AUDITOR
Pursuant to provisions of section 204 of the Companies Act, 2013 and
The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 the
Company has appointed Ms. Kan chan Maheswari, Company Secretary in practice to undertake
the Secretarial Audit of the Company for FY 2022-23. The Secretarial Audit report is
annexed herewith as "Annexure B." The Secretarial Auditor?s report to the
shareholders does not contain any qualification.
AUDITORS REPORT
The observations made in the Auditor?s Report are self-explanatory
and do not call for any further comments u/s 134(3) (f) of the Companies Act, 2013. The
Auditors have not made any qualifications in their report.
COST RECORDS
Company is not required to maintain cost records under Section 148( 1)
of the Companies Act, 2013 EXTRACT OF ANNUAL RETURN
Pursuant to Section 92(3) read with Section 134(3) (a) of the Act, the
Annual Return as on March 31, 2023 is available on the Company's website on at
www.balurghat.co.in
MANAGEMENT?S DISCUSSION AND ANALYSIS REPORT
Management?s Discussion and Analysis Report for the year under
review, as stipulated in SEBI (LODR) Regulations 2015, is presented in a separate section
forming part of the Annual Report.
ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
Having regard to the nature of business undertaken by your company, the
disclosures on Conservation of Energy and Technology are not required. However, there had
been no foreign exchange outgo during the period under review.
AUDIT COMMITTEE
As Per Corporate Governance Report annexed hereto
CORPORATE SOCIAL RESPONSIBILITY POLICY
As per the criteria prescribed under section 135 of the Companies Act,
2013, the CSR is not applicable to the Company in respect of the financial year 2022-23.
The company will however, formulate and implement CSR policy as and when it gets
applicable to the Company.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS
The company has not given any loans or guarantees covered under the
provisions of section 186 of the Companies Act, 2013. Details of investments made by the
company are given in the notes to the financial statements.
RELATED PARTY TRANSACTION
The company has framed Policy on materiality of related party
transactions and dealing with related party transactions. All related party transactions
that were entered into during the financial year were on arm?s length basis and were
in the ordinary course of the business. There are no materially significant related party
transactions made by the company with Promoters, Key Managerial Personnel or other
designated persons which may have potential conflict with interest of the company at
large.
PARTICULARS OF EMPLOYEES Key Managerial Personnel
As on 31 March 2023, the following persons are designated as Key
Managerial Personnel ("KMP") of the Company pursuant to the provisions of
Sections 2(51) and 203 of the Act read with the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014:
1. Mr. Pawan Kumar Sethia, Managing Director;
2. Mr. Arun Kumar Sethia, Whole Time Director;
3. Mr. Ravikant Sethia, Whole Time Director;
4. Mr. Ankit Sethia, Chief Financial Officer.
Changes in KMP during the financial year
During the financial year under review, Ms. Prity Bishwakarma, Company
Secretary & Compliance Officer of the Company, has tendered her resignation from the
services of the Company, with effect from the close of business hours of 18th March, 2023.
Disclosure as required under Section 197 (12) Of the Companies Act 2013 read with Rule
5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014,
are given in this report and annexed herewith.
DIRECTORS
At present your Board is duly constituted comprising of 6 (Six)
Directors, Mrs. Gita Sharma (DIN: 06766560) Mr. Pawan Kumar Sethia (DIN: 00482462), Mr.
Arun Kumar Sethia (DIN: 00001027), Mr. Rajendra Dugar (DIN: 08187495), Mr. Manik Chand
Tater (DIN: 01096517), and Ms. Ravikant Sethia (DIN: 02769848).
In accordance with the provisions of the Companies Act, 2013, Mr.
Ravikant Sethia, retires by rotation at the ensuing Annual General Meeting and being
eligible, offers himself for re-appointment.
None of the Directors of the company are disqualified for being
appointed as Directors as specified under section 164 of the Companies Act, 2013 and the
rules made there under.
MEETINGS
During the year under review, six Board Meetings dated 30.05.2022,
10.08.2022, 30.08.2022, 14.11.2022,
09.02.2023 and 18.03.2023 and Four Audit Committee Meetings were
convened and held, the dates and attendance of each Directors are given in the Corporate
Governance Report.
The maximum time gaps between the Meetings were within the period as
prescribed under the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure
Requirement) Regulations, 2015. The details of constitution of the Board and its Committee
are given in the Corporate Governance Report.
DECLARATION BY INDEPENDENT DIRECTORS
The Company has received necessary declarations from each independent
director under Section 149(7) of the Companies Act, 2013, that he / she meets the criteria
of independence laid down in Section 149(6) of the Companies Act, 2013 and Regulation 25
of the Listing Regulations. The Board confirms that, in its opinion, the independent
directors fulfil the conditions as specified in the Regulation 16 of the Securities and
Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations,
2015 and they are independent of the management.
BOARD EVALUATION
Pursuant to the provisions of the Section 134(3) (P) Companies Act,
2013 and SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015 the
Board has carried out an evaluation of its own performance, the directors individually as
well as the evaluation of the working of its Audit, Nomination & Remuneration
Committees. The performance evaluation of Non - Independent Directors and Board of
Directors as a whole and was satisfied overall. Evaluation Process is based on structured
questionnaire covering various aspects of the Board?s functioning. Board?s
culture and performance was circulated to the members of the Board for the Financial Year
2022-23. Based on the response received, the Board as a whole, the Committees, the
Chairperson and individual Directors were separately evaluated in the meeting of the
Independent Directors and at the meeting of the Board of Directors. The Board has carried
out the performance evaluation of all independent Directors of the Company and is
satisfied with their performance.
NOMINATION AND REMUNERATION POLICY
The Board has, on the recommendation of the Nomination &
Remuneration Committee framed a policy for selection and appointment of Directors, Senior
Management and their remuneration including criteria for determining qualifications,
positive attributes and other matters provided under sub section (3) of section 178 of the
Companies Act 2013. The Remuneration Policy is stated in the Corporate Governance Report
RISK MANAGEMENT POLICY
As per requirement of section 134(3) (n) of the Companies Act 2013 and
SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 the Board of
Directors has framed risk management policy. The Board has a risk assessment and
minimization procedure which is reviewed by the Board periodically. There is a structure
in place to identify and mitigate various identifiable risks faced by the Company from
time to time. At the Meetings of the Board, these risks are reviewed and new risks are
identified. As of now the Directors do not envisage any element of risk which threatens
the existence of the Company.
The Risk Management Policy is available on the website of the Company
at www.balurghat.co.in
VIGIL MECHANISM/WHISTLE BLOWER POLICY
In accordance with the provisions of the Companies Act, 2013, read with
the Rules made therein, and the SEBI (Listing Obligations and Disclosure Requirement)
Regulations, 2015, the Company believes in the conduct of its affairs in a fair and
transparent manner to foster professionalism, honesty, integrity, and ethical behaviors in
all its business activities and has put in place a mechanism for reporting illegal or
unethical behavior. The Company has adopted a Vigil Mechanism through which employees,
directors, and other stakeholders are free to report to Senior Management any unethical
behavior, improper practices, or wrongful conduct taking place in the Company for
appropriate action. The confidentiality of those reporting violations is maintained, and
they are not subjected to any discriminatory practices.
VIGIL MECHANISM/WHISTLE BLOWER POLICY
During the year under review, there were no cases filed pursuant to the
Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
The Company has complied with the requirement of formation of a suitable committee as
required under the said act. The Board of Directors and/or the Management of the Company
have not received any complaint on this account from any of the employees of the Company
or from any other person.
RELATED PARTY TRANSACTIONS
All related party transactions that were entered into during the
financial year were on arm?s length basis and were in the ordinary course of the
business. There are no materially significant related party transactions made by the
company with Promoters, Key Managerial Personnel or other designated persons which may
have potential conflict with interest of the company at large.
The Policy on materiality of related party transactions and dealing
with related party transactions as approved by the Board of Directors
PREVENTION OF INSIDER TRADING
The Company has adopted a Code of Conduct for Prevention of Insider
Trading with a view to regulate trading in securities by the Directors and certain
designated employees of the Company. The Code requires pre-clearance for dealing in the
Company?s shares and prohibits the purchase or sale of Company shares by the
Directors and designated employees while in possession of unpublished price sensitive
information in relation to the Company and during the period when the trading window is
closed. The Board is responsible for implementation of the Code. All Board Directors and
the designated employees have confirmed compliance with the Code.
STATUTORY DISCLOSURE
None of the Directors of the Company are disqualified as per provision
164(2) of the Companies Act, 2013.Your Directors have made necessary disclosures as
required under various provisions of the Companies Act, 2013 and Listing Regulations.
FRAUDS REPORTED BY AUDITORS
During the financial year under review, the Statutory Auditor and the
Secretarial Auditor of the Company have not reported any instance of fraud committed in
the Company by its officers or employees to the Audit Committee under Section 143(12)
ofthe Companies Act, 2013.
DIRECTORS? RESPONSIBILITY STATEMENT
Pursuant to the requirement under section 134(5) of the Companies Act,
2013, with respect to Directors? Responsibility Statement, it is hereby confirmed
that:
In terms of Section 134 (5) of the Companies Act, 2013, the directors
would like to state that:
i) In the preparation ofthe annual accounts, the applicable accounting
standards have been followed.
ii) The directors have selected such accounting policies and applied
them consistently and made judgments and estimates that were reasonable and prudent so as
to give a true and fair view of the state of affairs of the Company at the end of the
financial year and of the profit or loss of the Company for the year under review.
iii) The directors have taken proper and sufficient care for the
maintenance of adequate accounting records
in accordance with the provisions of this Act for safeguarding the
assets of the Company and for preventing and detecting fraud and other irregularities.
iv) The directors have prepared the annual accounts on a going concern
basis.
v) The directors had laid down internal financial controls to be
followed by the company and that such internal financial controls are adequate and were
operating effectively.
vi) The directors had devised proper systems to ensure compliance with
the provisions of all applicable laws and that such system was adequate and operating
effectively.
CORPORATE GOVERNANCE
Your Company complies with all the mandatory requirements as stipulated
SEBI Disclosure Regulations, 2015. The Report on Corporate Governance as stipulated under
SEBI (LODR) Regulations, 2015 forms part of the Annual Report. The requisite certificate
from the Auditors of the Company confirming compliance with the conditions of Corporate
Governance as stipulated under the aforesaid SEBI (LODR) Regulations, 2015 is attached to
this Report.
ACKNOWLEDGEMENT
The Board of Directors would like to express its profound gratitude for
the dedicated efforts and diligent services rendered by all the Company?s employees.
Furthermore, the Board of Directors wishes to extend its sincere
appreciation for the support and cooperation received from various entities, including the
government and regulatory authorities, stock exchanges, depositories, banks, customers,
business associates and members throughout the reviewed year.
Management Discussion & Analysis Report
OVERVIEW OF THE GLOBAL ECONOMY
The global economy was on the path of recovery, but economic outlook
shifted after the Russia Ukraine conflict broke out in February 2022. The conflict further
disrupted the global supply chains and led to a surge in inflation and prices of critical
commodities. In response, central financial institutions around the world responded with
tightening of monetary policy to curb inflation which led to increased borrowing costs and
weakened growth. High inflation is now getting reflected in multiple leading indicators of
global economic activity.
According to IMF, world?s economic growth is expected to slow down
from 3.4% in 2022 to 2.8% in 2023 before picking up to 3.0% in 2024. The growth in 2023 is
expected to be the lowest since 2001, except for the downturns in 2008 and 2021 due to the
financial crisis and COVID-19 pandemic, respectively.
Despite experiencing a strong recovery following the pandemic, global
trade is now slowing down due to several challenges faced by the global economy. The World
Trade Organisation (WTO) predicts that the volume of world merchandise trade will grow by
1.0% in 2023, compared to 9.7% in 2021. According to the IMF?s World Economic Outlook
from October 2022, the growth in the volume of world trade (goods and services) is
expected to decrease from 10.1% in 2021 to 4.3% in 2022 and further to 2.5% in 2023.
OVERVIEW OF THE INDIAN ECONOMY
The Indian economy bounced back after its encounter with the pandemic
and has shown strong growth in the first half of 2022-23, which was faster than other
major economies. As per latest estimates from the Ministry of Statistics & Programme
Implementation, the growth in real GDP during 2022-23 was estimated at 7.0% as compared to
9.1% in 2021-22. Capital expenditure (CAPEX) of the central government, which increased by
63.4% in the first eight months of 2022-23, was another growth driver of the Indian
economy.
As per the Economic Survey of India (2022-23), further support to
economic growth is coming from the expansion of public digital platforms and measures such
as PM Gati Shakti, the National Logistics Policy, and the Production-Linked Incentive
schemes to boost manufacturing output.
India?s economy is doing well, with private sector investment,
normalisation of supply chains, and growing exports. However, India has also had to deal
with the task of controlling inflation, which intensified with the global financial
crisis. Retail Inflation was above the RBI?s tolerance range in 2022 before the
pressure started easing in November 2022 and cooled down to 5.6% in March 2023.
Going forward, India needs to focus on medium-term challenges such as
securing technology and resources for energy transition and skilling its youth for the
21st century economy, while staying the course on fiscal consolidation at the general
Government level. With continuous efforts during the last several years, a strong platform
has been established on which the superstructure of a middle-income economy can be
constructed.
The Union Budget 2023-24 focuses on four key areas:
1) Sustaining growth in agriculture, industry, and services besides the
green economy.
2) Inclusive growth of women, children, and deprived &
disadvantaged sections of society for broadbased development of the economy.
3) Stimulating growth through capital expenditure, employment
generation, and exports.
4) Financing growth by strengthening the banking and in general, the
financial sector.
GOVERNMENT MEASURES TARGETING INDIA?S LOGISTICS AND SUPPLY CHAIN
INDUSTRIES
The logistics and supply chain industries in India are currently
experiencing a significant transformation, driven by several government initiatives aimed
at boosting the sector. Notably, the implementation of the GST and the recognition of
logistics as infrastructure status are two critical moves that have been instrumental in
driving this change.
Additionally, other initiatives have been put in place to streamline
the movement of goods and reduce turnaround times. We discuss some of these below:
Dedicated freight corridors: To facilitate the seamless transportation
of goods and commodities across India, high-speed, large-capacity railway corridors known
as dedicated freight corridors have been established. These corridors integrate
state-of-the-art technology and improved infrastructure, promising enhanced efficiency and
effectiveness in the logistics operations
Multimodal logistics parks: The development of multimodal logistics
parks is a strategic step towards providing comprehensive freight-handling facilities.
Spread across at least 100 acres, these parks offer access to various modes of
transportation, including road, rail, and air. They also provide advanced storage
solutions like mechanized warehouses and cold storage facilities, along with essential
services like customs clearance and quarantine zones. By reducing freight costs, warehouse
expenses, and vehicle congestion, these parks aim to optimize logistics operations and
enhance overall supply chain efficiency.
Parivahan portal: To standardize processes and promote seamless
information sharing across different locations, the government has introduced the
Parivahan portal. This digital platform encompasses SARATHI for driving license processes
and VAHAN for vehicle registrations. Both functionalities are consolidated within a single
user-friendly mobile application, TnParivahan?. This initiative streamlines
administrative procedures and provides easy access to information related to registration
cards and drivers? licenses, facilitating smoother logistics operations.
Introduction of the e-way bill: The implementation of the e-way bill
system mandates the use of electronic documentation for truckloads valued above INR
50,000. This digital documentation eliminates the need for physical paperwork and state
boundary check posts, simplifying inter-state vehicle movement. By reducing turnaround
time and bureaucratic hurdles, the e-way bill initiative enhances logistics efficiency and
expedites overall supply chain movement.
INDIAN LOGISTICS INDUSTRY - SIZE & STRUCTURE
India's logistics market in 2022 has solidified its place in the global
market and has grown enormously over the last eight decades, making it a draw for global
market and investments. Technology-enabled and industry-specific customised services have
helped the logistics sector achieve unprecedented success in recent years.logistics
industry has achieved remarkable progress, highlighted by the country?s rise of six
spots in the World Bank?s Logistics Performance Index (LPI). This improvement is
credited to various factors, such as technology innovation, data-driven decision-making,
and policy initiatives aimed at facilitating world-class infrastructure.
The union budget for the financial year 2022-23 focused greatly on
infrastructure development such as roads, expressways, highways, logistics parks, and
other public goods that had a positive impact for the industry. PM GatiShakti made a major
push to improve multimodal connectivity and logistics efficiency, as logistics and supply
chain processes in India are highly fragmented. The government increased the Union Budget
allocation for capital investment by 33 percent, amounting to INR 10 trillion, for
2023-24. This development has been warmly welcomed by the logistics industry as it is
expected to bolster India?s position in the global supply chain by prioritizing
infrastructure development. The Indian logistics industry has experienced significant
growth in recent years, driven by factors such as the rise of e-commerce and increasing
demand for transportation and warehousing services. The industry is estimated to be worth
around US$ 215 Bn, with a CAGR of approximately 10% between 2019-2025. The industry can be
further sub-divided into key sectors, including transportation, warehousing, freight
forwarding, express delivery services and other logistics services such as container
logistics, cold chain logistics, coastal shipping, and so on. Road transportation is the
dominant mode, accounting for over 60% of the market share, followed by railways, air, and
sea transportation.
TRAVEL AND TOURISM SECTOR IN INDIA:
India is a large market for travel and tourism. It offers a diverse
portfolio of niche tourism products - cruises, adventure, medical, wellness, sports, MICE,
eco-tourism, film, rural and religious tourism. India has been recognized as a destination
for spiritual tourism for domestic and international tourists. India ranked 34 in the
Travel & Tourism Competitiveness Report 2019 published by the World Economic Forum.
According to research by World Travel & Tourism Council (WTTC), the
travel & tourism sector?s contribution to the Indian economy would surpass the
pre-pandemic levels in 2024 with a year-on-year growth of 20.7%. Indians? tourists
are going to be amongst the top spenders in 2023 for travel, as the flights are still
going full and there are plenty of other visitors at popular travel spots. Amongst the
travel choice weekend getaways will be more popular this year. Between the age of 23-40
years, more travellers are willing to upgrade their experience and splurge on holidays.
India is geographically diverse and offers a variety of cultures that
come with its own experiences, making it one of the leading countries in terms of
international tourism expenditure. As per IBEF?s report on Growth of Tourism and
Hospitality Industry, Travel and tourism are two of the largest industries in India, with
a total contribution of about US$ 178 billion to the country?s GDP. The
country?s big coastline is dotted with several attractive beaches. With this, the
travel market in India is projected to reach US $125 Billion by Financial Year 2027.
International Tourist arrival is expected to reach 30.5 million by 2028. As in several
other sectors, Indian companies have been leveraging technology as a critical enabler of
growth for the sector for over a decade now. From search engines and global distribution
system (GDS) services to online travel agencies, the travel industry has witnessed
significant innovation, and there is scope for more. A primary driver of tech-oriented
growth for travel and hospitality companies is their adoption of cloud solutions and the
development of Software as a Service (SaaS) technologies.
INDUSTRY STRUCTURE AND DEVELOPMENTS
The company operates in the fields of Logistic Solutions, Supply Chain
Services, and Travel and Tourism. Compared to Financial Year 2021-2022, the performance of
our company during this financial year (2022-2023) has exhibited positive results. As we
move forward, we remain focused on sustaining this positive momentum, capitalizing on
emerging opportunities, and addressing challenges proactively. We are confident that with
our strong foundation and the continued efforts of our talented employee?s, we will
achieve even greater success in the coming years.
The significant changes in the financial of the Company, as compared to
the previous year, are summarized as follows:
Revenue from operation increased to Rs. 64,48,804/- hundreds for the
year as against Rs. 61,59,574/- hundred of the previous year. PBDIT increased to Rs.
3,47,264/- hundred for the year as against Rs. 3,15,031/- hundred of the previous year.
Profit before tax increased to Rs. 1,96,829/- hundred for the year as against Rs.
1,37,646/- hundred of the previous year. Net Profit rise to Rs
1,45,419/- hundred for the year as against Rs. 1,05,633/- hundred of
the previous year.
OPPORTUNITIES AND CHALLENGES: LOGISTICS AND SUPPLY CHAIN SERVICES
Opportunities
India's economy is growing rapidly, and with that comes increased
demand for efficient logistics services. The country has a thriving manufacturing sector,
rising e-commerce activity, and increasing domestic consumption, all of which require
robust logistics infrastructure to support their operations. The Indian government has
implemented several initiatives to enhance the logistics industry. The introduction of the
Goods and Services Tax (GST) has streamlined the tax system, reduced logistics costs and
improving efficiency. Additionally, projects such as the Dedicated Freight Corridors
(DFCs) and the Bharatmala Pariyojana are aimed at developing modem infrastructure and
improving connectivity across the country.
India is experiencing rapid growth in its e-commerce sector, driven by
increasing internet penetration and smartphone usage. As more consumers turn to online
shopping, there is a growing need for reliable and efficient logistics networks to handle
last-mile delivery, warehousing, and fulfillment services. The Indian government's focus
on infrastructure development presents opportunities for logistics players. Investments in
ports, airports, roadways, and rail networks will enhance connectivity and reduce
transportation bottlenecks, enabling faster and more efficient movement of goods across
the country.
Challenges
India's logistics industry is hindered by inadequate infrastructure,
including poor road conditions, congested ports, and outdated warehouse facilities. The
lack of efficient transportation networks and storage facilities increases transit times
and costs.
Rising crude oil prices leading to high transport costs. Severe
volatility in crude oil prices resulting in fuel prices reaching an all-time high in India
impacted our transportation business in 2022-23. Crude oil prices continue to stay
volatile because of geo-political tensions.
Pricing pressure from customers. Rising input costs due to increase in
commodity and cmde oil prices made most of our customers focus on cost rationalisation.
This led to increased pricing pressure on us. Increased pricing pressure was witnessed in
Contract Logistics & Last Mile Delivery. We are addressing this challenge by focusing
on value addition and driving cost-reduction initiatives across the organization.
OPPORTUNITIES AND CHALLENGES: TRAVEL & TOURISM Opportunities
India is known for its rich cultural heritage, historical monuments,
and diverse traditions. This attracts a significant number of international tourists who
are interested in exploring India's unique culture. India is blessed with diverse
geographical features, including beautiful beaches, majestic mountains, dense forests, and
wildlife reserves. These natural attractions offer immense potential for adventure tourism
and eco-tourism. India has emerged as a popular destination for medical tourism due to its
advanced healthcare facilities, skilled doctors, and cost-effective treatments. Many
people from around the world travel to India for specialized medical procedures.
The rise of the middle class in India has led to an increase in
domestic tourism. As more people have disposable income, they are willing to spend on
leisure travel, which contributes to the growth of the domestic tourism industry. The
widespread availability of the internet and the growth of online travel platforms have
made it easier for travelers to access information, book flights and accommodations, and
plan their trips. This has opened up new avenues for the travel and tourism industry in
terms of marketing and distribution.
Challenges
Despite significant improvements in recent years, India's travel and
tourism infrastructure still faces challenges. There is a need for better roads, airports,
railways, and accommodations to support the growing number of tourists. Ensuring the
safety and security of tourists is crucial for the growth of the industry. Incidents of
crime, harassment, and terrorism can negatively impact the perception of India as a safe
travel destination.
Dealing with regulatory frameworks, obtaining permits, and complying
with government regulations can be complex and time-consuming for travel and tourism
businesses. Streamlining these processes and reducing bureaucracy would encourage
investment and growth in the industry.
The Company operates in the travel products and services sector, which
is highly competitive. The success of the company depends upon its ability to compete
effectively against numerous established and emerging competitors, including other online
travel agencies, traditional offline travel companies, travel research companies, payment
wallets, search engines and meta-search companies, both in India and abroad.
India's tourism industry is highly seasonal, with peak periods
coinciding with festivals and favorable weather conditions. This can result in
fluctuations in visitor numbers and challenges for businesses in maintaining a steady flow
of revenue throughout the year.
Risks and Concerns
Economic Uncertainty: These industries are highly sensitive to economic
fluctuations. During periods of economic downturns or recessions, consumer spending on
travel and tourism may decline, impacting the company's revenue. Similarly, reduced demand
for logistics and supply chain services due to lower production or consumption can affect
profitability.
Regulatory Compliance: The logistics, supply chain, and travel and
tourism sectors are subject to numerous regulations and compliance requirements. Companies
must adhere to safety standards, licensing, permits, insurance, environmental regulations,
labor laws, and other legal obligations. Failure to comply can result in fines, penalties,
reputational damage, or even suspension of operations.
Security and Safety Risks: In these industries, security threats and
safety concerns are significant. Companies must address issues such as theft, fraud,
cyberattacks, terrorism, accidents, and natural disasters. Ensuring the safety of
employees, customers, and goods during transportation, in warehouses, or at travel
destinations is crucial.
Volatile Fuel Prices: Fluctuations in fuel prices directly impact
logistics and transportation costs. Companies in these sectors heavily rely on fuel for
their operations, and unexpected price increases can squeeze profit margins. Mitigating
these risks often involves implementing fuel hedging strategies or optimizing
transportation routes and modes.
Intense Competition: The logistics, supply chain, and travel and
tourism sectors are highly competitive, with numerous players vying for market share.
Companies need to differentiate themselves through superior service quality, cost
efficiency, technology adoption, or unique offerings to maintain a competitive edge.
Technological Advancements: Embracing technological advancements is
crucial to stay competitive and meet customer expectations. However, rapid technological
changes can pose challenges in terms of investment costs, staff training, integration of
new systems, and maintaining data security and privacy.
Changing Consumer Preferences: Consumer preferences in the travel and
tourism industry can change rapidly, influenced by factors such as health concerns,
sustainability, digitalization, and personalized experiences. Companies need to adapt to
these evolving preferences and consumer demands to remain relevant and attract customers.
Outlook
Companies are striving to enhance their supply chain efficiency, reduce
costs, and improve overall operational effectiveness. This has led to increased demand for
advanced logistics solutions, such as real-time tracking, warehouse automation, and
predictive analytics.
The logistics industry is experiencing significant technological
disruptions, including the Internet of Things (IoT), blockchain, and artificial
intelligence. These innovations streamline processes, optimize route planning, and improve
visibility throughout the supply chain.
The travel industry is embracing digitalization to enhance customer
experiences, improve safety measures, and streamline operations. Contactless check-ins,
mobile apps, and virtual experiences are becoming increasingly prevalent.
Your Company will continue to focus on both development and expansion
of markets and share gains as appropriate to secure competitive growth. Supply Chain
Security & Risk Management will be a key area to prevent disruptions due to factors
like weather, labour issues.
INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY
The management of the Company is committed to ensuring effective
internal control systems commensurate with the size and the complexity of the business.
The Company has an effective and reliable internal control system. In line with the
business operations, Company has well-planned internal control framework, which covers
various aspects of governance, compliance, audit, control, and reporting. It ensured
adherence to local statutory requirements for orderly and efficient conduct of business,
safeguarding of assets, the detection and prevention of frauds and errors, adequacy and
completeness of accounting records and timely preparation of reliable financial
information.
Audit Committee monitors and provides an effective supervision of the
financial reporting process of the Company with a view to ensure accurate and timely
disclosures with the highest level of transparency, integrity, and quality. It also
confirms adequacy and effectiveness of internal control systems and suggests for the
improvements required, if any.
DISCUSSION ON FINANCIAL PERFORMANCE
This has been adequately stated in the Directors? Report.
SEGMENT WISE PERFORMANCE
The Company operates within a single business segment.
HUMAN RESOURCES DEVELOPMENT
Your company strongly believes that its intrinsic strength lies in the
quality of its pool of dedicated and motivated employees. All the success so far achieved
by Balurghat Technologies Limited is mainly on their account. Management remains confident
of the ability of our company employees to stand up to business expectations in various
scenarios and serve the Company satisfactorily in the days to come.
|
For and on behalf of the Board of Directors |
|
Balurghat Technologies Limited |
|
Gita Sharma |
Pawan Kumar Sethia |
Dated: 27.05.2023 |
Chairperson |
Managing Director |
Place: Kolkata |
DIN 06766560 |
DIN 00482462 |
|